Corporate social responsibility (CSR) information disclosure by annual reports of public companies listed at Indonesia Stock Exchange (IDX)

Abstract

Purpose

The purpose of this paper is to provide empirical proof concerning the social focus of responsibility information disclosure – dominant in annual reports of basic and chemical industries groups – and how the company's group type affects the amount and focus of social disclosure in a company's annual report.

Design/methodology/approach

This paper explains and describes data characteristics employed in the research. Annual reports are analyzed by content analysis method.

Findings

The results show that the main foci of social disclosure from companies registered at the Indonesia Stock Exchange are labor theme (51.60 percent), followed by customer theme (19.40 percent), society theme (14.70 percent) and environmental theme (14.30 percent), respectively. Hypothesis test proved that there is no significant difference in the presentation of social disclosure amount in all themes between companies in the basic and chemical industries group or in the variety industries group.

Research limitations/implications

The composing of a social disclosure list tends to be subjective and it is possible to omit certain items that are supposed to be disclosed by the company.

Practical implications

The paper shows that it is necessary to pay increased attention to the social environment, considering that companies and society are equally important.

Originality/value

This paper describes the importance of amount, manner, and the reason behind a company's social responsibility disclosure.

Citation

Mirfazli, E. (2008), "Corporate social responsibility (CSR) information disclosure by annual reports of public companies listed at Indonesia Stock Exchange (IDX)", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 1 No. 4, pp. 275-284. https://doi.org/10.1108/17538390810919592