Title: The effect of consumer proximity and media exposure on corporate social responsibility disclosure

Authors: Hans Hananto Andreas; Ming Lei Chang

Addresses: College of Business, Chung Yuan Christian University, Taiwan; Department of Accounting, Faculty of Economic and Business, Satya Wacana Christian University, Indonesia ' Department of Accounting, College of Business, Chung Yuan Christian University, Taiwan

Abstract: The purpose of this study is to determine the effect of consumer proximity and media exposure on corporate social responsibility (CSR) disclosure at several sector companies listed on the Indonesian Stock Exchange. We use companies on the sectors of food and beverages, mining, and properties listed on the Indonesian Stock Exchange in 2017. We find that consumer proximity and media exposure had a positive effect on CSR disclosure, and control variables of company leverage and size had similar positive effects. Overall, our results indicate that the closeness of the company with consumers indirectly formed by its products can make companies give more disclosure of their CSR activities. Then, media exposure is proved to have significant effect on the CSR disclosure of the companies. It drives the companies to give information to all stakeholders about their business decision making. This research demonstrates that consumer proximity can make a company more disclosure of their CSR activities. Then, the important role from the media can give information about their business decision making as information to stakeholders.

Keywords: consumer proximity; media exposure; corporate social responsibility; CSR.

DOI: 10.1504/IJSSS.2021.115862

International Journal of Society Systems Science, 2021 Vol.13 No.1, pp.46 - 58

Received: 02 Nov 2020
Accepted: 23 Nov 2020
Published online: 25 Jun 2021 *