The Influence of External Pressure Groups on Corporate Social Disclosure: Some Empirical Evidence

Abstract

Many social accounting researchers refer to environmental pressure groups as being a major influence on companies′ decisions to disclose social information. Such a claim is, however, to date unsubstantiated. Virtually no empirical evidence has been produced which confirms or refutes this proposition. Similarly there is no literature on pressure groups′ interest in, or reaction to, corporate social disclosure (CSD). Provides the first, albeit exploratory, investigation of such pressure groups and their potential influence on the production of CSD. Results show that pressure groups are users of CSD and do attempt to influence companies′ disclosure practices. The environmental movement considers current CSD to be insufficient and low in credibility. The preferred corporate social report (for pressure groups) would include narratives and quantified terms, would be in the annual report and would be prepared by, certified by, and/or held by a body external to the company.