This study examined the influence of the chief executive experience working abroad and ownership independent variables, as well as profitability and firm size as control variables on the disclosure of CSR. This research was based on information provided by industrial manufacturing companies listed on the Indonesia Stock Exchange in 2014. The date analysis and discussions allow us to conclude the following:
· The CEOs’ international working experience contributes to the disclosure of CSR activities in manufacturing companies in Indonesia in accordance with their foreign working experience.
· Foreign ownership in Indonesia does not fully consider social and environmental criteria in making investment decisions. Foreign owners of companies in Indonesia do not extensively disclose environmental and social issues in annual reports, particularly if foreign ownership is consolidated with the parent company in the country of origin and the percentage of its ownership is very small.
· Profitability is an important consideration in CSR. This is because companies that have high profitability will have financial resources to carry out and disclose CSR activities, because the companies with high profitability are considered to finance social activities.
· Large companies tend to disclose more extensive information and do various CSR activities that influence society and environment as well as reveal more information about the undertaken CSR activities in the company’s annual report. This is because large companies are listed companies that are mostly highlighted by the public so greater CSR disclosure is a form of political cost reduction.
By: Inten Meutia, Mukhtaruddin, Yulia Saftiana, and Muhammad Faisal (Sriwijaya University, Indonesia)
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