Can substantive CSR or symbolic ISO 14001 drive real environmental performance in Indonesian manufacturing?

Abstract

This study aims to provide empirical evidence of the influence of Corporate Social Responsibility (CSR) and Green Innovation on Actual Environmental Performance (EP) with Environmental Disclosure Quality (EDQ) as a mediating variable. The population for this study comprises manufacturing companies listed on the Indonesia Stock Exchange (IDX) for the 2021-2024 period. This study uses purposive sampling. The sample consists of companies that routinely issue GRI-compliant disclosures and have PROPER scores, yielding 284 firm-year observations. The study's results show that CSR has no direct effect on EP but significantly improves EDQ, indicating that transparency serves as a complete mediating mechanism, transforming ethical commitments into concrete performance outcomes. The study's results further show that Green Innovation (ISO 14001) fails to affect disclosure quality or performance, indicating that technology adoption remains largely symbolic. Validating quality reporting beyond mere compliance is essential for regulators to reduce the risk of greenwashing.