PERAN PENTING CORPORATE GOVERNANCE DALAM PENENTUAN PRIORITAS SDGS MELALUI ANALISIS PENERAPAN PRINSIP 5 P

Abstract

The purpose of this study is to empirically examine and analyze the effect of Corporate Governance (CG) on the prioritization of the Sustainable Development Goals (SDGs) among companies in Indonesia. This research focuses on 93 companies listed on the Indonesia Stock Exchange (IDX) in 2023. The results indicate that Corporate Governance Structure has a positive and significant effect on SDG prioritization. This finding suggests that sound Corporate Governance practices such as board independence, diversity in board members’ educational backgrounds, the existence of a CSR committee, and effective monitoring mechanisms can encourage companies to determine relevant and strategic SDG priorities. Financial Performance does not have a significant effect on SDG prioritization. Furthermore, the results also reveal that Corporate Governance Structure does not have a significant effect on SDG prioritization when mediated by Financial Performance. This study provides empirical contributions to the literature by enriching the understanding of the relationship between Corporate Governance, Financial Performance, and SDG implementation in the context of a developing country. Practically, the findings may serve as a reference for companies and regulators in strengthening governance practices oriented toward sustainability. Keywords: Sustainable Development Goals (SDGs), SDG prioritisation, Emerging economies, 2030 agenda, Corporate Governance, Financial Performanc