هیئت مدیره شرکت و تعهد مسئولیت اجتماعی شرکتی: شواهد از چین Corporate Board and Corporate Social Responsibility Assurance: Evidence from China

Introduction This study examines the association between corporate boards and a company’s decision to obtain corporate social responsibility (CSR) assurance in the Chinese setting. Assurance over CSR reports is considered an important means of enhancing the credibility and reliability of CSR reports, much like external auditing for financial reporting (Simnett et al. 2009). About 40 % of sustainability reports issued by large corporations on an international level are assured by a third party (Kolk and Perego 2010). As this assurance is voluntary in nature, it provides an appropriate setting in which to investigate the role of different players in this less regulated market. Empirical studies in CSR assurance have remained scant until recent examination by auditing researchers. For instance, previous studies cover multiple areas in CSR assurance: the process and trends of these practices (Wallage 2000; Deegan et al. 2006; O’Dwyer and Owen 2007); advantages of independent CSR assurance (Kolk and Perego 2010); firm-level drivers of CSR assurance (Mock et al. 2007; Perego 2009; Cho et al. 2014; Casey and Grenier 2015; Peters and Romi 2015); the impact of country and industry factors on the CSR assurance decision (Simnett et al. 2009); and the financial consequence or information users’ response to CSR assurance (Pflugrath et al. 2011; Cho et al. 2014; Cheng et al. 2015).1 However, the recent research agenda presented by Cohen and Simnett (2015) reveals that CSR assurance remains an under-researched, but potentially fruitful field. They call for rigorous auditing studies in this area. The present study responds to this call for CSR assurance research by investigating the relationship between corporate boards and CSR assurance in China. We are interested in the CSR assurance practice in the Chinese context following enormous achievements by Chinese corporations. China’s economy, after 30 years of economic development, has become the world’s second largest economy by nominal GDP, and the world’s largest economy by purchasing power parity. In addition to pursuing financial targets, the Chinese community and many Chinese firms have become more aware of the importance of CSR issues, and are willing to be identified as responsible corporate citizens by actively undertaking CSR activities. However, the environmental regulations in China are poorly implemented and business ethics are still being formed. There are companies spending substantial advertising money and issuing CSR reports to shape positive and environmentally friendly images, while recklessly depleting resources and polluting the environment. As revealed in the striking Sanlu melamine event,2 the lack of CSR assurance coincides with criticism over the reliability and transparency of CSR information. In this paper, we focus on the impact of different board characteristics on the company’s voluntary decision to obtain CSR assurance. The board of directors is the corporate governance mechanism to monitor, guide, and control corporations. The board makes essential strategic, operational and financial decisions and considers the needs of firms’ stakeholders (Jo and Harjoto 2012). Therefore, a well-governed board of directors should ensure reporting effectiveness and reporting quality.