THE RELATIONSHIP OF COMPANY DESCRIPTIVES AND CSR DISCLOSURE OF PUBLICLY-LISTED MANUFACTURING COMPANIES IN INDONESIA

Abstract

ABSTRACT The manufacturing industry is one of the major industries that have been attentive in issues on corporate social responsibility (CSR) and sustainable development. This research was designed to examine the relationship of company descriptives and CSR disclosure of publicly-listed manufacturing companies in Indonesia. Company descriptives was measured by company size, board of commissioner, company profitability, and financial leverage. CSR disclosure was measured using 50 CSR items from the ISO 26000:2010 Guidance on Social Responsibility. The population is 131 publicly-listed manufacturing companies listed at Indonesia Stock Exchange (IDX). However, only 34 publicly-listed manufacturing companies who consistently published annual reports and CSR disclosure for the years of 2008 to 2010 were used as the sample of this research. The technique for examining the hypotheses was multiple regression analysis. The results indicated that company descriptives have simultaneous significant effects on CSR disclosure. However, individually-tested, only company size has a significant effect on CSR disclosure. Moreover, there are only a few publiclylisted manufacturing companies in Indonesia that disclose CSR information through its annual reports.