Determinants of corporate social responsibility disclosure: evidence from Morocco

Purpose This study examines the impact of corporate characteristics and governance on the extent of corporate social responsibility disclosure (CSRD) by non-financial listed companies in Morocco. Design/methodology/approach We employ three main theories —legitimacy theory, stakeholder theory, and agency theory — to study the relationship between firm characteristics (size, age, profitability, leverage), governance characteristics (Board size, Board independence, Board diversity, CEO duality, Audit firm, and foreign members), and the extent of CSRD. To measure the extent of CSRD, we use a disclosure index comprising 64 items, grouped into five categories: environmental, human resources, product and consumer, community, and governance. Data from the annual reports of all non-financial companies listed on the Casablanca Stock Exchange (CSE) from 2019 to 2023 were used. The present research used generalized least squares (GLS) estimation. Findings We found that five factors impact the extent of CSRD in listed companies' annual reports: company size, board size, proportion of women directors, CEO duality, and foreign board members. On the other hand, our results indicate no significant relationship between CSRD and the remaining variables in our model. Originality/value To our knowledge, our study is among the first to empirically explore the relationship between corporate governance mechanisms and the CSRD in Morocco. Our research thus enriches the existing literature on CSRD, particularly in developing countries where governments play a key role in promoting economic growth. The research findings provide policymakers with various recommendations for identifying the corporate governance elements that will encourage CSRD among Moroccan listed companies.