Analysing CSR Reporting beyond the Convention: An Industry Approach to Stakeholder Identification

Abstract: CSR practices are based on stakeholder identification to support social and environmental issues that are affected by a company's activities. This study examines corporate intervention by industry members that have direct engagement with rural participants and primary producers who are also subject to natural disasters. A Latent Dirichlet allocation model is employed to understand and measure the CSR efforts using the lens of stakeholder identification and salience theory. The findings are based on six CSR themes constituting twelve subthemes in the textile industry. Results suggest that corporate focus on activities that relate to rural development is an important effort based on the identification of stakeholders that matter the most to the industry. We also find a strong CSR orientation among companies owned by families with strong religious philosophies and pro-social inclinations. Our study provides evidence of corporate managers giving priority and attention to competing stakeholder claims based on their legitimacy, urgency, and the benefits of targeted CSR practices. Keywords: Corporate Social Responsibility, Religious Philosophy, Latent Dirichlet Allocation, Natural Disaster, Stakeholder Identification and Salience Theory, Sustainable Development, Theory of Business Ethics