Disclosures of corporate social responsibility by listed companies continue to be strengthened.

　　On September 18, at the 4th (2015) “Ecological Civilization: Alashan Dialogue,” the China Association of Listed Companies and the Securities Times jointly released the “Research on Social Responsibility Information Disclosure by Chinese A-Share Listed Companies (2015)” (abstract). The study shows that as of April 30, a total of 711 social responsibility reports were published by 702 A-share listed companies, representing a 3.64% increase from the 686 reports issued during the same period last year.

　　The disclosure of corporate social responsibility information by listed companies refers to the process through which listed companies, using various forms such as annual CSR reports, environmental reports, ad-hoc announcements, and daily updates, disclose information related to their business operations, social impact, and environmental effects to their stakeholders via multiple channels including stock exchange websites, mainstream media, the company’s official website, and its official Weibo account.

　　Three years ago, the research group established by the China Association of Listed Companies and the Securities Times created the “China Listed Companies’ Social Responsibility Information Disclosure Evaluation Model.” This model comprehensively assesses the level of social responsibility information disclosure by listed companies from two perspectives: their social responsibility reports and their official websites. It aims to share with all sectors of society the achievements made in the development of social responsibility by Chinese listed companies, while also providing data support for regulatory authorities, listed companies, financial institutions, and other market participants in the capital market to better understand the current state of corporate social responsibility in China.

　　This year’s research shows that, as of April 30, 702 A-share listed companies had released a total of 711 social responsibility reports, representing a 3.64% increase from the 686 reports issued during the same period last year. The level of social responsibility information disclosure by A-share listed companies has been steadily improving, and several “first-time” phenomena have emerged. Yao Feng, Party Secretary and Executive Vice President of the China Association of Listed Companies, stated that the number of social responsibility reports issued by A-share listed companies has been increasing year by year, with continuously improving report quality and increasingly diversified reporting approaches.

　　Over 300 companies have achieved a B-level or higher in corporate social responsibility information disclosure.

　　The study shows that this year, 305 companies achieved a comprehensive score above Grade B (60 points or higher), accounting for 43% of the total number of reports published. Among these, 27 companies reached Grade A (80 points or higher), representing a significant improvement compared to the same period last year.

　　The top ten companies, in order, are: Shenzhen Tianma A, Tai Steel Stainless, CIMC Group, Jiangling Motors, Sanyuan Shares, China Tianying, Siliconbao Technology, Qizheng Tibetan Medicine, Jinzhengda, and China Construction.

　　Previous studies have shown that, driven by the Shanghai Stock Exchange, the number of companies in the Shanghai market subject to mandatory disclosure requirements is greater than in the Shenzhen market. Moreover, listed companies in Shenzhen are generally smaller in scale and have limited resources for engaging in social responsibility and disclosing related information. As a result, the level of social responsibility information disclosure among listed companies in the Shanghai market tends to be superior to that in the Shenzhen market.

　　However, looking at this year alone, among companies listed on the Shanghai Stock Exchange’s main board, 158 have achieved a B-level score (60 points or above), accounting for 37.98%; on the Shenzhen Stock Exchange’s main board, 80 companies have reached this level, representing 61.07%; on the SME board, 56 companies have made the cut, accounting for 44.8%; and on the ChiNext board, 11 companies have met the threshold, comprising 34.38%. It is evident that the number of main-board listed companies still far outpaces other boards in absolute terms—particularly on the Shenzhen Stock Exchange’s main board, where nearly 60% of companies have now surpassed the passing mark. Moreover, the number of companies from the SME and ChiNext boards reaching this level has also significantly increased compared to previous years, with the number of such companies multiplying and demonstrating a rapid pace of catching up.

　　From the perspective of proportion, the level of social responsibility information disclosure on the SME Board and the ChiNext Board has already reached a level comparable to that of main-board listed companies. In particular, this year, companies from the ChiNext Board have begun appearing among those rated at Level A (80 points or above).

　　The water conservancy, environmental, and public facilities management industry ranks first in reported scores.

　　The study shows that 93.48% of listed companies in the financial sector publish social responsibility reports, ranking first among all industries. Following the financial sector, industries with relatively high proportions of companies publishing such reports include health and social work, transportation, warehousing, and postal services, as well as mining—rates for these sectors reached 50.00%, 45.12%, and 44.59%, respectively, all showing varying degrees of increase compared to the previous year. In addition, a listed company in the scientific research and technical services sector has issued its very first social responsibility report.

　　Looking at the average scores reported, in 2015, among listed companies across various sectors, only two industries had average scores exceeding 60 points. The water conservancy, environmental, and public facilities management industry ranked first with a score of 67.69, surpassing the financial industry’s score of 60.24. There was significant divergence in the level of social responsibility reporting among listed companies within this industry.

　　However, according to the comprehensive evaluation results of social responsibility information disclosure, the financial industry, wholesale and retail trade, construction, and manufacturing remain leaders.

　　Yunnan, Guangxi, and Guangdong rank among the top three in average scores for listed companies.

　　The study shows that among all provinces, only Yunnan, Guangxi, and Guangdong achieved average scores of over 60 points in their listed companies’ corporate social responsibility reports, with scores of 62.72, 62.42, and 61.44 respectively. However, when looking at industries as a whole, the differences among provinces are not particularly pronounced; the average scores of reports from all provinces cluster between 40 and 60 points. Notably, provinces with fewer reported instances tend to have higher average scores (such as Yunnan). The primary reason for this is that in these provinces, the companies issuing reports are generally larger and better resourced, whereas smaller companies have not yet issued such reports. On the other hand, provinces with a greater number of reported instances, despite having some high-scoring reports, also include a certain number of lower-scoring reports, which ultimately drag down the overall average score.

　　In 2015, the three provinces with the highest proportions of listed companies issuing social responsibility reports were Fujian, Henan, and Yunnan, reaching 62.77%, 49.25%, and 46.67% respectively. However, these proportions all declined compared to the previous year. Notably, Hainan saw a significant increase in the proportion of its listed companies issuing social responsibility reports, rising to 25.93%, whereas last year the province ranked at the bottom.

　　Finally, it is worth noting that this year’s evaluation of corporate social responsibility (CSR) information disclosure has, for the first time, seen companies achieving perfect scores as well as companies from the ChiNext board attaining A-level ratings. According to the evaluation framework and scoring methodology, Shenzhen Tianma A listed company originally scored 93 points on its CSR report. Since the company voluntarily published its CSR report, its adjusted score reached a perfect 100 points. Meanwhile, Silbao Technology, a company listed on the ChiNext board, achieved an A-level rating with a score of 86.9 points.

　　Reporting media: Shanghai Securities Journal

　　Report link: http://money.163.com/15/0921/01/B40IBLIH00253B0H.html