THE EFFECT OF EMPLOYEE, SHAREHOLDER, MEDIA, AND CREDITOR ENGAGEMENT ON QUALITY OF SUSTAINABILITY REPORTING IN INDONESIA

Abstract

This study aims to analyze the effect of employee engagement, shareholder engagement, media engagement, and creditor engagement on quality of sustainability reporting in Indonesia. The population on this study, companies in the energy, industrial, and consumer non-cyclicals sectors in Indonesia, which are listed on the Indonesia Stock Exchange (IDX) from 2019 to 2022 period. Purposive sampling is a technique used in order to obtain a sample of 104 units of analysis. The method of collecting information used in this examination is the content analysis technique. According to (Erin, Adegboye, & Bamigboye, 2022), this research offer SRQ measures from scoring 1-4 how confidently sustainability reporting is verified by an external audit assurance. This research determines whether an audit committee is involved in reporting on sustainability. The result showed that employee engagement, media engagement had no effect on quality of sustainability reporting in Indonesia. Meanwhile, the result showed that shareholder’s engagement and creditor’s engagement had effect on quality of sustainability reporting in Indonesia. Based on the research, shareholders respond to the exposure of energized sustainability reporting from monetary markets to build shareholders' level of certainty by expanding the level of reports. Limitations of this research that only focuses on one measurement, namely how much stakeholder involvement variables are mentioned in the sustainability report. For future research expected to use more or other than stakeholders.