Recently, corporate social responsibility (CSR) has become a well-known issue. In this report, investors take firms’ CSR activities into consideration. In other hand, firms voluntarily disclose their CSR activities. In this regard, some organizations develop reporting frameworks to assist companies to measure and report their economic, environmental, and social performance. Global Reporting Initiative (GRI) is one of the disclosure standards, and it contains a comprehensive rule on reporting CSR related information. Firms can’t just disclose their CSR behaviors and plans, but eventually fail to carry out those plans. In other words, the disclosure quality is a very important aspect when evaluating firms’ CSR reports. This paper based on the GRI reporting guidelines develops an evaluating mechanism to examine firms’ CSR disclosure quality. Our sample contains firms in 24 countries, 28 industry sectors. Through our evaluation, this study finds that the relation between CSR disclosure quality and valuation is negative. This result indicates that CSR disclosure quality and method still have long way to improve. CSR is a multidimensional constructs, unorganized reporting would make CSR reports difficult to read. As a result, loss the communicating value with investors.

Abstract i
Contents ii
List of Table iii
List of Figure iii
Chapter 1 Introduction 1
1.1 Background 1
1.2 Motivation 3
1.3 Contribution 5
Chapter 2 Literature Review 6
2.1 Corporate social responsible concept construction 6
2.2 Corporate social responsibility disclosure 6
2.3 Corporate social responsibility performance evaluation 8
2.4 Corporate social responsibility and firm performance 10
Chapter 3 Methodology 12
3.1 Sample 12
3.2 Corporate social responsibility evaluating mechanism 14
3.3 Hypothesis 19
3.4 Research Model 20
Chapter 4 Empirical analysis 21
4.1 CSR disclosure score description 21
4.2 Financial data description 28
4.3 Result 29
Chapter 5 Conclusion 31
References 33
Appendix A --- Scoring Mechanism reference 35
Appendix B --- GRI Sustainability Reporting Guidelines 40
Appendix C --- Scoring Mechanism 45
Appendix D --- Application Level 60
Appendix E --- USA Company Score Table 61
Appendix F --- Score ratio of countries 63
Appendix G --- Environment and Social Score ratio of countries 64
Appendix H --- Score ratio of industry sectors 66
Appendix I --- Environment and Social Score ratio of industry sectors 67
Appendix J --- Score ratio of application level 69
Appendix K --- Number of application level (by country) 70
Appendix L --- Number of application level (by industry sector) 71

List of Table
Table 1 Firm number in countries 13
Table 2 Firm number in industries 13
Table 3 Firm number in each application level 15
Table 4 Financial Variables descriptive statistics 28
Table 5 Correlation matrices for the all variables 29
Table 6 Regression result 30

List of Figure
Figure 1 Average Score ratio (by counry) 21
Figure 2 Environment and Social ratio (by country) 22
Figure 3 Average Score ratio (by industry sector) 24
Figure 4 Environment and social ratio (by industry sector) 24
Figure 5 Average Score ratio (by level) 25
Figure 6 Country and Application level 27
Figure 7 Industry sector and Application level 27
Figure 8 Distribution of DM/B 28

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