This study provides an extensive critical review of the theoretical perspectives applied on\ncorporate social responsibility (CSR) disclosure literature. From a CSR standpoint we review\nand discuss, in detail, legitimacy theory, stakeholder theory, social contract theory, and\nsignalling theory to identify the situations that suit each of these perspectives. The findings\nshow that there is no universal theory applicable on corporate social responsibility disclosure\nfor all situations or societies. While legitimacy theory suggests CSR disclosures are part of a\nprocess of legitimation, stakeholder theory offers an explanation of CSR accountability to\nstakeholders. Legitimacy theory seems to be more suitable for organizations working in\ndeveloped countries, on the other hand, stakeholder theory appears to be most suitable for\norganizations working in developing countries; where a corporation can manage its\nstakeholders and the pressure to comply with existing legislation is less as compared to the\ndeveloped countries. Social contract theory is appropriate for developed/emerged economies,\nas CSR disclosure exists due to an implicit social contract between business and society,\nwhich implies some indirect obligations of business towards society. Signalling theory will\nsuit a situation where firms are competing for resources. A firm willing to demarcate from\nother firms will engage in more CSR practices. It is also important that the signal reaches the\ntarget audience by reporting on CSR.
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