Maximizing Social Responsibility Disclosure and Leverage for Firm Performance: A Humanist Approach to Public SOEs

Abstract

With a humanist approach, this study aims to analyze the effects social responsibility disclosure and leverage on the firm performance in public State-Owned Enterprises (SOEs). Its goal is to investigate the role of ethical business practices, corporate governance, and financial strategies for sustainable performance. A quantitative research design using secondary data of publicly listed Indonesian SOEs. Empirical results reveal that corporation ethics and corporate governance have strongly contributed to improving firm performance while, CSR disclosure fails to have direct financial contributions in public SOEs. According to this research, public SOEs are more likely to be closely monitored by regulatory environments and aligned with social objectives than with profitability, and CSR initiatives are translated into business efficiency that depends on institutional context. Those studies have never integrated the humanist thought in the corporate governance cookie, particularly concerning public SOEs where financial sustainability and social responsibility serve as two pillars of corporate governance. It offers fresh perspectives on the intricate relationship among CSR disclosure, leverage, and corporate performance in enterprises with government ownership. This academic paper suggests that CSR should be strategically integrated into the business, aligning social and environmental objectives with financial performance. This presentation provides insights that will be useful for area policymakers, investors, and corporate leaders; particularly in achieving a governance structure that will optimize public SOE economic and social returns.