THE IMPACT OF BOARD CSR ORIENTATION AND STRATEGIC CSR ON CORPORATE CLIMATE CHANGE DISCLOSURE

Abstract

As climate change concerns intensify, corporate transparency in climate-related disclosures has become a key expectation from stakeholders. Explicitly, boards of directors play a crucial role in shaping corporate sustainability strategies, yet the extent to which their corporate social responsibility (CSR) orientation influences climate change disclosure remains underexplored. Drawing on Resource Dependency Theory, this study examines how board CSR orientation influences strategic CSR, ultimately enhancing corporate climate change disclosure. A content analysis of corporate annual and sustainability reports was conducted to assess the extent of climate change disclosure among Malaysian public listed firms. The study employed structural equation modelling to test the relationships between board CSR orientation, strategic CSR, and climate change disclosure, with strategic CSR acting as a mediator. Findings reveal that board CSR orientation positively influences strategic CSR, which, in turn, enhances corporate climate change disclosure. Furthermore, strategic CSR mediates the relationship between board CSR orientation and climate change disclosure, reinforcing its critical role in driving sustainability transparency. Accordingly, these findings offer practical insights for policymakers and corporate leaders in enhancing climate-related disclosures. This study contributes to the literature by addressing the gap in understanding the board’s role in advancing corporate climate change disclosure through strategic CSR.