Social Trust and Assurance of Corporate Social Responsibility Reports: Evidence From Chinese Listed Firms

ABSTRACT Corporate social responsibility (CSR) reporting is critical for sustainable business practices. However, the reliability and transparency in CSR reporting raise significant concerns. Although formal regulations and institutional frameworks are often used to explain the need for CSR assurance, the role of informal institutions, particularly social trust, in driving CSR assurance remains underexplored. Grounded in institutional theory, this study uses Chinese A‐share listed companies from 2010 to 2018 to examine how social trust affects CSR assurance decisions. Social trust enhances external institutional development and internal governance quality, driving firms' decisions to obtain CSR assurance. The positive influence of social trust on CSR assurance is pronounced if the state is the majority shareholder and the firm operates in regions with high social governance. The findings provide insights for corporate leaders and managers into how social trust within institutional contexts drives credible CSR practices and promotes effective and trustworthy corporate governance.