The boundary of corporate social responsibility reporting: the case of the airline industry

ABSTRACT

This paper explores the boundary of corporate social responsibility (CSR) reporting. We present a conceptual analysis of boundary definitions and an empirical analysis of boundary construction in practice. Boundary is an important, yet under-analysed concept, as it specifies the limits of accountability: what activities stakeholders may expect an organization to report on. The adoption of a narrow boundary will omit many impacts from disclosure, reducing the usefulness of CSR reports. Historically, boundary has been unchallenged, based on financial reporting concepts of control and significant influence. Recent thought suggests boundaries should vary on an issue-by-issue basis rather than being applied universally on an organizational level. A thematic analysis of 15 CSR reporting guidelines was undertaken to identify what constitutes boundary within CSR reporting. The emergent 40 determinants were ordered and classified into three boundary constructs: reputation management; ownership and control; accountability. Reporting content of 35 airline companies was coded according to these constructs, on an issue-by-issue basis (using relevant global reporting initiatives [GRI] indicators). Correlation analysis indicates: the adoption of selective, narrow definitions of boundary; an inverse relationship between boundary determination and stakeholder consultation, and; companies that claim compliance to GRI, on average, select narrower boundaries than non-signatories. Implications for research and for practice are highlighted.

KEYWORDS:

• Boundary
• corporate social responsibility reporting
• airline industry
• content analysis
• global reporting initiative

Acknowledgement

The authors would like to thank the reviewers for their insightful and helpful comments, and the editor of this special issue for their interest in this paper.

Disclosure statement

No potential conflict of interest was reported by the authors.

Additional information

Notes on contributors

Kate Ringham

Dr Kate Ringham is a principle lecturer. Kate's research interests are in the area of Corporate Social Responsibility Reporting. She has analysed the social construction of CSR reporting in the foodservice sector, the appropriation of concepts from financial reporting and the nature of the conceptual basis of CSR reporting.

Samantha Miles

Dr Samantha Miles is a reader in accounting and finance. Samantha's research interests are in the field of stakeholder theory, corporate social responsibility reporting and ethical investment.