FACTORS AFFECTING SUSTAINABILITY QUALITY STANDARD OF MANUFACTURE AND BANKING COMPANY IN INDONESIA

Abstrak

This study investigates the factors influencing the quality of sustainability report implementation based on the Global Reporting Initiative (GRI) Standards among manufacturing and banking companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. The growing expectation for transparency and accountability in corporations has encouraged companies to release sustainability reports.; however, differences in governance capacity and industry characteristics often lead to inconsistent reporting quality. This study contributes to the literature by integrating legitimacy theory and stakeholder theory to explain how corporate governance mechanisms and firm characteristics affect sustainability disclosure. Using a quantitative approach with purposive sampling, 137 companies were selected as research samples. Multiple regression analysis was employed to examine the effects of Industry Type, Board of Commissioners’ Effectiveness, and Firm Size on Sustainability Report Quality (SRQ). The results show that Industry Type does not significantly influence SRQ, whereas Board of Commissioners’ Effectiveness and Firm Size both have significant positive effects. The results suggest that companies with stronger board effectiveness and greater operational capacity tend to generate more thorough and reliable sustainability reports.. This study highlights the importance of strengthening governance oversight and adopting GRI Standards as a strategic communication tool rather than merely a compliance requirement. The findings offer important insights for regulators, corporations, and academics aiming to improve the quality and trustworthiness of sustainability reporting in Indonesia