Examining the Relationship Between Foreign Ownership, Environmental Performance, Firm Size, and Corporate Social Responsibility Disclosure

Abstract

Many companies often overlook their social responsibility, failing to recognize its
crucial role in enhancing their reputation. In the current corporate landscape,
companies are increasingly focusing on capital development while also
addressing environmental concerns. Greater attention is being directed toward
the surrounding environment, as it can significantly influence corporate
operations and outcomes. This study aims to evaluate the relationship between
foreign ownership, environmental performance, and firm size with the disclosure
of Corporate Social Responsibility (CSR). The research targets manufacturing
companies listed on the Indonesia Stock Exchange (IDX) during the 2023 period.
A total of 40 samples were selected using the purposive sampling method. The
data analysis was conducted using multiple linear regression, employing SPSS as
the analytical tool. The findings indicate that foreign ownership does not have a
significant effect on CSR disclosure. Similarly, firm size is not significantly
associated with CSR disclosure. However, environmental performance
demonstrates a significant influence on the scope of CSR disclosure. These results
suggest that companies should prioritize environmental performance as a key
driver of CSR initiatives. This study underscores the importance of Corporate
Social Responsibility as a means for businesses to positively engage with and
influence their surrounding environment.