Investigating the Effect of Environmental Sensitivity on the Relationship between Corporate Social Responsibility Disclosure and Competitive Advantage

Companies increasingly promote their status among competitors by taking some actions on environmental protection and improving it and take competitive advantage. In this respect, this study investigated the effect of environmental sensitivity for the relationship between corporate social responsibility disclosure and competitive advantage of the companies listed on the Tehran Stock Exchange.

This research is applied in terms of its purpose and descriptive correlational in terms of the method. The statistical population included 147 companies listed on the Tehran Stock Exchange over 2011-2016. The corporate social responsibility was measured using content analysis based on information checklist and coding it and the competitive advantage was determined by intellectual capital index. To test the research hypotheses multiple regression and ordinary least squares (OLS) were used.

According to the results, competitive advantage would decrease because of increasing information disclosure of corporate social responsibility. Also environmental sensitivity impacts on the relationship between corporate social responsibility disclosure and competitive advantage.

To serve the society interests regarding environment companies which are more sensitive about environmental issues should be more active in order to perform their role appropriately. Moreover, these companies need to disclose their measures taken on environment properly.