Corporate Social Responsibility Disclosures in International Construction Business: Trends and Prospects
This article has been corrected.
VIEW CORRECTIONPublication: Journal of Construction Engineering and Management
Volume 142, Issue 1
Abstract
There is increasing sophistication in corporate social responsibility (CSR) disclosures by international construction companies (ICCs). Nevertheless, a systematic analysis of the trends and prospects is yet to appear. This study fills that knowledge gap by providing an understanding of the idiosyncrasies of CSR disclosures and by offering suggestions for future reporting exercises. By examining the top fifty ICCs’ CSR/sustainability reports using content analysis, it is found that the more negative effects a company may have, the more remedial strategies it will disclose in a CSR report. ICCs from economically more developed countries maintain a high level of CSR disclosures, while their counterparts from developing countries have caught up in this CSR cause. As a way to improve the consistency and integrity of disclosed information, ICCs are increasingly adopting CSR reporting guidance frameworks and using third-party assurances. CSR disclosures present a high degree of uniformity while they also show nuanced and intriguing diversity. This research helps understand comprehensively the trends of CSR disclosures in the international construction. It will help ICCs extrapolate their future CSR reporting exercises.
Get full access to this article
View all available purchase options and get full access to this article.
References
Argenti, P. A. (2004). “Collaborating with activists: How starbucks works with NGOs.” Calif. Manage. Rev., 47(1), 91–116.
Bae, J. H., and Salomon, R. M. (2010). “Institutional distance in international business research.” Advances in international management: The past, present and future of international business and management, Devinney, T., et al., eds., Vol. 23, Emerald, New York.
Bowen, P., Akintoye, A., Pearl, R., and Edwards, P. J. (2007). “Ethical behavior in the South African construction industry.” Constr. Manage. Econ., 25(6), 631–648.
Brown, N., and Deegan, C. (1998). “The public disclosure of environmental performance information—A dual test of media agenda setting theory and legitimacy theory.” Acc. Bus. Res., 29(1), 21–41.
Burden, J., and Roodt, G. (2007). “Grounded theory and its application in a recent study on organizational redesign: some reflections and guidelines.” SA J. Hum. Resour. Manage., 5(3), 11–18.
Campbell, D. J. (2000). “Legitimacy theory or managerial reality construction? Corporate social disclosure in Marks and Spencer Plc corporate reports, 1969-1997.” Acc. Forum, 24(1), 80–100.
Carroll, A. B., and Shabana, K. M. (2010). “The business case for corporate social responsibility: A review of concepts, research and practice.” Int. J. Manage. Rev., 12(1), 85–105.
Chiu, I. H. (2010). “Standardization in corporate social responsibility reporting and a universalist concept of CSR—A path paved with good intentions.” Florida J. Int. Law, 22, 361.
Cho, C. H., and Patten, D. M. (2007). “The role of environmental disclosures as tools of legitimacy: A research note.” Acc. Organ. Soc., 32(7), 639–647.
CRESS. (2014). “Sustainability reporting guidelines & construction and real estate sector supplement.” 〈https://www.globalreporting.org/resourcelibrary/G3-1-English-Construction-and-Real-Estate-Sector-Supplement.pdf〉.
Cuganesan, S., Guthrie, J., and Ward, L. (2010). “Examining CSR disclosure strategies within the Australian food and beverage industry.” Acc. Forum, 34(3–4), 169–183.
Dahlsrud, A. (2008). “How corporate social responsibility is defined: An analysis of 37 definitions.” Corporate Social Responsibility Environ. Manage., 15(1), 1–13.
Deegan, C. (2002). “Introduction: The legitimizing effect of social and environmental disclosures—A theoretical foundation.” Acc. Audit. Acc. J., 15(3), 282–311.
Ebner, D., and Baumgartner, R. J. (2006). “The relationship between sustainable development and corporate social responsibility.” Corporate Responsibility Research Conf. (CRRC), Dublin, Ireland.
EU Construction Statistics. (2014). “The construction activity in Europe.” European Construction Industry Federation, Brussels.
Farook, S., Hassan, M. K., and Lanis, R. (2011). “Determinants of corporate social responsibility disclosure: The case of Islamic banks.” J. Islamic Acc. Bus. Res., 2(2), 114–141.
Flanagan, R., and Jewell, C. (2014). “The future is now-improving construction performance, productivity, process, and profits- the China perspective.” Keynote Speech at the 19th Int. Symp. on the Advancement of Construction Management and Real Estate, Chongqing, China.
Fox, E. (2000). Ethics and the built environment, Routledge, Oxon.
Freeman, R. E. (1984). Strategic management: A stakeholder approach, Pitman Publishing, Marshfield, MA.
Gray, R., Owen, D., and Maunders, K. (1987). Corporate social reporting: Accounting and accountability, Prentice-Hall, London.
