Effect of Hofstede's Cultural Differences in Corporate Social Responsibility Disclosure

摘要

This paper looks at culture differences in sustainability reporting among countries. The authors use data from the survey conducted by KPMG in 2008 within 22 countries, applying Hofstede 's framework. The authors find an effect of culture on the interest in highlighting the credibility of sustainability reports in different countries. Level of corporate social responsibility disclosure, on the other hand, does not change with cultural differences, but with the levels of enforcement of the regulations. The results are revealing, given that assurance statements are not mandatory. Companies in countries with collectivistic characteristics and low power distance do not need to increase their credibility in terms of the disclosure levels of corporate social responsibility; they are democratic and careful of their inner group. On the contrary, companies in countries with individualistic characteristics and high power distance need to run the extra mile to show their commitment and guarantee that their reporting on social responsibility is transparent.