Why do corporations across industry incur cost to disclose ethical and environmental information and how does it matter? An exploratory study of four Swedish corporations across industry

Abstract: The recognition of Corporate Social Responsibility (CSR) has increasingly become a key issue for today’s corporations. There is increasing public interest as a result of globalization in the world economy. Corporations adjust to rapid changes by extending beyond the traditional business model that is dominated by short-run profit maximization with the focus on economic aspects of company’s activities. It appears that corporations move beyond that extent to enhance both accountability and transparency in social and environmental commitment by internalizing such concerns into their operation. Not only are these designed to prevent potential criticism and pressure from media and public activists that play a crucial role shaping community awareness, but also to enhance their relations with key stakeholders. This research aims to gain a deeper understanding of corporate implementation of social and environmental responsibility and to become familiar with why organizations incur the cost to publish their operational activities that impact on social and environment. In order to achieve the purpose of this study, an exploratory study will be used as a key to examine through different characteristic of four Swedish corporations across industry. The research found that the benefits of having a CSR engagement are numerous and include strengthening profits, enhancing brand recognition and reputation as well as boosting employment relations. This study also examines the theoretical importance of stakeholder analysis and the motive behind the efforts to disclose information arising from different factors. This paper draws a conclusion to the extent to which communicating information voluntarily to public or disclosure about firms undertaking such activities can significantly affect stakeholders’ decision-making and contribute to the public’s perception.