An assessment of the Corporate Social Responsibility Disclosure Gap by companies listed on the Zimbabwe Stock Exchange (2009-2013)

Abstract

Corporate social responsibility disclosure (CSRD) has been on the increase over the last two decades. Developing economies having been catching up with developed economies in the area of social and environmental accounting. However, in the absence of proper reporting guidelines, lack of automated system for capturing, tracking and recording of CSR activities and the discretionary nature of CSR reporting in Zimbabwe, there is vast scope for CSRD gap. CSR under-disclosure constitutes a “missed” opportunity as companies could be leveraging on the myriad benefits of CSR disclosure. This thesis examines the predictors of corporate social responsibility disclosure (CSRD) gap by companies listed on the Zimbabwe Stock Exchange (ZSE). Limited studies have been conducted to investigate CSRD in general and CSRD gap in the context of Zimbabwe. A quantitative survey was conducted and 116 dully-completed questionnaires were analysed. Statistical analysis revealed existence of CSRD gap implying that not all social and environmental activities that listed companies on ZSE engage in are being reported. Company age, ownership concentration and the department assigned CSR responsibilities were significantly associated with CSRD gap. Following the research findings policy and managerial recommendations were suggested which should lead to narrowing of the CSRD gap if properly implemented.