Exploring the Faithful Representation of Voluntary and Mandatory Disclosures: France vs Canada

Corporate Social Responsibility (CSR) reporting has become increasingly important, with 96% of the world’s 250 largest corporations (G250) now publishing CSR-related information (KPMG, 2020). The number of CSR reporting tools available to corporations has expanded dramatically, from 60 in 2006 to over 600 in 2020 (GRI et al., 2020). This study explores environmental disclosures within both mandatory and voluntary reporting frameworks, with a particular focus on addressing stakeholder concerns.
Previous research highlights the importance of environmental disclosures for investors (Berthelot et al., 2003). However, some view these disclosures as merely symbolic (Rodrigue et al., 2013; Ferguson et al., 2016). This exploratory study compares the quality of environmental disclosures in Canada and France, looking at both mandatory and voluntary frameworks. Unlike the European Union, where CSR disclosures are mandatory, Canada adopts a voluntary approach. By conducting an in-depth analysis of a small sample of corporations in environmentally sensitive industries listed on French and Canadian stock exchanges, we assess the faithfulness of environmental disclosures.
The originality of this study comes from its detailed analysis of the content and presentation of environmental disclosures, including yearly comparisons, segmented data, and targets. Additionally, it examines graphical depictions in corporate reports, often excluded from content analyses. This study highlights the need for mandatory reporting because of the weaknesses found in voluntary reporting…