Economic Analysis of Widespread Adoption of CSR and Sustainability Reporting Standards

170 Pages Posted: 25 Jan 2019

See all articles by Hans Bonde Christensen

Hans Bonde Christensen

University of Chicago - Booth School of Business

Luzi Hail

University of Pennsylvania - The Wharton School

Christian Leuz

University of Chicago - Booth School of Business; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Center for Financial Studies (CFS); University of Pennsylvania - Wharton Financial Institutions Center; CESifo Research Network

Date Written: November 30, 2018

Abstract

This report provides an economic analysis for a widespread adoption of corporate social responsibility (or sustainability) disclosure and reporting standards in the United States. It is based on an extensive review of the academic literature in accounting, economics, finance, and management. We discuss possible economic consequences, including capital-market effects, real effects in firm behavior, and implementation issues related to the adoption of CSR standards. The report focuses on the economic effects of standards for disclosure and reporting, not on the economic effects of CSR activities and policies themselves. Our analysis yields a number of insights that are relevant to the current debate on CSR and sustainability reporting standards.

Keywords: Accounting, Regulation, SASB, GRI, Standard setting, Mandatory disclosure, Sustainability, CSR, Environmental, social and governance (ESG) factors

JEL Classification: F30, G30, K20, L21, M14, M41, M48

Suggested Citation

Christensen, Hans Bonde and Hail, Luzi and Leuz, Christian, Economic Analysis of Widespread Adoption of CSR and Sustainability Reporting Standards (November 30, 2018). Available at SSRN: https://ssrn.com/abstract=3315673 or http://dx.doi.org/10.2139/ssrn.3315673

Hans Bonde Christensen

University of Chicago - Booth School of Business ( email )

5807 South Woodlawn Avenue
Chicago, IL 60637
United States

Luzi Hail (Contact Author)

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States
215-898-8205 (Phone)
215-573-2054 (Fax)

Christian Leuz

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-834-1996 (Phone)

HOME PAGE: http://faculty.chicagobooth.edu/christian.leuz/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

HOME PAGE: http://www.nber.org

European Corporate Governance Institute (ECGI)

Brussels
Belgium

HOME PAGE: http://www.ecgi.org

Center for Financial Studies (CFS) ( email )

Grüneburgplatz 1
Frankfurt am Main, 60323
Germany

University of Pennsylvania - Wharton Financial Institutions Center

3641 Locust Walk
Philadelphia, PA 19104-6218
United States

CESifo Research Network

Poschinger Str. 5
Munich, DE-81679
Germany

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