Corporate Sustainability Reporting Performance in Vietnam and Indonesia in Banking Sector: Social Disclosure and Its Relation to Corporate Governance

DOI

10.2991/aebmr.k.211119.053How to use a DOI?

Keywords

Corporate social responsibility; Corporate sustainability reporting GRI-G4; banking sectors; Vietnam; Indonesia

Abstract

Purposes: This study attempts to evaluate corporate sustainability reporting performance of banks in Vietnam and Indonesia based on a framework developed by Global Sustainability Standard Board, namely General Reporting Initiatives G4 and its relation to corporate governance.

Research motivation: Prior studies found out that corporate governance significantly affects CSRE performance. Therefore, it is important to identify corporate governance configuration leading to high CSRE performance.

Research design, approach and method: First, a systematic scoring method was employed to evaluate CSR performance of 13 listed banks in Vietnam and 12 Islamic banks in Indonesia from 2014 to 2018. Secondly, relationships between corporate sustainability reporting performance and corporate governance are investigated by employing Qualitative Comparative Analysis (QCA). The uniqueness of QCA compared to other quantitative methods is that this method focusing on configuration of factors affecting CSRE performance rather than the extent to which each individual factor affecting CSRE performance.

Main findings: The first findings of the study show ranking on CSRE performance of banks in Vietnam and Indonesia from 2014 to 2018. In addition, the results report improvement and deterioration of the banks.

Concerning the effects of corporate governance on CSRE performance, the study finds three configurations or three causal paths that lead to high CSRE performance in Vietnam and Indonesia. In Indonesia, two configurations highlights the presence of board independence and large Board of Director (BOD) size as two important corporate governance variables resulting in high CSRE performance of Islamic banks. In Vietnam, listed banks achieve high CSRE performance only when seven corporate governance variables, namely large BOD size, board independence, female chairman, BOD nationality diversity, BOD gender diversity, firm age and external audit reputation, are presented.

Implications: The study on ranking, improvement or deterioration of CSRE performance of banks in Vietnam and Indonesia benefit banks themselves. Firstly, the research findings enable banks in Vietnam and Indonesia to make further enhancement in CSRE performance. Secondly, the banks can focus on certain corporate governance variables to ensure their high performance on CSRE. Last but not least, the results provide investors and other stakeholder’s additional information to make more informed decisions related banks, especially when banks are listed on the Stock Exchange.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Nguyen Thi Kim OANH
AU  - Nguyen Van DINH
AU  - Tran Thi Minh ANH
PY  - 2021
DA  - 2021/12/07
TI  - Corporate Sustainability Reporting Performance in Vietnam and Indonesia in Banking Sector: Social Disclosure and Its Relation to Corporate Governance
BT  - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)
PB  - Atlantis Press
SP  - 596
EP  - 613
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.211119.053
DO  - 10.2991/aebmr.k.211119.053
ID  - OANH2021
ER  -