Unveiling The Drivers Of SDGS 8 Disclosure: Evidence From Governance, Firm Characteristics, And Strategic Factors In Indonesian Listed Firms

The issue of decent work (SDG 8) which includes fair wages, safe working conditions, social protection, and workers’ rights has gained increasing attention in corporate sustainability reporting, especially as global expectations for transparency and accountability continue to rise. This study aims to uncover the internal factors that drive Decent Work Disclosure (DWD) among non-financial companies listed on the Indonesia Stock Exchange (IDX) over the 2019–2023 period. The analysis focuses on three categories of variables: governance mechanisms, firm characteristics, and strategic factors. Specifically, the variables examined include corporate governance, gender diversity, firm size, profitability, leverage, asset growth, and cost leadership strategy. A purposive sampling method was applied to select 28 companies, resulting in a balanced panel of 140 firm-year observations. Panel data regression was conducted using Stata version 18. The results indicate that corporate governance has a negative effect on DWD, while firm size, leverage, and cost leadership strategy show positive effects. Meanwhile, gender diversity, profitability, and asset growth exhibit minimal influence. These findings provide empirical insight into how internal company dynamics shape social disclosure behavior, particularly in the Indonesian context. The study highlights that structural and strategic considerations may be more prominent drivers of DWD than formal governance practices, challenging some conventional theoretical expectations. This research contributes to the growing literature on labor-related sustainability disclosures in emerging markets and offers practical implications for firms and policymakers seeking to improve SDG 8 transparency. Future research is recommended to incorporate moderating factors such as company age or ownership structure to explore more nuanced relationships in corporate sustainability behavior.

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Publication Details

Journal
American Journal of Economic and Management Business (AJEMB)
Published
2025-10-02
DOI
https://doi.org/10.58631/ajemb.v4i10.319
Primary Topic
Auditing, Earnings Management, Governance
Type
article
Field-Weighted Citation Impact
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article

Unveiling The Drivers Of SDGS 8 Disclosure: Evidence From Governance, Firm Characteristics, And Strategic Factors In Indonesian Listed Firms

Majidah Majidah, Nunik Nurnaningsih
American Journal of Economic and Management Business (AJEMB)
Auditing, Earnings Management, Governance
article

Unveiling The Drivers Of SDGS 8 Disclosure: Evidence From Governance, Firm Characteristics, And Strategic Factors In Indonesian Listed Firms

Majidah Majidah, Nunik Nurnaningsih
article en

Abstract

The issue of decent work (SDG 8) which includes fair wages, safe working conditions, social protection, and workers’ rights has gained increasing attention in corporate sustainability reporting, especially as global expectations for transparency and accountability continue to rise. This study aims to uncover the internal factors that drive Decent Work Disclosure (DWD) among non-financial companies listed on the Indonesia Stock Exchange (IDX) over the 2019–2023 period. The analysis focuses on three categories of variables: governance mechanisms, firm characteristics, and strategic factors. Specifically, the variables examined include corporate governance, gender diversity, firm size, profitability, leverage, asset growth, and cost leadership strategy. A purposive sampling method was applied to select 28 companies, resulting in a balanced panel of 140 firm-year observations. Panel data regression was conducted using Stata version 18. The results indicate that corporate governance has a negative effect on DWD, while firm size, leverage, and cost leadership strategy show positive effects. Meanwhile, gender diversity, profitability, and asset growth exhibit minimal influence. These findings provide empirical insight into how internal company dynamics shape social disclosure behavior, particularly in the Indonesian context. The study highlights that structural and strategic considerations may be more prominent drivers of DWD than formal governance practices, challenging some conventional theoretical expectations. This research contributes to the growing literature on labor-related sustainability disclosures in emerging markets and offers practical implications for firms and policymakers seeking to improve SDG 8 transparency. Future research is recommended to incorporate moderating factors such as company age or ownership structure to explore more nuanced relationships in corporate sustainability behavior.

American Journal of Economic and Management Business (AJEMB)Vol. 4(10)
Telkom University (ID)
Openalex Percentile: Top 61%
Auditing, Earnings Management, Governance
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Unveiling The Drivers Of SDGS 8 Disclosure: Evidence From Governance, Firm Characteristics, And Strategic Factors In Indonesian Listed Firms — Majidah Majidah, Nunik Nurnaningsih · American Journal of Economic and Management Business (AJEMB) (2025) | TGRS Research Map | TGRS