The Effect of Profitability, Leverage, And Audit Committee on Corporate Social Responsibility Disclosure (Empirical Study on Basic Material Sector Companies Listed on the Indonesia Stock Exchange for the Period 2021-2024)

Abstract

Corporate Social Responsibility Disclosure (CSRD) is a form of corporate responsibility in disclosing social and environmental information to stakeholders. This study aims to examine the effect of profitability, leverage, and audit committee on corporate social responsibility disclosure in basic materials sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period. A quantitative research approach was employed using secondary data obtained from companies’ annual reports and sustainability reports. The sample was selected through purposive sampling, resulting in 25 companies with a total of 100 firm-year observations. Corporate social responsibility disclosure was measured using a disclosure index based on internationally recognized sustainability reporting standards. The data were analyzed using multiple linear regression to evaluate the relationship between the independent variables and corporate social responsibility disclosure. The findings indicate that profitability and leverage do not have a significant effect on corporate social responsibility disclosure. In contrast, the audit committee has a positive and significant effect on corporate social responsibility disclosure. These results suggest that the effectiveness of the audit committee’s oversight function plays an important role in encouraging companies to improve the transparency of their social and environmental information. Therefore, the study concludes that the audit committee is a more influential factor in enhancing corporate social responsibility disclosure than profitability and leverage in basic materials sector companies listed on the Indonesia Stock Exchange during the 2021–2024 period.