The Role of Corporate Governance Strategy in Indonesia: Digital Transformation in Corporate Social Responsibility Disclosure
DOI:
https://doi.org/10.17977/um004v12i22025p133Keywords:
Digitalization, CSR, Corporate GovernanceAbstract
Purpose: This study aims to examine the impact of digitalization on corporate social responsibility (CSR) disclosure and to explore the moderating role of corporate governance strategies, particularly managerial ownership and internal control strength, in the context of public companies in Indonesia.
Method: This research is an explanatory quantitative study using Moderated Regression Analysis (MRA). The study sample consists of 140 companies listed on the Indonesia Stock Exchange (IDX) from 2020 to 2023. Data was collected from annual and sustainability reports and analyzed using a digitalization index and CSR disclosure index based on the Global Reporting Initiative (GRI) standards.
Findings: The results reveal that digitization has a positive and significant effect on CSR disclosure. Managerial ownership weakens the relationship between digitization and CSR disclosure, while it is strengthened by the strength of internal control. These findings indicate that the effectiveness of digitization in improving CSR transparency depends on the quality of internal corporate governance mechanisms.
Originality/Value: This study offers new empirical contributions by integrating digitalization strategies and corporate governance into an integrated analytical framework for understanding CSR disclosure practices. It also uses a moderation approach that is rarely applied in the Indonesian context and introduces a measurable digitalization index that can be adapted to other developing countries.
Author Biography
Sri Pujiningsih, Universitas Negeri Malang
orcid.org/0000-0002-7726-355X
SCOPUS ID: 57198428825
Google Scholar: Sri Pujiningsih
Sinta Ristekdikti: Sri Pujiningsih
Departemen Akuntansi
Fakultas Ekonomi dan Bisnis
References
Agustia, D., Dianawati, W., & Ariani, D. I. R. (2018). Managerial Ownership, Corporate Social Responsibility Disclosure and Corporate Performance. Management of Sustainable Development Journal, 10(2), 67-72. https://doi.org/10.2478/msd-2019-0011.
Akbar, S., & Deegan, C. (2021). Analysis of Corporate Social Disclosures of the Apparel Industry Following Crisis: An Institutional Approach. Accounting & Finance, 61(2), 3565-3600. https://doi.org/10.1111/acfi.12712.
Al-Omoush, K., Lassala, C., & Ribeiro-Navarrete, S. (2025). The Role of Digital Business Transformation in Frugal Innovation and SMEs’ Resilience in Emerging Markets. International Journal of Emerging Markets, 20(1), 366-386. https://doi.org/10.1108/IJOEM-12-2022-1937.
Atanasov, D., Ivanova, B., Beluhova-Uzunova, R., Shishkova, M., Hristov, K., Sharipov, S., & Khasanov, I. (2023). Regional Transformations in Bulgaria and Challenges for Sustainable Development. E3S Web of Conferences, 386, 1-14. https://doi.org/10.1051/e3sconf/202338605002.
Broccardo, L., Zicari, A., Jabeen, F., & Bhatti, Z. A. (2023). How Digitalization Supports a Sustainable Business Model: A Literature Review. Technological Forecasting and Social Change, 187, 1-54. https://doi.org/10.1016/j.techfore.2022.122146.
Camilleri, M. A. (2018). Theoretical Insights on Integrated Reporting: The Inclusion of Non-Financial Capitals in Corporate Disclosures. Corporate Communications: An International Journal, 23(4), 567–581. https://doi.org/10.1108/CCIJ-01-2018-0016.
Carroll, A. B. (2021). Corporate Social Responsibility (CSR) and the COVID-19 Pandemic: Organizational and Managerial Implications. Journal of Strategy and Management, 14(3), 315-330. https://doi.org/10.1108/JSMA-07-2021-0145.
García-Meca, E., Martínez-Ferrero, J., & Barbadillo, E. R. (2024). High-Quality Assurance, ESG Legitimacy Threats and Board Effectiveness. The British Accounting Review, 1-23. https://doi.org/10.1016/j.bar.2024.101385.
Guerrero-Avendaño, A., Bernal, W. N., & Amaya, C. L. (2023). Governance and Corporate Management System Supported by Innovation, Technology, and Digital Transformation as a Driver of Change. Sustainability, 15(17), 1-18. https://doi.org/10.3390/su151713150.
Haron, H., Jamil, N. N., Ramli, N. M., Parsimin, F. A., & Salleh, Z. (2023). Ethics Courses, Teaching Styles, Ethical Culture at Workplace and Values of Accounting Graduates in Malaysia. Asian Journal of Accounting and Governance, 20, 1-13. http://dx.doi.org/10.17576/AJAG-2023-20-01.
Irawan, A., Yendra, Y., Sutisna, E., Marihi, L., Mardatillah, M., & Soelistya, D. (2024). Digital Inequality and Digital Entrepreneurship in Indonesia. Jurnal Aplikasi Manajemen, 22(1), 193-204. https://doi.org/10.21776/ub.jam.2024.022.01.15.
Islam, M., & Jahid, M. S. R. (2023). Role of Digital Twins and Bim in US Highway Infrastructure Enhancing Economic Efficiency and Safety Outcomes through Intelligent Asset Management. American Journal of Advanced Technology and Engineering Solutions, 3(3), 54-81. https://doi.org/10.63125/hftt1g82.
