Indonesia's low concern for labour issues

Purpose: This study aims to advance explanations of the communication level of labor disclosures of Indonesian listed companies. Design/methodology/approach: Year-ending 2007 Annual report disclosures of 223 Indonesia Stock Exchange (IDX) listed companies are analyzed. The labor practices and decent...

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Main Authors: Cahaya, F., Porter, Stacey, Tower, G., Brown, Alistair
Format: Journal Article
Published: Emerald Group Publishing Ltd 2012
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/8569
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author Cahaya, F.
Porter, Stacey
Tower, G.
Brown, Alistair
author_facet Cahaya, F.
Porter, Stacey
Tower, G.
Brown, Alistair
author_sort Cahaya, F.
building Curtin Institutional Repository
collection Online Access
description Purpose: This study aims to advance explanations of the communication level of labor disclosures of Indonesian listed companies. Design/methodology/approach: Year-ending 2007 Annual report disclosures of 223 Indonesia Stock Exchange (IDX) listed companies are analyzed. The labor practices and decent work disclosure component of the 2006 Global Reporting Initiative (GRI) guidelines are used as the benchmark disclosure index checklist. Findings: The results show a low level of voluntary disclosure (17.7 per cent). The highest level of communication is for issues related to skills management and lifelong learning programs for employees. Very few companies disclosed information about health and safety committee and agreements, and salary of men to women. Statistical analysis reveals that government ownership and international operations are positively significant predictors of ‘‘labour’’ communication. Isomorphic institutional theory partially explains the variability of these disclosures. Bigger companies also provide more labor practices and decent work disclosures. Research limitations/implications: The main implications of the findings are that Indonesian companies are not clearly communicating labor responsibility issues as a key precondition of corporate social responsibility (CSR). They may be obfuscating some information to protect their image and reputation. Originality/value: This paper provides insights into the disclosure practices of labor issues, a specific social disclosure theme which is rarely examined in prior literature, under the umbrella of institutional theory. The research also includes ‘‘goal factor’’ to be tested as one of the independent variables.
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institution Curtin University Malaysia
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publishDate 2012
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spelling curtin-20.500.11937-85692017-09-13T16:06:55Z Indonesia's low concern for labour issues Cahaya, F. Porter, Stacey Tower, G. Brown, Alistair developing countries communication Indonesia social accounting institutional theory global reporting initiative Purpose: This study aims to advance explanations of the communication level of labor disclosures of Indonesian listed companies. Design/methodology/approach: Year-ending 2007 Annual report disclosures of 223 Indonesia Stock Exchange (IDX) listed companies are analyzed. The labor practices and decent work disclosure component of the 2006 Global Reporting Initiative (GRI) guidelines are used as the benchmark disclosure index checklist. Findings: The results show a low level of voluntary disclosure (17.7 per cent). The highest level of communication is for issues related to skills management and lifelong learning programs for employees. Very few companies disclosed information about health and safety committee and agreements, and salary of men to women. Statistical analysis reveals that government ownership and international operations are positively significant predictors of ‘‘labour’’ communication. Isomorphic institutional theory partially explains the variability of these disclosures. Bigger companies also provide more labor practices and decent work disclosures. Research limitations/implications: The main implications of the findings are that Indonesian companies are not clearly communicating labor responsibility issues as a key precondition of corporate social responsibility (CSR). They may be obfuscating some information to protect their image and reputation. Originality/value: This paper provides insights into the disclosure practices of labor issues, a specific social disclosure theme which is rarely examined in prior literature, under the umbrella of institutional theory. The research also includes ‘‘goal factor’’ to be tested as one of the independent variables. 2012 Journal Article http://hdl.handle.net/20.500.11937/8569 10.1108/17471111211196610 Emerald Group Publishing Ltd fulltext
spellingShingle developing countries
communication
Indonesia
social accounting
institutional theory
global reporting initiative
Cahaya, F.
Porter, Stacey
Tower, G.
Brown, Alistair
Indonesia's low concern for labour issues
title Indonesia's low concern for labour issues
title_full Indonesia's low concern for labour issues
title_fullStr Indonesia's low concern for labour issues
title_full_unstemmed Indonesia's low concern for labour issues
title_short Indonesia's low concern for labour issues
title_sort indonesia's low concern for labour issues
topic developing countries
communication
Indonesia
social accounting
institutional theory
global reporting initiative
url http://hdl.handle.net/20.500.11937/8569