Rachma Bhakti Utami, Rashid Ating
The demand for sustainability reports has risen recently as stakeholders increasingly concern themselves with sustainable business practices. This research aims to analyze the role of CEOs’ Social Networks and Corporate Governance in promoting Sustainability Report Disclosures, especially in the banking sector. Using the Global Reporting Initiative (GRI) standard reference for Sustainability Reports, this research compares two countries, Indonesia and Malaysia, from 2017 to 2022. This quantitative study employs content analysis and multivariate analysis through structural equation modeling (SEM). To facilitate the comparison between Indonesia and Malaysia, this study employs PLS-Multigroup with the help of WarpPLS software. In this study, the independent variables consist of CEOs’ social networks and corporate governance, whereas the dependent variable is Sustainable Banking, operationalized through the quality of sustainability reports. The hypothesized influence in this study is grounded in the Resource-Based View. The results indicate that Indonesian banks score higher in terms of sustainability report disclosures on economic and environmental indicators. Furthermore, Corporate Governance significantly affects sustainable banking, while the CEOs’ social networks have a significant effect when tested on combined models from Indonesia and Malaysia. All papers are published under the Creative Commons Attribution 4.0 International (CC BY 4.0). For more details, visit https://creativecommons.org/licenses/by-nc/4.0/.
Department of Business Administration, Politeknik Negeri Malang, Indonesia; Department of Primary Care Medicine, Faculty of Medicine, Universiti Malaya, Malaysia