Jin, X., & Mirza, S. S. (2024). The Impact of Digitalization on CSR Disclosure: A Governance Perspective. Journal of Enterprise Information Management, 37(1), 170-200. https://doi.org/10.1108/JEIM-04-2023-0177.
Jin, X., Mirza, S. S., Huang, C., & Zhang, C. (2024). Digital Transformation and Governance Heterogeneity as Determinants of CSR Disclosure: Insights from Chinese A-Share Companies. Corporate Governance: The International Journal of Business in Society, 24(6), 1314-1336. https://doi.org/10.1108/CG-04-2023-0173.
Khan, A., Muttakin, M. B., & Siddiqui, J. (2013). Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy. Journal of Business Ethics, 114(2), 207-223. https://doi.org/10.1007/s10551-012-1336-0.
Kurniawati, J., Yuliani, F., & Fajarini, S. D. (2025). Integration of Digital Communication in Sustainable Sharia Finance: Challenges and Opportunities in the Cyber Media Era. International Journal of Accounting Innovation, 1(2), 134-140. https://doi.org/10.61796/ijai.v1i2.12.
Laudon, K. C., & Laudon, J. P. (2020). Management Information Systems: Managing the Digital Firm (16th ed.). Pearson Education.
Li, D., & Shen, W. (2021). Can Corporate Digitalization Promote Green Innovation? The Moderating Roles of Internal Control and Institutional Ownership. Sustainability, 13(24), 1-22. https://doi.org/10.3390/su132413983.
Małkowska, A., Urbaniec, M., & Kosała, M. (2021). The Impact of Digital Transformation on European Countries: Insights from a Comparative Analysis. Equilibrium: Quarterly Journal of Economics and Economic Policy, 16(2), 325-355. https://doi.org/10.24136/eq.2021.012.
Martens, W., & Bui, C. N. M. (2023). An Exploration of Legitimacy Theory in Accounting Literature. Open Access Library Journal, 10(1), 1-20. https://doi.org/10.4236/oalib.1109713.
Mousa, G. A., & Hassan, N. T. (2020). Legitimacy Theory and Environmental Practices: Short Notes. International Journal of Business and Statistical Analysis 2(1), 41–53. https://doi.org/10.12785/ijbsa/020104.
Omidvar, M., Confetto, M. G., & Palazzo, M. (2025). Business Model Innovation: A Bridge Between Corporate Social Responsibility and Successful Performance for Medium-Size Enterprises (SMEs) in the Digital Era. Systems, 13(5), 1-33. https://doi.org/10.3390/systems13050378.
Pizzi, S., Mastroleo, G., Venturelli, A., & Caputo, F. (2024). The Digitalization of Sustainability Reporting Processes: A Conceptual Framework. Business Strategy and the Environment, 33(2), 1040-1050. https://doi.org/10.1002/bse.3544.
Ramananda, D., & Atahau, A. D. R. (2020). Corporate Social Disclosure through Social Media: An Exploratory Study. Journal of Applied Accounting Research, 21(2), 265-281. https://doi.org/10.1108/JAAR-12-2018-0189.
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331.
Sun, Y., Zhang, J., Han, J., & Zhang, Q. (2023). The Impact of Top Management Teams' Faultlines on Organizational Transparency―Evidence from CSR Initiatives. Business Ethics, the Environment & Responsibility, 32(4), 1262-1276. https://doi.org/10.1111/beer.12564.
Tilling, M. V., & Tilt, C. A. (2010). The Edge of Legitimacy: Voluntary Social and Environmental Reporting in Rothmans' 1956‐1999 Annual Reports. Accounting, Auditing & Accountability Journal, 23(1), 55-81. https://doi.org/10.1108/09513571011010600.
Velte, P. (2023). Does Sustainable Board Governance Drive Corporate Social Responsibility? A Structured Literature Review on European Archival Research. Journal of Global Responsibility, 14(1), 46-88. https://doi.org/10.1108/JGR-05-2022-0044.
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital Transformation: A Multidisciplinary Reflection and Research Agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022.
Vrana, V., & Singh, A. (2021). Digitalization in Corporate Communication: The Impact of Digital Transformation on Sustainability Reporting. Corporate Communications: An International Journal, 26(3), 651–664. https://doi.org/10.1108/CCIJ-10-2020-0134.
Wahyuni, W., Farman, S., Suaib, M. R., & Suaib, S. R. (2024). Implementation of CSR in Environmental Social Accounting Realizing Corporate Responsibility for Sustainability and Community Welfare. Advances: Jurnal Ekonomi & Bisnis, 2(5), 268-280. https://doi.org/10.60079/ajeb.v2i5.372.
Wang, L., Liu, S., & Xiong, W. (2022). The Impact of Digital Transformation on Corporate Environment Performance: Evidence from China. International Journal of Environmental Research and Public Health, 19(19), 1-20. https://doi.org/10.3390/ijerph191912846.
Zeng, H., Ran, H., Zhou, Q., Jin, Y., & Cheng, X. (2022). The Financial Effect of Firm Digitalization: Evidence from China. Technological Forecasting and Social Change, 183(6). https://doi.org/10.1016/j.techfore.2022.121951.
Zhang, J., & Wang, M. (2023). Does Environmental Information Disclosure Drive Corporate Sustainable Growth? A New Insight into U-shaped Relationship. Frontiers in Ecology and Evolution, 11, 1-14. https://doi.org/10.3389/fevo.2023.1189052.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Midhatul Khasanah, Sri Pujiningsih, Puji Handayati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
