PAPERZILLA
Crunching Academic Papers into Bite-sized Insights.
About
Sign Out
← Back to papers
Social Sciences › Economics, Econometrics and Finance › Finance
Mandatory CSR and sustainability reporting: economic analysis and literature review
★
★
★
★
☆
SHARE
Overview
Paper Summary
Conflicts of Interest
Identified Weaknesses
Rating Explanation
Good to know
Topic Hierarchy
File Information
Paper Summary
Paperzilla title
Reporting on Doing Good: Does it Make Firms Actually Do Better? (Maybe, But It's Complicated)
Mandating CSR and sustainability reporting could improve transparency, comparability, and investor decision-making, potentially leading to better capital allocation and real effects on firm behavior. However, the effectiveness of such a mandate depends crucially on addressing implementation challenges like defining materiality, mitigating boilerplate language, ensuring enforcement, and considering potential unintended consequences for firms and various stakeholders.
Possible Conflicts of Interest
The authors acknowledge receiving funding from the Sustainability Accounting Standards Board (SASB) for an earlier research report that formed the basis for this study. While this version is presented as independent, the prior funding relationship could be considered a potential conflict of interest.
Identified Weaknesses
Difficulty Isolating Reporting Effects
The paper acknowledges the difficulty in isolating the effects of CSR reporting from the effects of the underlying CSR activities, as both are often voluntary and driven by similar economic forces. This makes it hard to establish a causal link between reporting and outcomes like firm value or stock returns.
Selection Bias in Voluntary Disclosure Studies
Many studies cited rely on voluntary CSR disclosures, leading to selection bias. Firms choosing to disclose CSR information might already be different from those who don't, making it hard to generalize findings about the effects of disclosure to all firms. This limits the applicability of the findings for policy recommendations on mandatory reporting.
Limited Evidence on Broad CSR Mandates
The paper acknowledges the scarcity of research directly examining the real effects of CSR reporting mandates, especially on a broad scale. Most existing studies focus on specific disclosure items or particular regulatory initiatives rather than comprehensive reporting standards. This makes it hard to predict the full impact of a broad CSR mandate.
Implementation Challenges for CSR Reporting
The paper highlights significant implementation challenges for CSR reporting. These include establishing a consistent materiality standard, mitigating the use of boilerplate language, and ensuring effective enforcement. Without addressing these challenges, a mandate could be costly and ineffective.
Rating Explanation
This is a comprehensive and insightful literature review on a timely and relevant topic. The paper effectively synthesizes a large body of academic research and identifies key trade-offs associated with mandatory CSR reporting. While the evidence base for broad CSR mandates is still developing, the analysis provides a valuable framework for policymakers and future research. The potential conflict of interest related to prior SASB funding slightly reduces the rating.
Good to know
This is our free standard analysis. Paperzilla Pro fact-checks every citation, researches author backgrounds and funding sources, and uses advanced AI reasoning for more thorough insights.
Explore Pro →
Topic Hierarchy
File Information
Original Title:
Mandatory CSR and sustainability reporting: economic analysis and literature review
File Name:
s11142-021-09609-5.pdf
[download]
File Size:
1.29 MB
Uploaded:
July 14, 2025 at 05:12 PM
Privacy:
🌐 Public
© 2025 Paperzilla. All rights reserved.