Research On Corporate Social Responsibility Disclosure Based On System Dynamics

Recently, Corporate Social Responsibility(CSR) disclosure has become a common problem confronted by many enterprises, as well as one of the academic issues with higher attention. The governments of Australia, Canada, England, France, the United States, China and other countries as well, have given high attention to CSR disclosure and through carry out related policy and legislation. Under the attention of all social sectors, CSR disclosure shows a well trend of increase. The amount of CSR reports increased fast, but its quality is generally at a low level, this problem remains notable. Researchers have conducted many studies to further understand the process of CSR disclosure, which can identify the main factors which influenced CSR disclosure, further, promoting the advance of CSR disclosure.Many existing studies have been based on empirical data, mainly involving economy avoidance, risk avoidance, external pressure and internal governance, which have made great contributions to the understanding of CSR disclosure. However, there is still some research space to be followed up and complemented. Firstly, the existing empirical studies can only answer questions that one affects the other, but can not answer how to affect each other. Secondly, there are few studies based on the process of information disclosure, lacking of systematic exploration. Also, present studies scarcely considering the receiving and understanding ability of stakeholders on the CSR information. From the perspective of the demand and supply of information, based on benefit-cost and the information dissemination system, this paper studies the CSR disclosure and its efficiency, and also analyzes the influencing factors and role of CSR disclosure system by constructing the conceptual model and system dynamics model, and accordingly, some suggestions are put forward to promote the improvement of CSR information disclosure.Followings are the main conclusions of this study, firstly, three prerequisites are needed to enable enterprises to carry out the disclosure of CSR information, the asymmetric of information, the needs of CSR information and higher expected revenue than expected costs. Secondly, the information acquisition coefficient of the enterprises will restrict the full play of its disclosure ability if the expected CSR disclosure level is greater than the stock of information. Besides, it will be more favorable to improve the CSR disclosure if the shielding factor and forgetting factor are small, while the other coefficients are big, but the marginal utility of the coefficient improvement is decreasing, so it is important to grasp the "degree" of coefficient improvement. Thirdly, the level of CSR disclosure of enterprises will always meet the expectations of the stakeholders on condition that shielding coefficient and forgetting factor are less than 1, while the other coefficients are greater than 0, but there will be a big difference in time. Besides, only if all the coefficients are improved can the CSR information disclosure system be improved, the improvement of the single coefficient is not obvious to the system. Based on the above conclusions, the present study is divided into three levels, incentive level, control level, security level. In addition, this paper also puts forward the recommendations to promote the improvement of CSR information disclosure to provide some references for practitioners.