The Role of Corporate Governance in the Corporate Social and Environmental Responsibility Disclosure

Erlina DIAMASTUTI1, Muafi MUAFI2, Alfiana FITRI3, Nur Elisa FAIZATY4
Received: September 30, 2020 Revised: November 22, 2020 Accepted: December 05, 2020

Abstract

The objective of this study is to examine the direct and indirect influences of government’s role, organizational commitment, and media exposure on the corporate social and environmental responsibility disclosure (CSERD) of 42 Indonesian state-owned enterprises (SOEs) with good corporate governance as the mediator. This study uses a quantitative approach with path analysis to test the hypothesis. The sample in this study was directors of 42 state-owned enterprises in Indonesia. The data was collected using a questionnaire with items assessed on a five-point Likert scale. This study finds that 1) the government’s role, organizational commitment, and media exposure have direct influences on good corporate governance and corporate social responsibility disclosure; 2) the government’s role and organizational commitment have significant influences on corporate social and environmental responsibility disclosure with the mediation of good corporate governance, indicating that government’s role and the organizational commitment are factors affecting Indonesian state-owned enterprises; and 3) the media exposure through good corporate governance mediation does not have a significant effect on corporate social and environmental responsibility disclosure. This means that media exposure is only one of the tools for CSERD, while SOEs have no obligation to disclose CSER through website or printed media.

Keywords: Corporate Governance, Corporate Social Responsibility Disclosure, Government’s Role, Organizational Commitment, Media Exposure

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