Naslov
The effect of corporate social disclosure practice on reporting quality: Evidence from the insurance sector in Croatia

Autori
Dropulić, Ivana ; Čular, Marko

Izvornik
Management: Journal of Contemporary Management Issues (1331-0194) 24 (2019), 2; 23-38

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
Corporate Social Responsibility (CSR), Corporate Social Disclosure Index (CSDI), Disclosure Quality Index of annual report (DQI), Insurance sector, Croatia.

Sažetak
This paper is striving to provide an insight into the importance of Corporate Social Responsibility (CSR) for the insurance sector and it is also aiming to examine various corporate social responsibility initiatives undertaken by insurance companies in Croatia. There is a broad range of potential benefits from CSR for insurance companies such as long- term sustainability and profitability, yet only several research studies on CSR practices have thus far been conducted on the insurance sector. Hence, the objective of this research is to determine the level of corporate social responsibility reporting for insurance and reinsurance companies in Croatia and its impact on reporting quality. The empirical research is based on online reporting of six aspects of corporate social responsibility to determine Corporate Social Disclosure Index (CSDI). Reporting quality is measured with Disclosure Quality Index of annual report (DQI) which comprises of five stages. This research includes all 24 insurance and reinsurance companies in Croatia and the research findings show that all insurance and reinsurance companies in Croatia publish information at least concerning two aspects of corporate social responsibility. Furthermore, they are the most transparent regarding the human resources aspect of corporate social responsibility activities and the least transparent concerning environmental aspect of corporate social responsibility activities. The overall level of corporate social responsibility disclosure for insurance sector in Croatia is quite low, so we can conclude that insurance and reinsurance companies in Croatia do not have a high level of corporate social responsibility online disclosure. Considering the issue of reporting quality, insurance and reinsurance companies have the average quality of annual report, measured by Disclosure Quality Index of annual report. According to research findings, corporate social responsibility reporting on the Internet is positively associated with Disclosure Quality Index of annual report and hence a conclusion can be reached that more socially responsible insurance and reinsurance companies provide the annual report of a higher quality. Business and society interact and exert a mutual influence through their specific objectives and goals and consequently the link between business and society is indisputable. Companies, as a segment of society, that implemented corporate social responsibility and those that provide high quality information through their annual reports can achieve a number of economic benefits such as superior business results and considerable competitive advantage, yet also the society benefits from socially responsible companies as it obtains a better care concerning both its own well-being and that of the environment.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA