Exploring corporate social responsibility of accounting firms in China: interview evidence

This working paper attempts to: (i) explore current corporate social responsibility (CSR) practice in accounting firms in China; (ii) identify motivations for the firms’ engagement in CSR work; and (iii) discuss the role of the accounting profession in developing and promoting CSR in this developing country. The on-going field research included semi-structured interviews conducted with four partners and senior managers, who were either employed full-time on some CSR activity in the Big Four or undertook the leading role in relation to CSR. The interview questions covered a range of issues concerning CSR practice of accounting firms describing: CSR strategy and activities, staff backgrounds, recruitment, market competition, performance measurement, and/or CSR service provided. Research results indicated that differences existed among accounting firms with regard to their CSR policy, reporting practice, governance structure and CSR service lines, with the Big Four leading the pack and the Chinese domestic firms
lagging behind. Three most cited motives for accounting firms’ engagement in CSR were labelled: (i) moral considerations; (ii) staff engagement; and (iii) external expectations. The interviewees also identified that at present CSR service lines were not as profitable as other service lines operated within the Big Four. Two recommendations are made to the accounting profession in
promoting and developing CSR work in China: (i) use accounting core skills to broaden the scope of CSR work in China; and (ii) help clients enhance their awareness of CSR and its implications for their business development. Another eight interviews will be conducted to complete this paper.