Understanding The Relationship Between Social Accounting and Sustainable Corporate Social Responsibility: An Exploration of Mediation Effects

Abstract

Purpose: In this study, we have examined the relationship between social accounting and sustainable corporate social responsibility. Furthermore, we have examined two mediation effects on the relationship between social accounting and sustainable corporate social responsibility and found out the impact of mediators on this relationship. Methodology: We have conducted this study in five districts of Odisha, a state in India, with 418 respondents and a response rate of 83.6%. To collect information from the respondents, we have used convenience sampling techniques. Questionnaires are prepared in English and translated to regional languages during data collection. Data was collected from 64 respondents for the pilot study. Psychological separation and Harman’s single-factor test were conducted to avoid common method bias. For the validation of the purposed model, we have performed exploratory factor analysis and confirmatory factor analysis. Results and Findings: The current study's findings indicate that social accounting has a positive and significant impact on sustainable corporate social responsibility. The empirical results of this study also indicate that inclusive growth and creating shared value partially mediate the relationship between social accounting and sustainable corporate social responsibility. Implications: In this study, we have analysed the mediation relationship between social accounting and sustainable corporate social responsibility, probably for the first time. The established model framework is helpful for policymakers and corporations in reframing CSR implementation strategies for providing long-term sustainable solutions to societal problems. Originality: This study is one of its kind and considers all four factors in a single structural model, such as social accounting, inclusive growth, creating shared value, and sustainable corporate social responsibility. The current study can work as a steppingstone for upgrading the delivery mechanism for corporate social responsibility programs, which can solve the fundamental problems faced in society more effectively