The Role of Female Directors and CSR Committees on Corporate Social Responsibility Disclosure
Abstract
This study investigates the relationship between female directors and Corporate Social Responsibility (CSR) disclosure in Indonesian listed companies on the Indonesia Stock Exchange (IDX). Utilizing a sample of 45 companies with sustainability and financial reports from 2017 to 2021, the research employs the Global Reporting Initiative (GRI) Index with 94 items to measure CSR disclosure. Findings reveal a significant negative impact of female directors on CSR when their number falls below critical mass, suggesting potential tokenism. Moreover, Female Directors with Accounting Expertise (FDAE) are found to be token figures, contributing insignificantly to CSR. The study proposes the establishment of CSR Committees as a more effective means to leverage women's involvement in CSR. The research underscores the need for regulatory frameworks to encourage gender diversity and CSR Committees within companies, emphasizing their positive impact on corporate governance, social responsibility, and sustainability reporting.
Keywords: female directors, female director expertise, csr committee, csr disclosure
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References
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Ahmad, N. B. J., Rashid, A., & Gow, J. (2018). Corporate board gender diversity and corporate social responsibility reporting in Malaysia. Gender, Technology and Development, 22(2), 87–108. https://doi.org/10.1080/09718524.2018.1496671
Al Fadli, A., Sands, J., Jones, G., Beattie, C., & Pensiero, D. (2019). Board gender diversity and CSR reporting: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 13(3), 29–52. https://doi.org/10.14453/aabfj.v13i3.3
Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2
Bebbington, J., & Unerman, J. (2018). Achieving the United Nations Sustainable Development Goals: An enabling role for accounting research. Accounting, Auditing and Accountability Journal, 31(1), 2–24. https://doi.org/10.1108/AAAJ-05-2017-2929
Bernardi, R. A., & Threadgill, V. H. (2010). Women Directors and Corporate Social Responsibility. In Electronic Journal of Business Ethics and Organization Studies (Vol. 15, Issue 2). http://ejbo.jyu.fi/
Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance and Economics, 26(4), 5704–5719. https://doi.org/10.1002/ijfe.2089
Cucari, N., Esposito De Falco, S., & Orlando, B. (2017). Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies. Corporate Social Responsibility and Environmental Management, 25(3), 250–266.
Dienes, D., & Velte, P. (2016). The impact of supervisory board composition on CSR reporting. Evidence from the German two-tier system. Sustainability (Switzerland), 8(1). https://doi.org/10.3390/su8010063
Elmaghrabi, M. E. (2021). CSR committee attributes and CSR performance: UK evidence. Corporate Governance (Bingley), 21(5), 892–919. https://doi.org/https://doi.org/10.1108/CG-01-2020-0036
García-Sánchez, I. M., Gómez-Miranda, M. E., David, F., & Rodríguez-Ariza, L. (2019). The explanatory effect of CSR committee and assurance services on the adoption of the IFC performance standards, as a means of enhancing corporate transparency. Sustaina
Hamdani, R., Najamuddin, Y., Haryanto, P. D., & Kholid, M. N. (2020). A Comparative Study on CSR Disclosure between Indonesian Islamic Banks and Conventional Banks: the Application of GRI and ISR Indexes. SSRN Electronic Journal, 24(December).
