Do board attributes influence Islamic social responsibility disclosure? Evidence from Indonesian sharia banking

Abstract

Purpose - This study aims to analyze further the disclosure of Islamic Social Responsibility (ISR) on board size, board independence, board diversity, and board activity.Method - This study uses quantitative methods and multiple linear regression analysis. This study uses a sample of Islamic Commercial Banks in Indonesia, which consistently reports from 2016 to 2019. The research sample is 13 Islamic Commercial Banks in Indonesia. The data analysis technique used a multiple linear regression test.Result - The results show that only board diversity can affect ISR disclosure, while the variable board size, board independence, and board activity cannot affect ISR disclosure. This study has an adjusted R square of 53.3%.Implication - This study recommends Islamic banking to increase the role of the board of directors to encourage ISR disclosure because the company's concern for social and environmental conditions can increase corporate value.Originality - In Indonesia, there are still not many researchers who have studied the attributes of the board and the disclosure of ISR. This research is expected to provide broader knowledge about the board's attributes in voluntary disclosure in the banking sector.

Sustainable development goals and corporate strategy: A map of the field

“…Even di Vaio et al (2022) talk about ethical corporate behavior (ECB), particularly in industries characterized by production phases in several countries.On one hand,Gider and Hamm (2019) consider that CSR communication to consumers that takes place through corporate websites must present evidence to be credible and avoid accusations of greenwashing. This last phenomenon is also addressed by Losa-Jonczyk (2020) & that analyze the dissemination of the contribution to the 2030 Agenda of companies through social networks, and others authors focus in a particular industry, as in food companies(Rajic et al, 2021), textile and apparel industry(Olofsson & Mark- Herbert, 2020), airlines(Perryman et al, 2022; and hotels and banking(Farida & Purwanto, 2021), or a geographical area, in BRICS countries(Ali et al, 2018), Greece(Tsalis et al, 2020), Italy(Spallini et al, 2021), Libia (Gerged & Almontaser, 2021), or Indonesia and Malaysia(E-Vahdati et al, 2022;Susilowati et al, 2022), as examples. There have even been studies, such as the one byEl-Said et al (2022), that analyze these instruments for the dissemination of CSR in intergovernmental and nongovernmental organizations or relate them to gender equality(Daniel- Vasconcelos et al, 2022;Escamilla-Solano et al, 2022;Hossain et al, 2022;Spallini et al, 2021).Non-financial or sustainability documents are also the basis for exploring the link of the corporate social responsibility strategy with the circular economy(Morea et al, 2021;Opferkuch et al, 2022), with the green economy(D'Amato et al, 2019), with the biodiversity disclosure(Adler et al, 2017) or with the business contribution to the achievement of SDGs (Ahenkan et al, 2018; Andrian et al, 2021; Moneva et al (2020), Naciti (2019), Nguyen et al (2020), Pachar and Garg (2020), Qin et al (2019) 2 , Saloranta (2021), Segovia-San-Juan et al (2017) 3,5 , Sekarlangit and Wardhani (2021) 1 , Selmier II et al (2017), Singhania and Saini (2022) 2 , Sorribes, Celma, and Martínez-García (2021); Sorribes, Celma, and Martinez-Garcia (2021) 4 , Yaram and Adapa (2021) Source: Self-made.…”

“…In any case, sharing information with stakeholders enables the creation of shared value (Cubilla-Montilla et al, 2019;Fonseca et al, 2021;Jyoti & Khanna, 2021;L opez, 2020;Matteucci, 2020;Sekarlangit & Wardhani, 2021) and contributes to greater corporate transparency (Cubilla-Montilla et al, 2019;García-Sánchez, Minutiello, & Tettamanzi, 2022b). Some of the mechanisms that contribute to business disclosure to stakeholders in the presence of CSR or sustainability committees (Daniel-Vasconcelos et al, 2022;Farida & Purwanto, 2021;Khan et al, 2021;, the use of new information and communication technol-…”

“…Research by Mattera et al (2020); Mattera and Ruiz-Morales The business interest in the 2030 Agenda and its SDGs is because its formulation has sensitized business leaders in their transparent commitment to sustainability (Macellari et al, 2021), since it is a guarantee of adequate management, business performance and managerial commitment (Farida & Purwanto, 2021;Westerman et al, 2021), being crucial in emerging economies (Corvino et al, 2020;Khattak et al, 2021). All this is also extensible throughout its supply chain (Khan et al, 2021;Muñoz-Torres et al, 2018;Pohlmann et al, 2020).…”

Green economy: Islamic social reporting for companies

“…According to Rahma & Bukair (2015), accountability is the connection between the person and the organization and God. ISR is the norm for reporting the social performance of Sharia-compliant enterprises, since traditional social reporting is no longer applicable to them (Farida et al, 2022).…”