Griffin, J. J., and Mahon, J. F. (1997). “The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research.” Bus. Soc., 36(1), 5–31.
Griffith, A. (2011). “Fulfilling contractors’ corporate social responsibilities using standards-based management systems.” Int. J. Constr. Manage., 11(2), 37–47.
Guthrie, J., and Parker, L. D. (1989). “Corporate social reporting: a rebuttal of legitimacy theory.” Acc. Bus. Res., 19(76), 343–352.
Halme, M., and Huse, M. (1997). “The influence of corporate governance, industry and country factors on environmental reporting.” Scand. J. Manage., 13(2), 137–157.
Herzig, C., and Schaltegger, S. (2006). “Corporate sustainability reporting. An overview.” Sustainability accounting and reporting, S. Schaltegger, M. Bennett, and R. Burritt, eds., Springer, Dordrecht, Netherlands, 301–324.
Hill, R. C., and Bowen, P. A. (1997). “Sustainable construction: Principles and a framework for attainment.” Constr. Manage. Econ., 15(3), 223–239.
Hillman, A. J., and Keim, G. D. (2001). “Shareholder value, stakeholder management, and social issues: What’s the bottom line?” Strat. Manage. J., 22(2), 125–139.
ISO. (2010). “Social responsibility.” ISO 26000, Geneva.
Jenkins, H., and Yakovleva, N. (2006). “Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure.” J. Cleaner Prod., 14(3), 271–284.
Jones, T., Shan, Y., and Goodrum, P. M. (2010). “An investigation of corporate approaches to sustainability in the US engineering and construction industry.” Constr. Manage. Econ., 28(9), 971–983.
Kogut, B., and Singh, H. (1988). “The effect of national culture on the choice of entry mode.” J. Int. Bus. Stud., 19(3), 411–432.
Kolk, A., Walhain, S., and Van de Wateringen, S. (2001). “Environmental reporting by the Fortune Global 250: Exploring the influence of nationality and sector.” Bus. Strat. Environ., 10(1), 15–28.
Krippendorff, K. (2012). Content analysis: An introduction to its methodology, Sage, London.
Lee, M. (2011). “Hillary Clinton warns Africa of ‘new colonialism’.” 〈http://www.huffingtonpost.com/2011/06/11/hillary-clinton-africa-new-colonialism_n_875318.html〉.
Leximancer Desktop [computer software]. Brisbane, Australia, Leximancer.
Lin, L.-W. (2010). “Corporate social responsibility in China: Window dressing or structural change?” Berkeley J. Int. Law., 28(1), 64–100.
Liu, A. M. M., Fellows, R., and Ng, J. (2004). “Surveyors perspectives on ethics in organizational culture, engineering.” Constr. Archit. Manage., 11(6), 438–449.
Lu, W. S., Chau, K. W., Wang, H. D., and Pan, W. (2014). “A decade’s debate on the nexus between corporate social and corporate financial performance: A critical review of empirical studies 2002–2011.” J. Cleaner Prod., 79, 195–206.
Lu, W. S., Li, H., Shen, L., and Huang, T. (2009). “Strengths, weaknesses, opportunities, and threats analysis of Chinese construction companies in the Global market.” J. Manage. Eng., 166–176.
Lu, W. S., Liu, A. M. M., Rowlinson, S., and Poon, S. W. (2013a). “Sharpening competitive edge through procurement innovation: Perspectives from Chinese international construction companies.” J. Constr. Eng. Manage., 347–351.
Lu, W. S., and Tam, V. W. Y. (2013). “Construction waste management policies and their effectiveness in Hong Kong: A longitudinal review.” Renewable Sustainable Energy Rev., 23, 214–223.
Lu, W. S., Ye, K. H., Flanagan, R., and Jewell, C. (2013b). “Developing construction professional services in the international market: SWOT analysis of China.” J. Manage. Eng., 302–313.
Maignan, I., and Ralston, D. A. (2002). “Corporate social responsibility in Europe and the U.S.: Insights from businesses’ self-representations.” J. Int. Bus. Stud., 33(3), 497–514.
Margolis, J. D., and Walsh, J. P. (2001). People and profits? The search for a link between a company’s social and financial performance, Lawrence Eribaum, Mahwah, NJ.
Mathews, M. R. (1993). Socially responsible accounting, Chapman and Hall, London.
McKinsey & Company. (2011). “The business of sustainability: McKinsey global survey results.” 〈http://www.mckinsey.com/insights/energy_resources_materials/the_business_of_sustainability_mckinsey_global_survey_results〉.
Murray, M., and Dainty, A. (2008). “Corporate social responsibility: Challenging the construction industry.” Corporate social responsibility in the construction industry, M. Murray and A. Dainty, ed., Taylor & Francis, London, 23–118.
