Social responsibility disclosure: Do green accounting, CEO power, board gender, and nationality diversity matter?

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Abstract

Indonesia’s Environmental, Social and Governance Index (ESG Index) score and ranking released by the Global Risk Profile (2020) indicate that the social responsibility disclosure of companies in Indonesia is still very minimum. This study aims to analyze the effects of green accounting, Chief Executive Officer (CEO) power, gender diversity, and nationality diversity on social responsibility disclosure. This study uses ISO 26000 to assess social responsibility disclosure to measure and report social responsibility policies and practices to provide new perspectives for business people. This study uses a quantitative approach and panel data regression on 102 financial sector companies listed on the Indonesia Stock Exchange (IDX) for the 2018–2020 period. The analysis technique uses multiple linear regression analysis with statistical tools SPSS 20. The results show that green accounting, CEO power, and gender diversity of the board of commissioners do not affect social responsibility disclosure. In contrast, the national diversity of the board of commissioners has a significant negative effect on social responsibility disclosure. Human rights and fair operating practices are subjects that companies need to highlight to increase social responsibility disclosure while increasing transparency of the allocation of costs that companies spend on social and environmental sectors.

Keywords: Social Responsibility Disclosure, Green Accounting, CEO Power, Gender Diversity, Nationality Diversity

Authors’ individual contribution: Conceptualization — T.A.; Methodology — T.A. and A.P.; Software — A.P.; Validation — T.A.; Formal Analysis — T.A. and A.P.; Resources — T.A. and A.P.; Data Curation — A.P.; Writing — Original Draft — T.A. and A.P.; Writing — Review & Editing — T.A.; Visualization — T.A. and A.P.; Supervision — T.A.; Project Administration — T.A. and A.P.

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

JEL Classification: J16, G34, M14

Received: 02.05.2022
Accepted: 07.10.2022
Published online: 11.10.2022

How to cite this paper: Andrian, T., & Pangestu, A. (2022). Social responsibility disclosure: Do green accounting, CEO power, board gender, and nationality diversity matter? Corporate Governance and Organizational Behavior Review, 6(4), 110–121. https://doi.org/10.22495/cgobrv6i4p10