Is Enforcing the Production and Filing of Corporate Social Responsibility Reports Conducive to Improving Corporate Performance?

摘要

To enhance food safety, environmental sustainability, and corporate governance, the Financial Supervisory Commission of Taiwan have required four types of listed companies to produce and file corporate social responsibility (CSR) reports since 2014: companies in the food, finance, and chemical industries and those with more than NT$40 billion in capital. This policy aims to enforce companies' commitment to social responsibility. However, does this policy boost companies' operating performance and help them achieve sustainable operations? This study employed data from the Taiwan Economic Journal and CSR reports from 2010 to 2017 for analysis. The operating performance of companies covered by this policy after it was implemented was not significantly better than that before policy implementation. For companies that voluntarily produced CSR reports before the policy, their return on assets was superior to that of companies that did not voluntarily produce CSR reports. The hypotheses were only partially supported by the results. The conclusions may provide a reference for companies reviewing their performance when complying with the policy to make improvements and adjustments accordingly and for the Financial Supervisory Commission in reviewing their policies.