National Bureau of Statistics of China. (2014). “China statistical yearbook 2014 (Chinese-English edition).” China Statistics Press, Beijing.
Ngowi, A., Pienaar, E., Talukhaba, A., and Mbachu, J. (2005). “The globalisation of the construction industry—A review.” Build. Environ., 40(1), 135–141.
O’Donovan, G. (2002). “Environmental disclosures in the annual report: Extending the applicability and predictive power of legitimacy theory.” Acc. Audit. Acc. J., 15(3), 344–371.
Ofori, G. (1993). “Research on construction industry development at the crossroads.” Constr. Manage. Econ., 11(3), 175–185.
Orlitzky, M., Schmidt, F. L., and Rynes, S. L. (2003). “Corporate social and financial performance: A meta-analysis.” Organ. Stud., 24(3), 403–441.
Patten, D. M. (1992). “Exposure, legitimacy, and social disclosure.” J. Acc. Public Policy, 10(4), 297–308.
Pearce, D. W. (2003). “Environment and business: Socially responsible but privately profitable?” The challenge of change: Fifty years of business economics, J. Hirst, ed., Profile Books, London, 54–65.
Petrovic-Lazarevic, S. (2008). “The development of corporate social responsibility in the Australian construction industry.” Constr. Manage. Econ., 26(2), 93–101.
Porter, M. E., and Kramer, M. R. (2006). “Strategy and society: The link between competitive advantage and corporate social responsibility.” Harv. Bus. Rev., 84(12), 78–92.
Reina, P., and Tulacz, G. J. (2013). “The top 250 international contractors.” Eng. News Rec., 271(8), 2.
Renneboog, L., Ter Horst, J., and Zhang, C. (2008). “Socially responsible investments: Institutional aspects, performance, and investor behavior.” J. Banking Finance, 32(9), 1723–1742.
Roberts, R. W. (1992). “Determinants of corporate social responsibility disclosure: An application of stakeholder theory.” Acc. Organ. Soc., 17(6), 595–612.
Roca, L. C., and Searcy, C. (2012). “An analysis of indicators disclosed in corporate sustainability reports.” J. Cleaner Prod., 20(1), 103–118.
Rode, P., Burdett, R., and Goncalves, J. (2011). “Buildings: Investing in energy and resource efficiency.” UNEP. Towards a green economy: Pathways to sustainable development and poverty eradication, United Nations Environment Programme, Nairobi, Kenya.
Skanska. (2014). “Sustainability review.” 〈http://group.skanska.com/globalassets/sustainability/reporting--publications/sustainability-reporting/skanska-sustainability-review-2014.pdf〉.
Stemler, S. (2001). “An overview of content analysis.” Pract. Assess. Res. Eval., 7(17), 137–146.
Sui Pheng, L., and Hongbin, J. (2003). “Internationalization of Chinese construction enterprises.” J. Constr. Eng. Manage., 589–598.
Tijhuis, W., and Fellows, R. (2011). Culture in international construction, Spon Press, London.
Transparency International. (2008). “Bribe payers index 2008.” 〈http://archive.transparency.org/policy_research/surveys_indices/bpi/bpi_2008〉 (Aug. 3, 2014).
UN Global Compact. (2013). “Global compact international yearbook, 2013.” 〈http://csr-manager.org/yearbook-2013/〉 (May 25, 2014).
U.S. Bureau of Labor Statistics. (2014). “Current employment statistics highlights: Detailed industry employment analysis.” Washington, DC.
Waller, D. S., and Lanis, R. (2009). “Corporate social responsibility (CSR) disclosure of advertising agencies: An exploratory analysis of six holding companies’ annual reports.” J. Advertising, 38(1), 109–122.
Willis, A. (2003). “The role of the global reporting initiative’s sustainability reporting guidelines in the social screening of investments.” J. Bus. Ethics, 43(3), 233–237.
Wilmshurst, T. D., and Frost, G. R. (2000). “Corporate environmental reporting: A test of legitimacy theory.” Acc. Audit. Acc. J., 13(1), 10–26.
Windsor, D. (2001). “The future of corporate social responsibility.” Int. J. Organ. Anal., 9(3), 225–256.
Yongvanich, K., and Guthrie, J. (2005). “Extended performance reporting: An examination of the Australian mining industry.” Acc. Forum, 29(1), 103–119.
Zhao, Z. Y., Zhao, X. J., Davidson, K., and Zuo, J. (2012). “A corporate social responsibility indicator system for construction enterprises.” J. Cleaner Prod., 29-30, 277–289.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 142 • Issue 1 • January 2016
Copyright
© 2015 American Society of Civil Engineers.
History
Received: Aug 17, 2014
Accepted: May 28, 2015
Published online: Jul 9, 2015
Discussion open until: Dec 9, 2015
Published in print: Jan 1, 2016
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.