Relationship Between Good Corporate Governance and Social Responsibility Disclosure

Abstract

Although good corporate governance and corporate social responsibility (CSR) have been widely studied, a question remains relevant; why there is a relationship between them, as CSR is influenced by choices, motives, and values of people involving in formulating and taking decisions within organizations, consideration of corporate governance mechanisms, in particular, ownership structure and composition of the board of directors, and board of commissioners. The aim of this was to investigate the relationship between Corporate Governance and Corporate Social Responsibility (CSR). The samples were 23 companies listed in Corporate Social Responsibility Disclosure Index (CGPI) during 2009–2013. The variables used in this study were the number of audit committee, public ownership, foreign ownership, proportion of independent commissioner, and the disclosure of CSR. The Result of this study showed that the number of audit committee have a significant impact on the disclosure of CSR. Keywords: Audit Committee; Corporate Social Responsibility (CSR); Corporate Social Responsibility Disclosure Index (CSRI); Good Corporate Governance; Ownership