Harjoto, M., Laksmana, I., & Lee, R. (2014). Board Diversity and Corporate Social Responsibility. Journal of Business Ethics, 132(4), 641–660. https://doi.org/10.1007/s10551-014-2343-0
Hoang, Trang Cam, Abeysekera, Indra, & Ma, Shiguang. (2018). Board Diversity and Corporate Social Disclosure: Evidence from Vietnam. Journal of Business Ethics, 151(3), 833–852. https://doi.org/10.1007/s10551-016-3260-1
Huang, X. B., & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34, 1–16. https://doi.org/10.1016/j.acclit.2015.03.001
Hyun, E., Yang, D., Jung, H., & Hong, K. (2016). Women on boards and corporate social responsibility. Sustainability (Switzerland), 8(4), 1–26. https://doi.org/10.3390/su8040300
Ibrahim, A. H., & Hanefah, M. M. (2016). Board diversity and corporate social responsibility in Jordan. Journal of Financial Reporting and Accounting, 14(2), 279–298. https://doi.org/10.1108/jfra-06-2015-0065
Jahid, M. A., Rashid, M. H. U., Hossain, S. Z., Haryono, S., & Jatmiko, B. (2020). Impact of corporate governance mechanisms on corporate social responsibility disclosure of publicly-listed banks in Bangladesh. Journal of Asian Finance, Economics and Busi
Jizi, M. (2017). The Influence of Board Composition on Sustainable Development Disclosure. Business Strategy and the Environment, 26(5), 640–655. https://doi.org/10.1002/bse.1943
Kanter, R. M. (1977). Men and women of the corporation. The British Journal of Sociology, 31(1), 135–136. https://www.jstor.org/stable/590086?origin=JSTOR-pdf
Katmon, N., Mohamad, Z. Z., Norwani, N. M., & Farooque, O. Al. (2019). Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market. Journal of Business Ethics, 157(2), 447–481.
Khan, I., Khan, I., & Saeed, B. bin. (2019b). Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan. Corporate Social Responsibility and Environmental Management, 26(6), 1371–1381. https://doi.org/10.100
Khan, I., Khan, I., & Senturk, I. (2019a). Board diversity and quality of CSR disclosure: evidence from Pakistan. Corporate Governance (Bingley), 19(6), 1187–1203. https://doi.org/10.1108/CG-12-2018-0371
Konrad, A. M., Kramer, V. W., & Erkut, S. (2008). Critical Mass: The Impact of Three or More Women on Corporate Boards. Organizational Dynamics, 37(2), 145–164. https://doi.org/10.1016/j.orgdyn.2008.02.005
Kramer, V. W., Konrad, A. M., Erkut, S., & Hooper, M. J. (2007). Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance. Organizational Dynamics, 19–22. https://www.ionwomen.org/wp-content/uploads/2010/12/criticalmass.pdf
Maji, Santi Gopal, & Saha, Rupjyoti. (2021). Gender diversity and financial performance in an emerging economy: empirical evidencefrom India. Management Research Review, 44(12), 1660–1683. https://doi.org/10.1108/MRR-08-2020-0525
Mantovani, R., & Wiwoho, J. (2019). The Urgency of Sanctions for Violators of Corporate Social Responsibility (CSR) for Improving of The Welfare of Society. Advances in Social Science, Education and Humanities Research, 358(Icglow), 228–232.
Matitaputty, J. S., & Davianti, A. (2020). Does broad gender diversity affect corporate social responsibility disclosures? JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 17(1), 35. https://doi.org/10.31106/jema.v17i1.3612_
Naheed, R., AlHares, A., Shahab, Y., & Naheed, R. (2021). Board’s financial expertise and corporate social responsibility disclosure in China. Corporate Governance (Bingley), 21(4), 716–736. https://doi.org/10.1108/CG-08-2020-0329
Perpres Nomor 59 Tahun 2017. (2017). Peraturan Presiden Republik Indonesia No. 59 Tahun 2017. 1, 1–14.
Peršić, M., Janković, S., & Krivačić, D. (2017). Sustainability Accounting: Upgrading Corporate Social Responsibility. CSR, Sustainability, Ethics and Governance, 285–303. https://doi.org/10.1007/978-3-319-39089-5_15
POJK Nomor 51 Tahun 2017. (2017). Peraturan Otoritas Jasa Keuangan No. 51 Tahun 2017. 1–15.
Rao, K. K., & Tilt, C. (2016). Board diversity and CSR reporting: an Australian study. Meditari Accountancy Research, 24. https://doi.org/http://dx.doi.org/10.1108/MEDAR-08-2015-0052
Rao, K. K., & Tilt, C. (2020). Gender and CSR decisions: perspectives from Australian boards. Meditari Accountancy Research, 29(1), 60–85. https://doi.org/10.1108/MEDAR-11-2019-0609
Rao, K., & Tilt, C. (2016). Article information :"Board diversity and CSR reporting: an Australian study. Dynamic Factor Models, 24(2).
Saggar, Ridhima, Arora, Nischay, & Singh, Balwinder. (2022). Gender diversity in corporate boardrooms and risk disclosure: Indian evidence. Gender in Management, 37(2), 182–201. https://doi.org/10.1108/GM-06-2020-0174
Smith, N. (2018). Gender quotas on boards of directors. IZA World of Labor, December, 1–10. https://doi.org/10.15185/izawol.7.v2
Sucahyati, D., Harymawan, I., & Nasih, M. (2022). Corporate Social Responsibility (CSR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2), 281–309. https://doi.org/10.18196/jai.v23i2.14865
Taufik, M. (2021). The Influence of the BOD`s characteristics toward corporate social responsibility: Study non financial and financial firms in Indonesia. Jurnal Akuntansi & Auditing Indonesia, 25(2), 194–208. https://doi.org/10.20885/jaai.vol25.iss2.art
Taufik, M., & Clevertan, W. (2023). Dividend , Corporate Social Responsibility , And Non-Renewable Energy : Testing Board Diversity Alignments. 5(1), 101–121. https://doi.org/10.35313/ijabr.v5i01.306
Taufik, M., & Oh, J. F. (2023). Does diversity in supervisory boards affect profitability and corporate social responsibility? Journal of Corporate Accounting and Finance, August 2022, 1–27. https://doi.org/10.1002/jcaf.22633
Torchia, M., Calabrò, A., & Huse, M. (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. Journal of Business Ethics, 102(2), 299–317. https://doi.org/10.1007/s10551-011-0815-z
Ahmad, M., Raja Kamaruzaman, R. N. S., Hamdan, H., & Annuar, H. A. (2019). Women directors and firm performance: Malaysian evidence post policy announcement. Journal of Economic and Administrative Sciences, 36(2), 96–109. https://doi.org/10.1108/jeas-04-2
Ahmad, N. B. J., Rashid, A., & Gow, J. (2018). Corporate board gender diversity and corporate social responsibility reporting in Malaysia. Gender, Technology and Development, 22(2), 87–108. https://doi.org/10.1080/09718524.2018.1496671
Al Fadli, A., Sands, J., Jones, G., Beattie, C., & Pensiero, D. (2019). Board gender diversity and CSR reporting: Evidence from Jordan. Australasian Accounting, Business and Finance Journal, 13(3), 29–52. https://doi.org/10.14453/aabfj.v13i3.3
Bear, S., Rahman, N., & Post, C. (2010). The Impact of Board Diversity and Gender Composition on Corporate Social Responsibility and Firm Reputation. Journal of Business Ethics, 97(2), 207–221. https://doi.org/10.1007/s10551-010-0505-2
Bebbington, J., & Unerman, J. (2018). Achieving the United Nations Sustainable Development Goals: An enabling role for accounting research. Accounting, Auditing and Accountability Journal, 31(1), 2–24. https://doi.org/10.1108/AAAJ-05-2017-2929
Bernardi, R. A., & Threadgill, V. H. (2010). Women Directors and Corporate Social Responsibility. In Electronic Journal of Business Ethics and Organization Studies (Vol. 15, Issue 2). http://ejbo.jyu.fi/
Brahma, S., Nwafor, C., & Boateng, A. (2021). Board gender diversity and firm performance: The UK evidence. International Journal of Finance and Economics, 26(4), 5704–5719. https://doi.org/10.1002/ijfe.2089
Cucari, N., Esposito De Falco, S., & Orlando, B. (2017). Diversity of Board of Directors and Environmental Social Governance: Evidence from Italian Listed Companies. Corporate Social Responsibility and Environmental Management, 25(3), 250–266.
