@article{Harris_Cunningham_2012, title={Contrasting Two Models for Reporting Corporate Social Activities: Encouraging the Responsible and Discouraging the Irresponsible}, volume={6}, url={https://www.revistasg.uff.br/sg/article/view/V6N2A1}, DOI={10.7177/sg.2011.V6.N2.A1}, abstractNote={<div>This paper reviews the traditional incentive model of reporting corporate social responsibility (CSR),</div><div>a complementary disincentive model is introduced, and the two are compared. Both models are grounded</div><div>in the assumption that reporting increases the supply of information to inform providers of capital and,</div><div>being informed, providers respond. The traditional model assumes an incentive response, i.e. the capital is</div><div>provided and the cost of capital is beneficial to the company. By contrast, and the emerging model assumes</div><div>a disincentive response, information motivates potential debt or equity investors to withhold capital.</div><div>The emerging disincentive model is seen in the coal mining industry of the U.S. through (a) derivative lawsuits</div><div>by shareholders to obtain safety and environmental information about corporate actions, (b) banking policies</div><div>that restrict credit for mountaintop removal coal mining (MTRM), and (c) regulatory provisions e.g. Dodd-Frank</div><div>Act requiring financial statement disclosure of health and safety mining health and safety standards. Also, the</div><div>disincentive model is advanced through technology (a) in collection, aggregation, and disclosure of information</div><div>and (b) investment funds that exclude socially irresponsible companies. The emerging CSR disincentive reporting</div><div>model (a) addresses core accountability aspects reporting compliance failures with laws and regulations and</div><div>(b) incorporates beneficial accounting and auditing attributes. Implications for further research are presented.</div>}, number={2}, journal={Sistemas & Gestão}, author={Harris, Jean E. and Cunningham, Gary M.}, year={2012}, month={mar.}, pages={76–90} }