CSR Reporting: Perspective of Female Audit Committee Having Financial Expertise

Abstract

Based on Law of The Republic of Indonesia Number 40 of 2007 Concerning Limited Liability Companies article 1 verse 3, corporate social responsibility is corporate commitment to contribute to economic development, which elevates the quality of life and environment for the company itself, social, and community.According to positive stakeholder relations, CSR can be part of the corporate strategy since it creates value for the stakeholder (Anderson & Bieniaszewska, 2005). Stakeholder theory stated that CSR could be an efficient way of managing the relationship between the company and its stakeholders. Since the stakeholder is a very crucial part of the company, the manager tends to do everything to keep the relationship with the stakeholder (Roberts, 1992).The company must disclose its CSR activity in its annual report (Law of The Republic of Indonesia Number 40 of 2007 concerning Limited Liability Companies article 66). Information disclosure can decrease the level of asymmetric information between investor and manager; consequently, the investor can rely on the manager and is willing to trade with the company, which causes a higher level of liquidity (Verrechia, 2001).On the other hand, disclosure of CSR activity might not be sincere or have the potential to mislead the financial statement users. Managers can strategically use CSR to disguise their opportunistic intention because by doing CSR, managers can secure their job, and then they will gain trust from the stakeholders (Cespa & Cestone, 2007). However, CSR disclosure can be used by the firm to "mask" or cover the inadequate CSR performance (Huang & Watson, 2015). Prior et al. (2008) stated that since management is doing earnings management, the company started to do more CSR to reduce stakeholder's scrutiny and increase company's reputation so that the investor will trust the company more.Regardless the cost and the benefit, several aspects affect the disclosure of CSR activity such as corporate life cycle (Widyasari et al. 2019), earnings management (

Do Environmental Performance, Feminism in Commissioner, Female Audit Committee, and Corporate Visibility Affect Corporate Environmental Disclosure?

“…An audit committee with female members will influence the corporate environmental disclosure style to disclose more conservatively to prevent financial statement users that could mislead the financial statements' user. A female audit committee member can delay the excellent news and tends to disclose the lousy information or avoid the exaggeration of corporate environmental disclosure (Widyasari & Ayunda, 2020). Ha₃: Female audit committee has a positive effect on corporate environmental disclosure.…”

Pengaturan CSR Dalam Rangka Percepatan Pembangunan Sosial Dan Lingkungan Di Indonesia

“…Undang-undang No. 40 Tahun 2007 tentang Perseroan Terbatas di Indonesia mewajibkan semua perusahaan yang beroperasi di sektor sumber daya alam atau kegiatan yang berkaitan dengannya untuk menerapkan CSR, khususnya dalam hal tanggung jawab lingkungan (Amalia & Suprapti, 2020) (Widyasari & Ayunda, 2020). Selain itu, Pasal 74 ayat 1 undang-undang ini secara khusus mengamanatkan bahwa organisasi yang melakukan kegiatan usaha yang berkaitan dengan aset tetap harus melaksanakan kegiatan tanggung jawab sosial dan lingkungan.…”

“…Komitmen terhadap CSR ini menggarisbawahi dedikasi Indonesia untuk menciptakan lingkungan bisnis yang mempertimbangkan dampak sosial dan lingkungan dari operasi perusahaan. Penggabungan prinsip-prinsip CSR dalam hukum perusahaan Indonesia telah memberikan kontribusi yang signifikan dalam mempromosikan praktik bisnis yang bertanggung jawab dan berkelanjutan, yang menyoroti upaya Indonesia untuk mencapai pembangunan berkelanjutan dan pertumbuhan ekonomi jangka panjang (Widyasari & Ayunda, 2020). Selain itu, dedikasi terhadap CSR telah memperkuat posisi dan reputasi Indonesia sebagai negara yang bertanggung jawab secara sosial di dunia internasional.…”

Pengaruh dewan direksi wanita pada pelaporan tanggung jawab sosial perusahaan 2017 -2021

“…(Qaderi et al, 2020) menyatakan Adanya audit committe dalam perusahaan dapat meningkatkan komunikasi antara pemilik perusahaan dengan manajemen perusahaan, selain itu dengan keberadaan audit commite diperusahaan dapat memberi informasi transparan dan meyakinkan pemangku kepentingan untuk keberadaan audit committee secara umum. Penelitian ini tidak sejalan dengan Widyasari & Ayunda., (2020) yang menyatakan keberadaan female audit commite memiliki pengaruh negatif yang dimana akan lebih konservatif dalam hal laporan corporate social responsibility Sukiantono Tang, Ayu Widya Sari (2022). Fair Value : Jurnal Ilmiah Akuntansi dan Keuangan.…”