CSR reporting quality and governance mechanisms: Evidence from Moroccan listed banks

Abstract

CSR reporting is growing among Moroccan listed companies. However, the quality of disclosed CSR information remains largely understudied in the national academic literature. This paper examines the quality of CSR reporting of Moroccan banks listed on the Casablanca Stock Exchange over the period 2020-2023 and explores the role of governance mechanisms in explaining the observed differences, using stakeholder theory as a theoretical framework. The study relies on a longitudinal content analysis of 24 CSR reports, using the scoring framework developed by Badia and Bracci (2020) based on four GRI principles: clarity and accuracy, stakeholder engagement, comparability, and reliability. Four governance mechanisms are examined: CSR committee, board size, external assurance, and gender diversity. The findings show an overall heterogeneous and insufficient reporting quality. Clarity is the best-performing dimension, while comparability and stakeholder engagement remain weak, and reliability is the most concerning dimension due to the limited use of external assurance. Among the governance mechanisms examined, only external assurance appears to be linked to better CSR reporting quality. This research highlights the need to strengthen regulatory requirements and encourage Moroccan banks to adopt independent assurance processes to improve the credibility of their disclosed CSR information.