The Journal of Asian Finance, Economics and Business

Korea Distribution Science Association (한국유통과학회)
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Determinants of Socio-Ecological Responsibility Disclosures in Indonesia

  • ANDAJANI, Andajani (Department of Accounting, Faculty of Economics and Business, Universitas Airlangga Surabaya) ;
  • AGUSTIA, Dian (Department of Accounting, Faculty of Economics and Business, Universitas Airlangga)
  • Received : 2020.11.05
  • Accepted : 2021.01.08
  • Published : 2021.02.28
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Abstract

This study aimed to examine the effect of corporate characteristics, including the industrial sector and scale of operation, financial leverage, profitability, operating period, and social reputation, on socio-ecological responsibility based on Global Reporting Initiative (GRI) standards. The study was conducted in the Indonesian context. A total of 90 public companies listed on the Indonesia Stock Exchange were selected as samples, with an observation period of 10 years. A univariate regression analysis was applied to test the hypotheses. The results showed that the industrial sector, scale of operation, financial leverage, profitability, operating period, and social reputation of the corporate had a positive effect on socio-ecological responsibility. This study also obtained evidence that there were differences in the level of socio-ecological responsibility among the industrial sectors. The higher the relationship between the industrial sector and the possibility of the emergence of social and environmental issues, the higher the level of corporate socio-ecological responsibility. From a policy perspective, the implication of the results of this study was that it could be used as a consideration by the authorities or regulators in Indonesia, particularly the Financial Services Authority (OJK), in determining specific indicators of socio-ecological responsibility that must be carried out by corporates.

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