DO GEN X DIRECTORS HAVE DIFFERENT INFLUENCE ON THE CSR PERFORMANCE? A CASE OF ESG LEADER COMPANIES IN INDONESIA

• Main Author: Recta Regitya, Rahassanti
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67771
• Institution: Institut Teknologi Bandung

In 2020, Indonesian government started to encourage all Indonesian companies to implement some regulations to protect the environment and its society by following the ESG (Environment, Social, Governance) principles. Those companies that implement an excellent ESG activities are listed as an ESG Leaders (ESGL) companies in Indonesian Stock Exchange (IDX). To make such a responsible decision, companies started to take their attention on their board of directors’ compositions, one of which is the generational differences. Generation X directors have been found that they have better concentration on the ESG consciousness than other generations, it is because they have their unique ways of thinking and behaviour. However, there is no literature that analyzing the Gen X directors’ differences in contributing on the Corporate Social Responsibility (CSR) performance of an ESGL listed companies. In this study, the author will observe four kinds of CSR performance measurements by adopting some independent and control variables: the total amount of Gen X directors, board size, company’s profitability and financial leverage, director’s gender, and the CEO duality. The data used is a cross sectional data that the author took from the corporate’s documents in 2021. By using a multiple linear regression analysis, the author found that the contribution of Gen X directors on ESGL listed companies will have a significant effect on the company’s CSR performance in terms of making a better decision in using CSR Standardization or the ISO26000. And have an insignificant effect on the ESG Ratings, Global Reporting Initiatives (GRI) Indexes Measurements, and CSR Expenses.