Semiotic Approach to Evaluating the Quality and Veracity of CSR Reporting

Abstract

This study employs the use of a linguistic based theory and analytical tool – Semiotics – to investigate the quality and veracity of Corporate Social Responsibility (CSR) as disclosed in annual reports. To do this, the texts of Corporate Community Involvement (CCI) narratives in the annual reports of sampled companies were analysed in order to reveal the reality of the disclosures. The study revealed that signification of reality is either doubtful or unreal for most sampled companies. Consequently, CCI disclosure could be perceived as just another management process which enables companies to signal CSR compliance. As well as the novelty of introducing semiotics into the CSR disclosure literature, this paper presents a unique CSR Semiotic Reality Model capable of guiding corporations in their CSR activities and reporting.