Religiosity, secrecy culture, and corporate social responsibility report assurance

This study investigates the effects of religiosity and secrecy culture on corporate social responsibility (CSR) report assurance practices. It explores what drives companies whose reports are awarded high CSR scores to have assured reports and to select audit firm assurors. Using a 2015 through 2019 sample of companies that won the 2020 S&P Global’s Sustainability Awards in 24 countries, the results show that firms in countries with strong religious adherence are less likely to have their CSR reports assured, and if these reports are assured, then less likely to select audit firms as their assurors. Interestingly, among countries with strong religious adherence, the less likelihood of having CSR reports assured is more pronounced in countries with a high-secrecy environment. However, if firms in a high-secrecy environment have CSR reports assured, they are more likely to hire audit firms. This is likely due to the external pressure on companies to enhance the credibility of their reports and build their corporate reputation.