Stakeholder pressure on the level of corporate social responsibility disclosure: Evidence from Vietnam

This study investigates the differences in stakeholder pressure that affect corporate social responsibility (CSR) disclosure among companies listed on the Vietnamese stock market, based on Ullman's theoretical model (1985). The factors examined include government pressure, creditor pressure, employee pressure, and audit pressure, specifically in companies with varying financial performance and CSR strategies. Data were collected from the financial statements of 42 manufacturing and non-manufacturing companies listed on the Vietnamese stock market, resulting in a total of 732 observations spanning from 2006 to 2023. The analysis was conducted using Stata 17 software, employing three models: the fixed effects model (FEM), the random effects model (REM), and the ordinary least squares regression method (OLS) to determine the optimal model. The study's results indicate that government pressure positively influences CSR disclosure, with firms subject to regulatory requirements tending to be more transparent in sharing CSR information. Additionally, firm size (measured by the number of employees) was found to be a crucial factor; larger firms tend to disclose more information than smaller ones. The findings also reveal that proactive CSR strategies and strong financial performance positively affect CSR disclosure. Notably, the corporate sector does not appear to moderate the influence of regulatory requirements, debt ratios, or audits on CSR disclosure. However, the study discovered that in manufacturing firms, employee pressure has a more significant impact on CSR disclosure than in non-manufacturing firms. The findings of this study offer recommendations for Vietnamese policymakers and businesses to enhance Corporate Social Responsibility disclosure.