Revisiting the impact of corporate governance mechanisms and corporate social responsibility disclosure

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Abstract

Many companies are conducting business activities on a large scale and at a high speed, while neglecting social sustainability and ongoing issues. In Indonesia, companies possess an awareness of the economic components of corporate social responsibility (CSR); however, they exhibit a lesser degree of awareness regarding the environmental and social aspects. Despite Indonesia’s relatively low CSR reporting level, a consistent annual increase in CSR disclosure has been noted. Corporate governance (CG) can affect how broadly a company will disclose CSR. This study investigates the effect of CG mechanisms on CSR disclosure in Indonesian Sharia-compliant companies. The independent variables include the board of directors’ (BOD) characteristics, audit committee (AC) attributes, and ownership types. Using multiple linear regression analysis on 415 observations, the study reveals that BOD meeting frequency, BOD size, and managerial ownership positively correlate with CSR disclosure, while AC size and foreign ownership show a negative association. The findings contribute to the understanding of CG’s role in CSR transparency, especially in countries with increasing Sharia-compliant businesses. These insights can help such firms strengthen their governance practices and improve CSR reporting.

Keywords: Corporate Governance, CSR, Disclosure, Companies, Board of Directors

Authors’ individual contribution: Conceptualization — P.N.; Methodology — P.N. and H.R.; Formal Analysis — P.N. and H.R.; Investigation — H.R.; Writing — Original Draft — P.N. and H.R.; Writing — Review & Editing — P.N. and H.R.; Visualization — P.N. and H.R.; Supervision — P.N.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: L60, M14, M40, M41, M48

Received: 27.12.2024
Revised: 31.03.2025; 03.07.2025; 29.10.2025
Accepted: 21.11.2025
Published online: 24.11.2025

How to cite this paper: Nugraheni, P., & Rahmadani, H. (2025). Revisiting the impact of corporate governance mechanisms and corporate social responsibility disclosure. Corporate Law & Governance Review, 7(4), 8–16. https://doi.org/10.22495/clgrv7i4p1