Natasya Insani, Deni Hamdani, Ulilla Ulayya

CORPORATE SOCIAL RESPONSIBILITY DISCLOSURE IN MINING SECTOR : A FINANCIAL PERFORMANCE APPROACH

Introduction

Corporate social responsibility disclosure in mining sector : a financial performance approach. Explore CSR disclosure in the mining sector. This study quantifies how public share ownership, debt-equity ratio, and company size significantly influence corporate social responsibility disclosure.

Abstract

Obtaining the greatest profit or profit with the fewest expenses is the primary objective of any business. Companies frequently ignore the effects of their operations in the workplace, such as the social and environmental repercussions that lead to interpersonal disputes. Consequently, locals frequently express their displeasure with the company's administration through protests and rallies. With a focus on mining businesses, this study seeks to demonstrate the partial and simultaneous influence of public share ownership, debt to equity ratio, company size, and net profit margin on CSR disclosure. A quantitative technique combining a descriptive and verification methodology was employed in this study. Multiple linear regression analysis was used for the statistical testing; at a significance level of 0.05, the f-test and the t-test were used to evaluate simultaneous effects and partial effects, respectively. The findings, It has been demonstrated through statistical testing that public shareholders, debt to equity ratio and company size has significantly and favourably affects corporate social responsibility disclosure. It has been only net profit margin has little bearing on corporate social responsibility disclosure. Simultaneous, firm size, net profit margin, debt-to-equity ratio, and public shareholders affect corporate social responsibility disclosure.

Review

This study investigates a crucial topic concerning Corporate Social Responsibility (CSR) disclosure within the often-controversial mining sector, framing its analysis through a financial performance approach. Given the significant social and environmental impact associated with mining operations, understanding the drivers behind companies' willingness to disclose their CSR initiatives is highly relevant and timely. The paper's stated objective to demonstrate the partial and simultaneous influence of public share ownership, debt to equity ratio, company size, and net profit margin on CSR disclosure in this specific industry addresses a pertinent gap in the literature, offering insights into the factors that compel or deter transparency in a sector under intense public scrutiny. Methodologically, the study employs a quantitative approach, combining descriptive and verification methodologies, which is appropriate for testing the hypothesized relationships. The use of multiple linear regression analysis, supported by f-tests for simultaneous effects and t-tests for partial effects at a 0.05 significance level, provides a robust statistical framework for examining these influences. The findings are illuminating: public share ownership, debt to equity ratio, and company size are statistically demonstrated to have a significant and favorable effect on CSR disclosure. Interestingly, net profit margin is found to have little bearing, suggesting that while certain financial and structural characteristics drive disclosure, the immediate profitability metric might not be a primary determinant. The simultaneous effect of all examined variables on CSR disclosure further strengthens the overall conclusion. While the abstract presents compelling findings and a clear methodology, a full review would benefit from more detail regarding the operationalization of CSR disclosure (e.g., content analysis of reports, specific indices), the sample characteristics (number of companies, geographic scope, time period), and the data sources. Nonetheless, the study makes a valuable contribution by empirically identifying key drivers of CSR disclosure in the mining sector, providing a foundation for understanding how corporate governance structures, financial leverage, and organizational scale correlate with transparency practices. The finding regarding net profit margin particularly invites further exploration into the complex motivations behind CSR reporting, highlighting that strategic considerations beyond immediate financial performance may be at play.

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