Does the governance of Italian-listed family firms impact the reporting of social aspects?

Purpose This paper aims to explore how the governance structure of family-owned firms impacts their reporting and disclosure of the “S” (social) aspect of the environmental, social and governance framework. By applying the resource-based view theory, the upper echelons theory and the agency theory, the authors emphasise the “family control” variable to investigate whether it positively influences social information disclosure in sustainability reports. Design/methodology/approach To achieve the research purpose, the authors conducted a thorough study of family companies listed in Italy. The authors collected information on their governance practices and performed a qualitative content analysis of all the sustainability reports published by these companies from 2021 to 2023 to gather insights about the social dimension (GRI 400). The authors applied a quantitative method based on ordinary least squares to test and validate the central hypothesis. Findings Research results indicate that family firms typically exhibit higher levels of social disclosure, with a significant positive correlation between family firm status and the social disclosure index. Governance variables, including board independence and gender diversity, positively influence social disclosure, whereas board size and Chief Executive Officer duality have negative impacts. In addition, the moderation analysis implies that family firms gain advantages from certain governance characteristics, such as an increased number of independent directors and the inclusion of women on the board, to further enhance their social disclosure practices. Originality/value This study contributes to the social disclosure literature by analysing how family ownership can positively influence social disclosure practices, amplified by governance mechanisms such as board independence and gender diversity. Theoretical implications suggest that combining family ownership and substantial governance favours adopting corporate social responsibility policies. On a practical level, the results offer guidance for family firms to improve their social reputation, highlighting how greater board independence and gender diversity can promote transparency and accountability.