Dienes, D., & Velte, P. (2016). The impact of supervisory board composition on CSR reporting. Evidence from the German two-tier system. Sustainability (Switzerland), 8(1). https://doi.org/10.3390/su8010063
Elmaghrabi, M. E. (2021). CSR committee attributes and CSR performance: UK evidence. Corporate Governance (Bingley), 21(5), 892–919. https://doi.org/https://doi.org/10.1108/CG-01-2020-0036
García-Sánchez, I. M., Gómez-Miranda, M. E., David, F., & Rodríguez-Ariza, L. (2019). The explanatory effect of CSR committee and assurance services on the adoption of the IFC performance standards, as a means of enhancing corporate transparency. Sustaina
Hamdani, R., Najamuddin, Y., Haryanto, P. D., & Kholid, M. N. (2020). A Comparative Study on CSR Disclosure between Indonesian Islamic Banks and Conventional Banks: the Application of GRI and ISR Indexes. SSRN Electronic Journal, 24(December).
Harjoto, M., Laksmana, I., & Lee, R. (2014). Board Diversity and Corporate Social Responsibility. Journal of Business Ethics, 132(4), 641–660. https://doi.org/10.1007/s10551-014-2343-0
Hoang, Trang Cam, Abeysekera, Indra, & Ma, Shiguang. (2018). Board Diversity and Corporate Social Disclosure: Evidence from Vietnam. Journal of Business Ethics, 151(3), 833–852. https://doi.org/10.1007/s10551-016-3260-1
Huang, X. B., & Watson, L. (2015). Corporate social responsibility research in accounting. Journal of Accounting Literature, 34, 1–16. https://doi.org/10.1016/j.acclit.2015.03.001
Hyun, E., Yang, D., Jung, H., & Hong, K. (2016). Women on boards and corporate social responsibility. Sustainability (Switzerland), 8(4), 1–26. https://doi.org/10.3390/su8040300
Ibrahim, A. H., & Hanefah, M. M. (2016). Board diversity and corporate social responsibility in Jordan. Journal of Financial Reporting and Accounting, 14(2), 279–298. https://doi.org/10.1108/jfra-06-2015-0065
Jahid, M. A., Rashid, M. H. U., Hossain, S. Z., Haryono, S., & Jatmiko, B. (2020). Impact of corporate governance mechanisms on corporate social responsibility disclosure of publicly-listed banks in Bangladesh. Journal of Asian Finance, Economics and Busi
Jizi, M. (2017). The Influence of Board Composition on Sustainable Development Disclosure. Business Strategy and the Environment, 26(5), 640–655. https://doi.org/10.1002/bse.1943
Kanter, R. M. (1977). Men and women of the corporation. The British Journal of Sociology, 31(1), 135–136. https://www.jstor.org/stable/590086?origin=JSTOR-pdf
Katmon, N., Mohamad, Z. Z., Norwani, N. M., & Farooque, O. Al. (2019). Comprehensive Board Diversity and Quality of Corporate Social Responsibility Disclosure: Evidence from an Emerging Market. Journal of Business Ethics, 157(2), 447–481.
Khan, I., Khan, I., & Saeed, B. bin. (2019b). Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan. Corporate Social Responsibility and Environmental Management, 26(6), 1371–1381. https://doi.org/10.100
Khan, I., Khan, I., & Senturk, I. (2019a). Board diversity and quality of CSR disclosure: evidence from Pakistan. Corporate Governance (Bingley), 19(6), 1187–1203. https://doi.org/10.1108/CG-12-2018-0371
Konrad, A. M., Kramer, V. W., & Erkut, S. (2008). Critical Mass: The Impact of Three or More Women on Corporate Boards. Organizational Dynamics, 37(2), 145–164. https://doi.org/10.1016/j.orgdyn.2008.02.005
Kramer, V. W., Konrad, A. M., Erkut, S., & Hooper, M. J. (2007). Critical Mass on Corporate Boards: Why Three or More Women Enhance Governance. Organizational Dynamics, 19–22. https://www.ionwomen.org/wp-content/uploads/2010/12/criticalmass.pdf
Maji, Santi Gopal, & Saha, Rupjyoti. (2021). Gender diversity and financial performance in an emerging economy: empirical evidencefrom India. Management Research Review, 44(12), 1660–1683. https://doi.org/10.1108/MRR-08-2020-0525
Mantovani, R., & Wiwoho, J. (2019). The Urgency of Sanctions for Violators of Corporate Social Responsibility (CSR) for Improving of The Welfare of Society. Advances in Social Science, Education and Humanities Research, 358(Icglow), 228–232.
