The Effect of Diversity of Board of Directors and Environmental Performance on Corporate Social Responsibility (Empirical Study of Companies Registered at the Ministry of Environment in 2020)

Authors

  • Dhea Vania Dominique Pijoh Universitas Muhammadiyah Purwokerto
  • Arbi Arsi Ave Noor Universitas Muhammadiyah Purwokerto
  • Isfi Arininiswah Muawanah Universitas Muhammadiyah Purwokerto
  • Aditya Prasetyanto Universitas Muhammadiyah Purwokerto
  • Bima Cinintya Pratama Universitas Muhammadiyah Purwokerto

DOI:

https://doi.org/10.30595/pssh.v7i.469

Keywords:

Diversity of Directors, Environmental Performance, Corporate Social Responsibility

Abstract

The purpose of this study was to determine whether there is a relationship between the diversity of the board of directors and environmental performance in corporate social responsibility. For this study, the population consisted of manufacturing companies traded on the Indonesia Stock Exchange in 2020. Purposive sampling was the method used to collect data so that 71 of the total sample of companies met the requirements. With the help of the SPSS application, descriptive statistical analysis methods were used in the data analysis process. Based on the findings of this investigation, the Corporate Social Responsibility factors are known as the foreign Director, tenure, gender, and environmental performance do not interact with each other at all.

References

Ardiyanto, MD, & Anindito, T. (2012). The Effect of Environmental Performance on Disclosure of Corporate Social Responsibility (CSR) and Financial Performance of Chemical and Mining Companies Listed on the Indonesia Stock Exchange (Empirical Study of Mining Companies Listed on BEI Diponegoro Accounting Journal , 2 (1), 1 -12.

Gohanna, S., Damanik, M., & Dewayanto, T. (2021). Analysis of the Effect of Diversity of the Board of Commissioners on Disclosure of Corporate Social Responsibility. Diponegoro Journal of Accounting , 10 (1), 1–14.

Hadya, R., & Susanto, R. (2018). Relationship Model of Gender Diversity, Education and Nationality of the Board of Commissioners on Corporate Social Responsibility Disclosure. Benefita Journal , 3 (2), 149. https://doi.org/10.22216/jbe.v3i2.3432

Ningrum, AP, & Prihatiningtias, YW (2015). The Influence of Corporate Governance on Disclosure of Sustainability Reports (Study on Companies Listed in the Calculation of the SRI-KEHATI Stock Index 2010-2014). Journal of Information Chemistry and Modeling , 4 (1), 1-17.

Rao, K., & Tilt, C. (2016). Board Composition and Corporate Social Responsibility: Diversity Roles, Gender, Strategy and Decision Making. Journal of Business Ethics , 138 (2), 327–347. https://doi.org/10.1007/s10551-015-2613-5

Setiawan, D., Hapsari, RT, & Wibawa, A. (2018). The Impact of the Characteristics of the Board of Directors on the Disclosure of Corporate Social Responsibility in Mining Companies in Indonesia. Mix: Scientific Journal of Management , 8 (1), 1. https://doi.org/10.22441/mix.2018.v8i1.001

Sri, S., & Nuryazid. (2019). "The Influence of Foreign Directors, Foreign Commissioners, and Foreign Ownership on Company Performance (Empirical Study on Manufacturing Companies Listed on the Indonesia Stock Exchange for the 2014-2017 Period)." 2 , 1–11.

Triyuwono, E. (2018). Contract process, agency theory, and . 1–14.

Ardiyanto, Moh. Didik, and Tito Anindito. 2012. "The Influence of Environmental Performance on Disclosure of Corporate Social Responsibility (CSR) and Financial Performance of Chemical and Mining Companies Listed on the Indonesia Stock Exchange (Empirical Study on Mining Companies Listed on the IDX in." Diponegoro Accounting Journal 2 (1): 1-12. http://ejournal-s1.undip.ac.id/index.php/accounting.

Rao, Kathyayini, and Carol Tilt. 2016. "Board Composition and Corporate Social Responsibility: The Role of Diversity, Gender, Strategy and Decision Making." Journal of Business Ethics 138 (2): 327–47. https://doi.org/10.1007/s10551-015-2613-5.

Sri, Saragih, and Nuryazid. 2019. "'The Influence of Foreign Directors, Foreign Commissioners, and Foreign Ownership on Company Performance (Empirical Study on Manufacturing Companies Listed on the IDX 2014-2017)'" 2:1–11.

Sukasih, Ana and Eko Sugiyanto. 2017. "The Influence of GCG Structure and Environmental Performance on CSR Disclosure." Indonesian Accounting and Finance Research 2 (2): 121–31.

Yanti, NKAG, & Budiasih, IGAN (2016). Effect of Profitability, Leverage and Company Size on Corporate Social Responsibility Disclosure. Udayana University Accounting E-Journal, 17(3), 1752-1779.

Connelly, BL, Certo, ST, Ireland, RD, & Reutzel, CR (2011). Signaling theory: A review and assessment. Journal of management, 37(1), 39-67.

Hsu, SHY, & Mykytyn, PP (2005). Intellectual capital. Encyclopedia of Knowledge Management , 13(1), 274–280. https://doi.org/10.4018/978-1-59140-573-3.ch036

Vance, CM (2012). Company resourcing based view. Journal of Management Research, 21(1), 124. https://doi.org/10.1177/1056492611436225

Shoimah, IL, & Aryani, YA (2019). Disclosure of Slack Resources, Family Ownership, and Corporate Social Responsibility. Journal of Accounting and Financial Review, 9(2), 192. https://doi.org/10.22219/jrak.v9i2.8629

García-Meca, E., García-Sánchez, IM, & Martínez-Ferrero, J. (2015). Board diversity and its effect on bank performance: An international analysis. Journal of Banking & Finance , 53 , 202-214.

Hamdani, Y., & Hatane, SE (2017). The Influence of Women on Directors on Company Values Through Company Performance as an Intervening Variable. Business Accounting Review , 5 (1), 121-132.

Ibrahim, AH, & Hanefah, MM (2016). Board diversity and corporate social responsibility in Jordan. Journal of Financial Reporting and Accounting .

Shaukat, A., Qiu, Y., & Trojanowski, G. (2016). Board attributes, corporate social responsibility strategy, and corporate environmental and social performance. Journal of Business Ethics , 135 (3), 569-585.

Suratno, IB, Darsono, D., & Mutmainah, S. (2007). The Effect of Environmental Performance on Environmental Disclosure and Economic Performance (Empirical Study on Manufacturing Companies listed on the JSE Period 2001-2004). Indonesian Journal of Accounting Research , 10 (2).

Barka, HB, & Dardour, A. (2015). Investigate the relationship between director profile, board interlock and corporate social responsibility. Management Decision .

Muttakin, MB, Khan, A., & Subramaniam, N. (2015). Corporate characteristics, board diversity and corporate social responsibility: evidence from Bangladesh. Pacific accounting review .

Anindito, T., & Ardiyanto, MD (2013). The Effect of Environmental Performance on Disclosure of Corporate Social Responsibility (CSR) and Financial Performance of Chemical and Mining Companies Listed on the Indonesia Stock Exchange (Empirical Study on Mining Companies Listed on the Stock Exchange in Diponegoro Journal of Accounting , 329-340.

KNKG, K. (2006). General Guidelines for Good Corporate Governance in Indonesia. Jakarta. Retrieved 23 March 2020.

Haniffa, RM, & Cooke, TE (2005). Impact of culture and governance on corporate social reporting. Journal of accounting and public policy , 24 (5), 391-430.

Sayekti, Y., & Wondabio, LS (2007). The effect of CSR disclosure on the earnings response coefficient. National Symposium on Accounting X , 26 .

Ghozali, I. (2006). Multivariate analysis application with SPSS program.

Ararat, M., Aksu, MH, & Tansel Cetin, A. (2010). Impact of board diversity on board monitoring intensity and firm performance: evidence from the Istanbul Stock Exchange. Available at SSRN 1572283 .

Rahindayati, NM, Ramantha, IW, & Rasmini, NK (2015). The Effect of Management Diversity on the Disclosure of Corporate Social Responsibility of Financial Sector Companies. E-Journal of Economics and Business, Udayana University , 4 (5), 312-330.

Pajaria, Y., Meutia, I., & Widiyanti, M. (2016). The Effect of Diversity of the Board of Directors and Commissioners, Company Size, and Profitability on Disclosure of Corporate Social Responsibility of Manufacturing Sector Companies Listed on the Indonesia Stock Exchange. Accountability , 10 (2), 177-200.

Thomas, AS, & Simerly, RL (1994). Chief executive officer and corporate social performance: An interdisciplinary examination. Journal of Business Ethics , 13 (12), 959-968.

Nalikka, A. (2009). Impact of gender diversity on voluntary disclosure in annual reports. Accounting & Taxation , 1 (1), 101-113.

Downloads

Published

2022-08-24

How to Cite

Pijoh, D. V. D., Noor, A. A. A., Muawanah, I. A., Prasetyanto, A., & Pratama, B. C. (2022). The Effect of Diversity of Board of Directors and Environmental Performance on Corporate Social Responsibility (Empirical Study of Companies Registered at the Ministry of Environment in 2020). Proceedings Series on Social Sciences & Humanities, 7, 32–41. https://doi.org/10.30595/pssh.v7i.469