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Are Corporate Social Responsibility (CSR) Disclosure High Performers Authentic? - Perspective from Supply Chain Cash Conversion Cycle (CCC)

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Supply Chain Risk and Innovation Management in “The Next Normal” (ICOSCM 2021)

Part of the book series: Responsible Innovation in Industry ((RII))

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Abstract

Although with significant momentum in quantity for over ten years, Chinese firms’ CSR disclosures have been criticised as low comparability, content quality and reliability. The situation reveals that Chinese CSR disclosure may be in an institutionalised box-ticking fashion, and consequently, the questionable CSR authenticity. Thus, this study tries to empirically consider whether CSR disclosure high performers are authentic and really responsible supply chain members. The study defines the supply chain egocentrism index, calculated as the ratio of the Focal firm’s cash conversion cycle (CCCFF) to the sum of Suppliers’ CCC (CCCS) and Customers’ CCC (CCCC), as the proxy for the extent of the firm’s CSR inauthenticity. It shows the focal firm’s egocentrism in winning finance advantages by suppressing other supply chain stakeholders’ welfare. Four quadrants of CSR authenticity are identified based on the discrepancy between CSR disclosure score and the egocentrism index: questionable authenticity, grey zone, authentic CSR and silent saint. By comparing features between firms in different quadrants, the study provides a new angle to view the relationship between CSR ratings and corporate features considering CSR authenticity and supply chain network settings. The preliminary result shows that firms located in the first quadrant with questionable authenticity are statistically larger in firm size, especially than truly CSR authentic firms in the third quadrant and forth quadrant. The higher tendency of possibly abused CSR marketing for larger firms calls for a more substantial evaluation and related research on the CSR process performance and authenticity.

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Notes

  1. 1.

    http://www.rksratings.cn/ueditor/php/upload/file/20201101/1604217870886834.pdf.

  2. 2.

    Standards for the Contents and Formats of Information Disclosure by Companies Offering Securities to the Public No. 2 - Contents and Formats of Annual Reports (2014 Revision), available at: http://www.csrc.gov.cn/pub/csrc_en/laws/overRule/Announcement/201508/t20150816_282862.html.

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Authors and Affiliations

  1. University of Nottingham Ningbo China, Ningbo, Zhejiang, China

    Tian Xiao & Hing Kai Chan

  2. Zhejiang University of Finance and Economics, Hangzhou, Zhejiang, China

    Wenbin Ni

  3. University of Nottingham, Nottingham, UK

    Kim Hua Tan

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  1. Tian Xiao
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  2. Hing Kai Chan
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  3. Wenbin Ni
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  4. Kim Hua Tan
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Corresponding author

Correspondence to Tian Xiao .

Editor information

Editors and Affiliations

  1. China Europe International Business School, Shanghai, China

    Xiande Zhao

  2. Nottingham University Business School China, University of Nottingham Ningbo China, Ningbo, China

    Hing Kai Chan

  3. Xiamen University, Xiamen, China

    Guojun Ji

  4. Business School, University of International Business and Economics, Beijing, China

    Yinan Qi

  5. Northwestern Polytechnical University, Xian, China

    Qian Yang

  6. Jubilee Campus, University of Nottingham, Nottingham, UK

    Kim Hua Tan

  7. School of Business Administration, South China University of Technology, Guangzhou, China

    Yina Li

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Xiao, T., Chan, H.K., Ni, W., Tan, K.H. (2022). Are Corporate Social Responsibility (CSR) Disclosure High Performers Authentic? - Perspective from Supply Chain Cash Conversion Cycle (CCC). In: Zhao, X., et al. Supply Chain Risk and Innovation Management in “The Next Normal”. ICOSCM 2021. Responsible Innovation in Industry. Springer, Singapore. https://doi.org/10.1007/978-981-19-1464-5_9

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