Matitaputty, J. S., & Davianti, A. (2020). Does broad gender diversity affect corporate social responsibility disclosures? JEMA: Jurnal Ilmiah Bidang Akuntansi Dan Manajemen, 17(1), 35. https://doi.org/10.31106/jema.v17i1.3612_
Naheed, R., AlHares, A., Shahab, Y., & Naheed, R. (2021). Board’s financial expertise and corporate social responsibility disclosure in China. Corporate Governance (Bingley), 21(4), 716–736. https://doi.org/10.1108/CG-08-2020-0329
Perpres Nomor 59 Tahun 2017. (2017). Peraturan Presiden Republik Indonesia No. 59 Tahun 2017. 1, 1–14.
Peršić, M., Janković, S., & Krivačić, D. (2017). Sustainability Accounting: Upgrading Corporate Social Responsibility. CSR, Sustainability, Ethics and Governance, 285–303. https://doi.org/10.1007/978-3-319-39089-5_15
POJK Nomor 51 Tahun 2017. (2017). Peraturan Otoritas Jasa Keuangan No. 51 Tahun 2017. 1–15.
Rao, K. K., & Tilt, C. (2016). Board diversity and CSR reporting: an Australian study. Meditari Accountancy Research, 24. https://doi.org/http://dx.doi.org/10.1108/MEDAR-08-2015-0052
Rao, K. K., & Tilt, C. (2020). Gender and CSR decisions: perspectives from Australian boards. Meditari Accountancy Research, 29(1), 60–85. https://doi.org/10.1108/MEDAR-11-2019-0609
Rao, K., & Tilt, C. (2016). Article information :"Board diversity and CSR reporting: an Australian study. Dynamic Factor Models, 24(2).
Saggar, Ridhima, Arora, Nischay, & Singh, Balwinder. (2022). Gender diversity in corporate boardrooms and risk disclosure: Indian evidence. Gender in Management, 37(2), 182–201. https://doi.org/10.1108/GM-06-2020-0174
Smith, N. (2018). Gender quotas on boards of directors. IZA World of Labor, December, 1–10. https://doi.org/10.15185/izawol.7.v2
Sucahyati, D., Harymawan, I., & Nasih, M. (2022). Corporate Social Responsibility (CSR) Disclosure on Politically Connected-Family Firms. Journal of Accounting and Investment, 23(2), 281–309. https://doi.org/10.18196/jai.v23i2.14865
Taufik, M. (2021). The Influence of the BOD`s characteristics toward corporate social responsibility: Study non financial and financial firms in Indonesia. Jurnal Akuntansi & Auditing Indonesia, 25(2), 194–208. https://doi.org/10.20885/jaai.vol25.iss2.art
Taufik, M., & Clevertan, W. (2023). Dividend , Corporate Social Responsibility , And Non-Renewable Energy : Testing Board Diversity Alignments. 5(1), 101–121. https://doi.org/10.35313/ijabr.v5i01.306
Taufik, M., & Oh, J. F. (2023). Does diversity in supervisory boards affect profitability and corporate social responsibility? Journal of Corporate Accounting and Finance, August 2022, 1–27. https://doi.org/10.1002/jcaf.22633
Torchia, M., Calabrò, A., & Huse, M. (2011). Women Directors on Corporate Boards: From Tokenism to Critical Mass. Journal of Business Ethics, 102(2), 299–317. https://doi.org/10.1007/s10551-011-0815-z
Published
2024-01-31
How to Cite
LUDYA, Angeliqa; DEWI, Sari.
The Role of Female Directors and CSR Committees on Corporate Social Responsibility Disclosure.
Jurnal Ilmiah Akuntansi dan Bisnis, [S.l.], v. 19, n. 1, p. 49-65, jan. 2024.
ISSN 2303-1018.
Available at: <https://ojs.unud.ac.id/index.php/jiab/article/view/109253>. Date accessed: 02 nov. 2024.
doi: https://doi.org/10.24843/JIAB.2024.v19.i01.p04.
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