Enhancing Corporate Social Responsibility (CSR) Transparency: The Role of Corporate Governance in Indonesia Mining Sector

Abstract

          This study aims to analyze the impact of corporate governance on corporate social responsibility disclosure (CSRD) in Indonesia's mining sector during the 2014-2018 period. The study focused on 60 companies, selecting 30 through purposive sampling, resulting in 150 observations. Panel data regression was employed for analysis. Key findings include: First, board size (BSIZE) positively and significantly influences CSRD, suggesting that a larger board enhances diversity and improves oversight, aligning with agency theory. Second, board independence (IND) also positively impacts CSRD, indicating that independent directors encourage greater transparency in social and environmental responsibility disclosures, ensuring alignment with shareholder interests. Conversely, gender diversity on the board (DIV) and the audit committee (AC) do not significantly affect CSRD. The findings imply that the audit committee's focus on financial matters may limit its oversight of CSR activities. This study contributes to corporate governance and CSR literature in the mining sector, offering practical insights for companies to enhance CSR disclosure.