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27 Commissioners Board Characteristics,
Ownership Structure and Sustainability
Development Goals (SDGs)
Andri Prastiwi, Belinda Dewi Setyaningrum
EXTENDED ABSTRACT
PURPOSE
Presidential Decree of the Republic of Indonesia Number 59 of 2017 concerning the implementation of the achievement
of sustainable development goals (SDGs) reflects the seriousness of the Indonesian government in supporting the
realization of the SDGs in 2030. The programs invite all parties to involve on the implementation. Therefore, the purpose
of this study is to observe to what extent the involvement of business entities, especially manufacturing companies,
in achieving the sustainability development goals (SDGs), by emphasizing the role of the board of commissioners as
a corporate governance organ and investors. The research model refers to previous research which so far has focused
on corporate social resposibility (CSR) disclosure. In this research, CSR is still the focus of observation, however the
observed content is different, namely the SDGs content that has been carried out by the company and disclosed in the
annual report in the CSR sub-chapter. The coverage of SDGs content is wider than CSR content, because SDGs use 247
criteria from the dimensions of social environment and governance, of which 100 are taken from the GRI guidelines
(Eccles, Serafeim, and Krzus, 2011), which are commonly used for CSR disclosure research.
STUDY DESIGN/METHODOLOGY/APPROACH
This study uses secondary data and applies a positivist approach with a regression analysis for hyphotheses testing. The
independent variables include the characteristic board commissioners, ownership structure and four control variables,
and the dependent variable is SDGs disclosure. All data was sourced from the annual report of each corporate web site.
Content analysis was applied to collect SDGs disclosure data. Purposive sampling obtains 91 campanies to be sample
and produce 182 observations.
FINDINGS
The results shows that board size and independent board have a significant positive effect on the disclosure of SDGs
as hypothesized. These results explain that there is a role for the board of commissioners as an important organ in
corporate governance in achieving the SDGs in manufacturing companies in Indonesia. These results are in line with
Zaid et al.(2019) in CSR disclosure context. In addition, the role of the ivestors as the first tier (Zabihollah, 2009) is
indicated by the support of the hypothesis which states that there is a positive relationship between institutional
ownership and SDGs disclosure. Conclusive finding is given from control variable company size that providing empirial
evident about significant positive relationship with SDGs disclosure. This result almost
ORIGINALITY/VALUE
Focus on SDGs for business entities becomes primary contribution in this study. The results of this study are expected
to provide feedback for the government on how committed business entities are to participate in achieving the SDGs.
It is needed further investigation on other sector of business and also non-government organizations (NGO) or other
parties as SDGs programs invite all parties to move together in realizing SDGs. Hopefully, SDGs programs is required to
be part of corporate strategy to increase corporate value in the long term. Discovering motives of companies to involve
in SDGs program implementation can be interesting insight in this context.
International Conference on Sustainability 175
(5 Sustainability Practitioner Conference)
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