An Inherent Ambiguity of CSR Disclosure Concept: Evidence from IPO Prospectuses of Indonesian Listed Companies

Zuraida Zuraida, Sugianto Sugianto
2019 Proceedings of the 1st Aceh Global Conference (AGC 2018)   unpublished
The purposes of this study are to explore the conceptual definitions of Corporate Social Responsibility (CSR), review the common practice of CSR disclosure and examine whether Indonesian companies have fully adopted the correct disclosure practice of CSR in their Initial Public Offering (IPO) prospectuses. 162 prospectuses, which are all prospectuses issued from 2012 to 2018, were selected as sample of the study. The study period was chosen as the International Financial Reporting Standard
more » ... ) was first implemented in Indonesia in 2012. Research data from the prospectuses was collected using content analysis employing theme-based coding. Descriptive statistics and multiple regression analysis were among the tests performed. Research findings are: Existing researchers show diverse definition of CSR but they seem to agree that CSR encompasses aspects such as Environmental, Social and Governance factors as suggested by the Global Reporting Initiative (GRI), thus, recent CSR disclosure practices have adopted the GRI guidelines. The disclosure practices adopted by Indonesian companies, therefore, are still ambiguous, not only they do not follow the GRI guidelines but also they do not have any guidelines of CRS factors to follow, consequently the level of disclosure and the number of disclosed factors varies greatly from one company to another. Among the CRS factors, which are currently disclosed by the company, they are positively associated with company size and profit. These results are robust to alternative specifications.
doi:10.2991/agc-18.2019.66 fatcat:kdrvzwis2jd2lnnrkkmaxuq5pe