The Impact on Readability of the CSR Report's Preparation Guidelines and Assurance Standards [編製及確信準則對企業社會責任報告書可讀性之影響]
Journal
Journal of Accounting Review
Journal Issue
72
Pages
1-34
Date Issued
2021
Author(s)
Abstract
Readability is a measure of how easy a piece of text is for readers. Disclosing readable corporate social responsibility (CSR) reports can effectively improve corporate reputation, reduce operating risks, and lower threats of regulation. Because readers of CSR reports consist of stakeholders at all educational levels, the impact of CSR readability is far-reaching. However, little research investigates the readability of CSR reports. Additionally, Taiwan mandatorily requires some firms to disclose CSR reports following certain preparation guidelines and assurance standards. Therefore, we examine whether preparation guidelines and assurance standards affect the readability of CSR reports. As the findings show, mandatory CSR reports are more readable than the CSR reports following GRI G4. Compared to those assured following AA 1000, CSR reports, following the ISAE 3000 assurance standards that emphasize relevance and understandability, are more readable. As the results indicate, the Taiwan Stock Exchange and the Taipei Exchange made a right decision on the policy, advocateing the ISAE 3000 assurance standards, to enhance the readability of CSR reports. Copyright ? 2021 Journal of Accounting Review. All rights reserved.
SDGs
Type
journal article