In conclusion, this study provides insights on how state‐led guidelines on CSR coupled with corporate governance mechanisms appear to play a critical role in firm disclosure practices within the developing economy context. Scherer and Palazzo (2011), in their review of the CSR literature, contend that a new form of politicized CSR is emerging together with globalization. They propose that: […] political solutions for societal challenges are no longer limited to the political system but have become embedded in decentralized processes that include non‐state actors such as NGOs and corporations (Scherer and Palazzo, 2011, p. 922). As such, the quality of firm disclosures becomes increasingly critical for how well the various stakeholders are informed which ultimately affects their potential to act on CSR issues.