Literature Overview and Basic Information
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Li, Peng-Yu & Cheng, Shu-Ling (2022). A Study on CSR Disclosure of International Retailers: A Comparison between Carrefour France and Taiwan’s President Chain Store Corporation. Management Review, 42(2), 41-60.
I. Research Focus and Context
This study examines the French multinational Carrefour and Taiwan’s President Chain Store Corporation Corporation (7-Eleven) as research subjects, utilizing computer-assisted content analysis of their annual reports and sustainability reports published between 2013 and 2020. By analyzing the content of these documents, the study identifies the key Corporate Social Responsibility (CSR) issues emphasized by the two companies. The results reveal that President, operating in a home country with a relatively lower level of CSR development (as a follower), discloses a greater volume and variability of CSR information compared to Carrefour, whose home country exhibits a higher level of CSR development (as a leader). Conversely, Carrefour demonstrates a larger growth rate in information disclosure, with a focus on employment and environmental issues, whereas President emphasizes disclosure related to community involvement. Over the long term, both international retail firms have increased their CSR disclosures annually and have progressively prioritized information related to community participation, employment, and environmental aspects.
This article synthesizes and explains the theories and influencing factors behind corporate CSR disclosure. It also addresses an underexplored area in prior research—the international retail industry—by comparing CSR disclosure volumes and focal points between retailers from different countries. These differences reflect variations in economic conditions, legal frameworks, and CSR development practices across countries, which in turn influence the amount and emphasis of CSR disclosures by local international retailers. Such differences also indicate varying corporate priorities and communication strategies in responding to stakeholders.
Particularly for multinational enterprises, the disparities between the home country and host country environments, as well as regulatory and practical differences among multiple host countries, complicate CSR engagement. Multinational firms must balance consistency with sensitivity to local environmental differences. Nonetheless, operations across diverse regions also facilitate the accumulation of CSR experience and capabilities, enabling firms to leverage practical knowledge gained in different locales to enhance their CSR practices globally.
II. Theoretical Background: Why Do Firms Disclose CSR
This paper synthesizes the theoretical foundations explaining corporate disclosure of Corporate Social Responsibility (CSR) in prior literature. Institutional theory explains how the institutional environments of different countries—reflecting the interplay of social, political, and economic factors, which regulate corporate behavior. Particularly in emerging markets, firms facing institutional voids actively disclose CSR information to mitigate stakeholder biases, reduce operational barriers when entering foreign markets, and establish legitimacy. The legitimacy perspective emphasizes that firms continuously strive to ensure their activities align with societal expectations and norms, effectively responding to stakeholders by transparently disclosing good corporate governance and social responsibility efforts, thereby enhancing their legitimacy. Signaling theory posits that in markets lacking information and institutional frameworks, CSR participation serves as a positive signal of managerial capability to stakeholders, contributing to improved firm performance. Stakeholder theory further suggests that by addressing the diverse and sometimes conflicting demands of various stakeholder groups, firms can enhance their reputation and attract investor favor. Lastly, the cognition and interpretation of senior managers regarding environmental impacts assist organizations in formulating effective strategic choices to meet challenges posed by multiple external stakeholders. Collectively, these multiple theoretical perspectives illustrate how firms evolve from using CSR disclosure primarily to build legitimacy and overcome market entry and competition barriers, toward leveraging CSR disclosure to establish competitive advantages, differentiate from rivals, respond to diverse stakeholders, enhance reputation, and ultimately improve performance outcomes.
III. Factors Influencing the Degree of CSR Disclosure
The factors influencing the extent of corporate CSR disclosure can be categorized into four dimensions: national socio-political development, industry characteristics, firm-specific attributes, and temporal factors. Developed countries, characterized by more robust institutional environments, established CSR regulations, and longer histories of environmental CSR development, face greater stakeholder pressures; consequently, firms in these countries tend to disclose more CSR information compared to those in developing or emerging markets. Regarding industry influences, consumer-facing, and energy-related sectors—due to their direct interaction with consumers and their environmentally sensitive and polluting nature—tend to disclose more CSR information and require stronger environmental responsiveness and management capabilities. At the firm level, company size reflects the resources and capacities available for CSR disclosure, influencing the scope of CSR items disclosed, while the degree of internationalization enhances firms’ ability to communicate effectively with global stakeholders, thereby increasing the emphasis on CSR disclosure. In terms of corporate governance, greater board independence and larger board size facilitate improved investor access to company information, resulting in more extensive CSR disclosures. Over time, as firms’ capabilities evolve and external environments change, companies increase the volume of CSR information disclosed and adjust the focus and dimensions of their disclosures to meet and respond to stakeholder expectations. These findings demonstrate that when engaging in CSR disclosure, a firm’s emphasis is comprehensively influenced by the country’s developmental stage, industry norms, and the firm’s own resources and experiential capabilities.
IV. Empirical Findings: Carrefour vs. President
The analysis reveals differences between the two international retailers in both the volume and focus of their CSR disclosures.
First, Carrefour, the French multinational, exhibits a greater increase in the amount of disclosed information compared to Taiwan’s President Chain Store Corporation (President). A more detailed examination by dimension shows that Carrefour places greater emphasis on disclosures related to employment and environmental issues. This reflects the heightened attention to employment concerns in Europe in recent years, which has influenced Carrefour to continuously increase its focus on this area, with environmental information being the next most emphasized. In contrast, President discloses the most information regarding community involvement, followed by environmental issues. This suggests that firms from countries with less developed CSR environments tend to disclose more community development information to mitigate stakeholder concerns about more visible issues such as environmental impact.
Second, the amount of information disclosed across different CSR dimensions varies between the two companies, reflecting their differing priorities. Carrefour shows the greatest variation in employment-related disclosures, with the least variation in human rights issues. President, on the other hand, exhibits the largest change in environmental disclosures and the smallest in human rights disclosures. This indicates that firms from more economically developed countries with more extensive disclosure experience—such as Carrefour—tend to emphasize social welfare topics, whereas firms like President, which are less advanced in CSR practices, focus more on environmental issues to better address Taiwanese stakeholders’ expectations regarding environmental protection.
Third, both retailers have increased their CSR disclosure volumes year by year. This trend reflects the retail industry’s close connection to socio-economic activities and proximity to consumers, as well as the greater complexity of multinational retail operations. Stakeholders increasingly demand higher transparency and stricter regulations, leading to growing pressure on firms to respond with more comprehensive disclosures. This also demonstrates that as firms accumulate experience and resources, they become more adept at crafting reports that effectively address stakeholder concerns.
Fourth, over the long term, international retailers have increasingly expanded their CSR disclosures to cover multiple dimensions—such as environment, employment, and community involvement—rather than focusing on a single aspect.
Note: For detailed references, please consult the original article.
*The financial support of the Research Institute for the Humanities and Social Sciences, National Science and Technology Council, is gratefully acknowledged.