Increase the size of the Board of Commissioners

Oct 13, 2025 by vinooalluri.com 119 views

The Impact of Various Factors on Corporate Social Responsibility Disclosure in Real Estate and Property Companies

Introduction

In today's fast-paced business world, Corporate Social Responsibility (CSR) Disclosure has become an essential aspect of a company's operations, particularly in the real estate and property sector. As industries continue to grow and develop, companies are expected not only to focus on profitability but also to contribute to the community and the environment. This study aims to explore the effect of company growth, company size, profitability, board of commissioners, media exposure, and institutional ownership on CSR disclosure in the annual financial statements of real estate and property companies listed on the Indonesia Stock Exchange (IDX) between 2016 to 2019.

The Importance of CSR Disclosure

CSR Disclosure is a critical aspect of a company's operations, as it reflects the company's commitment to social responsibility and sustainability. In the real estate and property sector, CSR Disclosure is particularly important, as it can have a significant impact on the company's reputation, stakeholder confidence, and ultimately, its financial performance. By disclosing CSR activities, companies can demonstrate their commitment to social responsibility, which can lead to increased stakeholder trust, improved reputation, and ultimately, increased financial performance.

Research Methodology

This study uses the associative method of causality with secondary data obtained from 62 real estate companies and property listed on the IDX. By using purposive sampling techniques, researchers managed to collect data from 36 companies that meet the criteria. The data obtained is then processed using SPSS software with multiple regression analysis techniques.

Research Results

The results of the analysis showed that there was a significant effect of the size of the Board of Commissioners and Media Exposure on Corporate Social Responsibility Disclosure. This shows that companies with a larger board of commissioners tend to be more transparent in reporting their CSR activities. High exposure media also put positive social pressure, so companies are more encouraged to express their social responsibility.

However, factors such as company growth, company size, profitability, and institutional ownership do not show a significant effect on CSR disclosure. This might indicate that even though companies are large and profitable, they are not always more active in reporting their CSR activities.

Additional Analysis and Explanation

The size of the board of commissioners played an important role in the disclosure of CSR. The larger board of commissioners usually have more knowledge and experience that can be used to assess and direct the company's CSR activities. Thus, they are better able to encourage companies to pay attention to their social responsibility.

Media exposure also plays a significant role. In the current digital era, companies cannot avoid supervision from the public. CSR activities that are reported well not only increase the company's reputation but can also increase the confidence of stakeholders, such as investors and the general public.

On the other hand, the powerlessness of company growth, company size, profitability, and institutional ownership in influencing CSR disclosure shows that some companies may still consider CSR as additional activities that are not directly related to financial benefits. This can be a signal that these companies need to integrate more CSR into their business strategy.

Conclusion

Overall, this research highlights the importance of the size of the Board of Commissioners and Media Exposure in the disclosure of Corporate Social Responsibility. Although several other factors do not show a significant effect, this shows that there is space to increase company involvement in social responsibility. Real estate and property companies listed on the IDX need to re-assess their approach to CSR and try to increase their transparency and accountability in the annual financial statements. By doing this, it will not only improve the company's image, but also make a positive contribution to the community and the environment.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase the size of the Board of Commissioners: Companies should consider increasing the size of their board of commissioners to ensure that they have the necessary knowledge and experience to assess and direct CSR activities.
Improve Media Exposure: Companies should strive to increase their media exposure by engaging in CSR activities that are reported well in the media.
Integrate CSR into Business Strategy: Companies should consider integrating CSR into their business strategy to ensure that CSR activities are aligned with the company's overall goals and objectives.
Increase Transparency and Accountability: Companies should strive to increase their transparency and accountability in the annual financial statements by disclosing CSR activities in a clear and concise manner.

By implementing these recommendations, real estate and property companies listed on the IDX can improve their CSR disclosure and make a positive contribution to the community and the environment.
Frequently Asked Questions (FAQs) on Corporate Social Responsibility Disclosure in Real Estate and Property Companies

Q: What is Corporate Social Responsibility (CSR) Disclosure?

A: CSR Disclosure is the process of reporting a company's social responsibility activities and initiatives in its annual financial statements. It reflects the company's commitment to social responsibility and sustainability.

Q: Why is CSR Disclosure important in the real estate and property sector?

A: CSR Disclosure is particularly important in the real estate and property sector because it can have a significant impact on the company's reputation, stakeholder confidence, and ultimately, its financial performance. By disclosing CSR activities, companies can demonstrate their commitment to social responsibility, which can lead to increased stakeholder trust, improved reputation, and ultimately, increased financial performance.

Q: What are the key factors that influence CSR Disclosure in real estate and property companies?

A: The key factors that influence CSR Disclosure in real estate and property companies include:

Size of the Board of Commissioners: Companies with a larger board of commissioners tend to be more transparent in reporting their CSR activities.
Media Exposure: High exposure media puts positive social pressure on companies, encouraging them to express their social responsibility.
Company Growth: While company growth may not directly influence CSR Disclosure, it can have an indirect impact by increasing the company's resources and capabilities to engage in CSR activities.
Company Size: While company size may not directly influence CSR Disclosure, it can have an indirect impact by increasing the company's resources and capabilities to engage in CSR activities.
Profitability: While profitability may not directly influence CSR Disclosure, it can have an indirect impact by increasing the company's resources and capabilities to engage in CSR activities.
Institutional Ownership: While institutional ownership may not directly influence CSR Disclosure, it can have an indirect impact by increasing the company's accountability to its stakeholders.

Q: What are the benefits of CSR Disclosure in real estate and property companies?

A: The benefits of CSR Disclosure in real estate and property companies include:

Improved Reputation: CSR Disclosure can improve a company's reputation by demonstrating its commitment to social responsibility.
Increased Stakeholder Confidence: CSR Disclosure can increase stakeholder confidence by providing transparency and accountability.
Increased Financial Performance: CSR Disclosure can lead to increased financial performance by improving a company's reputation and stakeholder confidence.
Compliance with Regulatory Requirements: CSR Disclosure can help companies comply with regulatory requirements and industry standards.

Q: What are the challenges of CSR Disclosure in real estate and property companies?

A: The challenges of CSR Disclosure in real estate and property companies include:

Lack of Resources: Companies may lack the resources and capabilities to engage in CSR activities.
Lack of Transparency: Companies may lack transparency in reporting their CSR activities.
Lack of Accountability: Companies may lack accountability to their stakeholders.
Compliance with Regulatory Requirements: Companies may struggle to comply with regulatory requirements and industry standards.

Q: How can real estate and property companies improve their CSR Disclosure?

A: Real estate and property companies can improve their CSR Disclosure by:

Increasing the size of the Board of Commissioners: Companies should consider increasing the size of their board of commissioners to ensure that they have the necessary knowledge and experience to assess and direct CSR activities.
Improving Media Exposure: Companies should strive to increase their media exposure by engaging in CSR activities that are reported well in the media.
Integrating CSR into Business Strategy: Companies should consider integrating CSR into their business strategy to ensure that CSR activities are aligned with the company's overall goals and objectives.
Increasing Transparency and Accountability: Companies should strive to increase their transparency and accountability in the annual financial statements by disclosing CSR activities in a clear and concise manner.

By implementing these recommendations, real estate and property companies can improve their CSR Disclosure and make a positive contribution to the community and the environment.