Navigating external pressures: a study on CSR disclosure practices in an emerging region

The engagement of Chengdu with global initiatives, notably the Belt and Road Initiative (BRI), its nomination as a pilot city for International Sustainable Development, and its active participation in the C40 Cities Climate Leadership Group’s Green and Thriving Neighborhoods Initiative, has highlighted the increasing necessity for local companies to adopt sustainable development practices amid shifting global and national economic landscapes. This study probes the relationship between external organizational pressures and the corporate social responsibility (CSR) disclosure behaviors of listed firms. Employing content analysis of corporate annual reports and leveraging the integrated theoretical frameworks of legitimacy, stakeholder, and institutional theories, this study scrutinizes the influence of external pressure determinants on CSR disclosure practices among 68 listed companies in Chengdu throughout 2019 to 2020. Our empirical findings provide some critical insights. First, there is a discernible positive trend in the extent and quality of CSR disclosures in Chengdu despite these being at relatively modest levels. Second, environmental sensitive industries (ENVIs) and state-owned enterprises (OWNs) emerge as institutional stakeholders exerting a significant effect on both the extent and quality of CSR disclosure. Third, media exposure (MEDIA) analyzed through data from three officially designated newspapers in China serves a bifurcated function, amplifying the extent of CSR disclosures while inversely affecting their quality. These discoveries hold significant implications for companies and policymakers in Chengdu aiming to elevate sustainability practices influenced by external institutional stakeholders.