The effect of employee pressure, company activities, and company characteristics on sustainability report disclosure with the audit committee as a moderation

Abstract

The sustainability report reflects a company's social, economic, and environmental responsibilities, serving as a medium to communicate performance to stakeholders. However, not all companies fully optimize their sustainability disclosures. This study examines the effect of employee pressure, corporate activities, and firm characteristics on sustainability report disclosure, with the audit committee serving as a moderating variable. The study population includes non-financial companies listed on the Indonesia Stock Exchange (IDX) for 2020–2022. A total of 64 companies were selected as the research sample using purposive sampling. Data were analyzed using descriptive statistics and hypothesis testing through path analysis with the assistance of SmartPLS 3.0 software. The results indicate that employee pressure and firm characteristics do not significantly influence sustainability report disclosure, whereas corporate activities have a significant effect. The audit committee does not moderate the relationship between employee pressure, corporate activities, or sustainability disclosure. However, it strengthens the influence of firm characteristics on sustainability report disclosure.