Does the 2010 SEC Climate Change Disclosure Guidance Change Firms' Corporate Social Responsibility Reporting?

There is an increasing public concern about climate change. As a response to such concern in the accounting field, in 2010, the Securities and Exchange Commission (SEC) announced the SEC 2010 Commission Guidance Regarding Disclosure Related to Climate Change (SEC 2010 Guidance), the first disclosure guidance issued by either the FASB or the SEC for U.S. listed companies. However, the publication provoked criticism and debate. Opponents point out that the SEC 2010 Guidance might have an adverse impact on corporate social responsibility (CSR) reporting "by registrants fearful of liability under securities laws for the contents of such disclosures" (Shorter, 2013). This study investigates (1) the relation between firms' climate change disclosure and corporate social responsibility (CSR) disclosures and (2) the impact of the passage of SEC 2010 Guidance on corporate social responsibility (CSR) reporting. The analysis results suggest that climate change disclosures are positively associated with corporate social responsibility concerns, strengths, and overall disclosure. In addition, we do not find empirical evidence that the SEC 2010 Guidance discourages firms' overall environmental and corporate social responsibility disclosures. [ABSTRACT FROM AUTHOR]