Page 48 - SUSTAINABILITY ISSUES & COVID-19

FINDINGS

The First research question is about the impact of corruption case on disclosure of compliance and anti- corruption
committed by company. The result shows that there is an increase in number of disclosure from 2016 to 2018. Whereas,
there’s also an elaboration of substance from the disclosure made by corporations, such as there is an explanation
and affirmation regarding code of Ethics in order to improve compliance, and new roles and responsibilities, such
as corporate secretary participates in helping improve compliance in the corporation, etc. This shows that company
makes efforts to minimize asymmetric information with improving the disclosure of compliance and anti-corrupiton
practice.Company realize that disclosure is a media for the company to communicate all of information in company to
the stakeholders. This is in line with the research conducted by Blanc et al. (2019) where as a corporation that is involved
in a corruption scandal, Siemens made a significant increase in disclosures related to compliance and resistance to
corruption in the period when a corruption case occurred.

Next, regarding the second research question about the form of disclosure reviewed based on organizational façades.
The result of the research shows that company apply rational façade, progressive façade, and reputational façade in
their disclosure as an effort to legitimize corruption case that happened to the company. This is in line with the research
conducted by Cho, Laine, Roberts, & Rodrigue (2015) in which when company experience legitimacy crisis, company
can apply those three facades all at once in order to repair the legitimacy crisis.

Aside from that, when comparing between disclosure made by company regarding corruption with other disclosures,
company tend to legitimize disclosures beyond compliance and anti-corruption practices. The proportion of company’s
disclosure to legitimize corruption case still tend to be few and only done in annual report. This result is in line with
the research conducted by Frost, et al. (2005) where disclosure made by company regarding compliance and anti-
corruption practices tend to be few and only made by company that have already been involved in corruption case.
Branco & Delgado (2011) explain that company consider that compliance and anti-corruption practices is a sensitive
topic and could worsen the skepticism the public and other stakeholders have towards company, as the impacted of
corruption case that occur in company.

ORIGINALITY/ VALUE

This research contirbutes to give evaluation to company regarding their disclosure, both disclosure of anti-corruption
or other disclosures after the company involved to corruption case and form of that disclosure based on organizational
facades framework. Further analysis can be done because this research not only focus to the disclosure made by
company in annual report but also in other disclosure medias such as social media, company’s website, and online
news. All those data are processed using NVivo 12 Plus software which can process text –based data in large quantities.
However, this research does not use any foreign or local/regional media as the data. Therefore, further research is
expected to be able to use foreign media or local/regional media as research data. This is to anticipate the possibility
of other more detailed information so deeper analysis can be conducted. Aside from that, further research can also use
interview as a method in collecting data so it can strengthen the result of research analysis.

Keywords:
Disclosure Response, Corruption, Legitimacy crisis, Organizational Facades
JEL Classification
Corporate Social Responsibility

International Conference on Sustainability 47
(5 Sustainability Practitioner Conference)
Th