The effect of stakeholder pressure and corporate governance on the sustainability report quality

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10 Citations (Scopus)

Abstract

Purpose – The purpose of this study is to examine the effects of stakeholder pressure and corporate governance on the quality of sustainability report. This study uses environment, employee, consumer and shareholder as stakeholders, while board of commissioner effectiveness and family ownership are used as corporate governance components. Design/methodology/approach – This research uses multiple regression method with total observations of 123 sustainability reports of listed firms on Indonesia Stock Exchange in 2010-2014. Findings – The result shows that companies which get pressure from environment and consumer have higher quality of sustainability report than other firms. Pressure from employee positively affects the quality of sustainability report. Meanwhile, pressure from shareholders has no effect on the quality of sustainability report. Board of commissioner effectiveness positively affects the quality of sustainability report, and family ownership has no effect on the quality of sustainability report. Originality/value – This research reveals how various types of stakeholders and corporate governance in Indonesia react to corporate social responsibility and thus influence the quality of sustainability report, which has not been discussed by previous studies.

Original languageEnglish
Pages (from-to)233-249
Number of pages17
JournalInternational Journal of Ethics and Systems
Volume34
Issue number2
DOIs
Publication statusPublished - 1 Jan 2018

Keywords

  • Board of commissioner effectiveness
  • Corporate governance
  • Family ownership
  • Stakeholder pressure
  • Sustainability report quality

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