Differentiate mandatory disclosure from voluntary CSR disclosure.

• A. Mandatory disclosure is limited to financial data; voluntary to social impact.
• B. Mandatory disclosure is required by law or regulation; voluntary disclosure is self-initiated to communicate broader performance or impacts.
• C. Mandatory disclosure is optional; voluntary disclosure is required.
• D. Mandatory and voluntary disclosures are identical.

Answer: (B)

The main idea is that mandatory disclosure is information a company is required to publish by law or regulation, while voluntary CSR disclosure is information a company chooses to share beyond legal requirements to communicate broader performance or impacts. In practice, mandatory disclosures often cover financial data and specific regulated non-financial items like risk, governance, or environmental liabilities, depending on the jurisdiction. Voluntary CSR disclosures go beyond these requirements and aim to signal social and environmental performance, governance practices, and long-term value to stakeholders, often using frameworks like GRI, SASB, or TCFD. That’s why the best description is that mandatory disclosures are legally required, whereas voluntary CSR disclosures are self-initiated to communicate broader performance or impacts.