Expectations on Labour-Related CSR Reporting: Voices from Labour Unions in Indonesia and Thailand

Abstract

This paper examines the viewpoints of labour unions' leaders in Indonesia and Thailand regarding labour-related corporate social responsibility (CSR) reporting. Fifteen respondents representing leaders from seven labour unions in Indonesia and Thailand were interviewed using semi-structured questions. The results revealed that Indonesian labour unions expected companies to provide a clearly specific section about labour-related CSR in annual reports whereas Thai labour unions expected companies to keep on providing oral disclosures through, for example, meetings in addition to written reports such as annual reports. Employment, Occupational Health and Safety, and Training and Education were considered the most important labour issues to be reported. Equal Remuneration for Women and Men was another issue which was deemed critical to be disclosed in Indonesia. From the lens of ethical stakeholder theory, it appeared that labour unions in the two countries attempted to voice workers' concerns and facilitate the fulfillment of workers' information rights. The labour union leaders' views seemed to be shaped by their ethical belief in how companies should be accountable to workers. The findings of this study can be used by regulators in Indonesia and Thailand as a reference for developing laws which specifically require companies to communicate relevant labour-related CSR information.

Does labour social responsibility disclosure affect financial performance? Evidence from Indonesia

“…However, in companies in Indonesia, with the lowest level of LA disclosure, there was no significant impact on their financial performance. In the study by Cahaya et al (2023), Indonesian labor union leaders expect companies to provide a specific section on labor-related Corporate Social Responsibility (CSR) in their annual reports, emphasizing the importance of written communication. Additionally, Indonesian respondents stress the need for disclosures regarding Equal Remuneration for Women and Men, particularly in the plantation industry, reflecting concerns over gender-based wage disparities.…”