Dose The Corporate Social Responsibility Report Improve The Fairness Inside The Company?

Since the 1990 s,the concept of corporate social responsibility has attracted worldwide attention.Benefiting from economic globalization,the rapid development of China's economy has promoted the rapid popularization of the concept of social responsibility in China.The government,the media and the public are urging enterprises to actively fulfill their social responsibilities and encouraging enterprises to disclose non-financial information.The CSR report,which is short for corporate social responsibility report,is an important way for enterprises to communicate with various stakeholders.Whether the interests of stakeholders are protected determines the survival of enterprises.In 2008,SHSE and SZSE issued documents on corporate disclosure of social responsibility reports.In 2009,the information disclosure system of corporate social responsibility under the mandatory guidance of China came into effect.This system requires some listed companies to issue social responsibility reports.And there are specific requirements for the preparation of social responsibility reports.Many scholars use relevant data of Chinese listed companies to study the economic consequences of the information disclosure system of corporate social responsibility under the mandatory guidance.But the impact of this system on corporate internal fairness is seldom studied.Based on Stakeholder Theory and reputation mechanism theory,this paper makes an empirical study on the relationship between the information disclosure of corporate social responsibility under the mandatory guidance of China and the pay gap of executive and employee.This paper takes the policy of requiring some companies to disclose social responsibility reports issued by the China Stock Exchange in 2008 as a quasiexperiment.The sample is the data of listed companies in China from 2003 to 2015.The differences-in-differences research design was used to do regression analysis.It is concluded that the policy of requiring companies to disclose social responsibility reports will significantly reduce the pay gap between executives and employees.Further research shows that the compensation gap caused by mandatory disclosure of social responsibility reporting policy in state-owned enterprises is more effective while comparing with non-state-owned enterprises.Among companies that are forced to disclose social responsibility report,the more analysts they track,the stronger the reduction effect.From the perspective of company size,the pay gap reduction effect caused by mandatory disclosure of social responsibility reporting policy is more effective in large-scale companies.As for those enterprises which disclose higher-quality CSR reports,this reduction effect are reinforced.In addition,this paper provides more robust evidence by using propensity score matching method,sample replacement method and key variable replacement method,which further supports the effect of mandatory social responsibility information disclosure on the reduction of pay gap between executives and employees.Finally,according to the conclusions of this paper,some policy recommendations are put forward.To sum up,the research evidence of this study shows that under the system of mandatory disclosure of social responsibility information,corporate social responsibility information disclosure plays a significant role in improving internal fairness and narrowing the internal pay gap,especially in state-owned enterprises or enterprises with more transparent information.Corporate social responsibility report can give non-equity stakeholders more information about the company.Faced with the pressure of social responsibility from various stakeholders,the company will actively assume social responsibility.Through the above research,the results of this study not only effectively complement the impact of mandatory disclosure of social responsibility information system,but also provide a reference for the formulation of future social responsibility information disclosure policy.