Sustainability committee as a moderator in the effect of materiality disclosure and stakeholder engagement on sustainability reporting quality
Keywords:
sustainability committee, materiality disclosure, stakeholder engagement disclosure, sustainability reporting qualityAbstract
This study aims to examine the effect of Materiality Disclosure and Stakeholder Engagement on the quality of sustainability reporting, as well as to investigate the moderating role of the Sustainability Committee. The theoretical framework is based on Stakeholder Theory and Legitimacy Theory. The population of this study includes all energy sector companies listed on the Indonesia Stock Exchange for the period 2021–2023. The sample was selected using a purposive sampling method, resulting in 50 companies that met the criteria. With a three-year observation period, the total number of observations is 150. Data were analyzed using moderation regression techniques with SPSS software. The results indicate that Materiality Disclosure, Stakeholder Engagement Disclosure, and the Sustainability Committee have a positive influence on the quality of sustainability reporting. Moreover, the Sustainability Committee acts as a quasi-moderator that strengthens the influence of both Materiality Disclosure and Stakeholder Engagement Disclosure on sustainability reporting quality. The findings highlight the importance of the Sustainability Committee as a governance mechanism to enhance the quality of sustainability reporting, and serve as a reference for regulators and companies in promoting more transparent and accountable reporting practices.
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