Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 Using Social Media as A Legitimation Tool in Sustainability Reporting:
Evidence from SOEs Listed on the Indonesia Stock Exchange Arif Rahmansyah1.
Ratna Mulyany2*.
Teuku Aulia Geumpana3 Department of Accounting.
Faculty of Economics and Business.
Universitas Syiah Kuala.
Banda Aceh.
Indonesia Discipline of Computing and IT.
School of Information and Physical Sciences.
University of Newcastle.
Callaghan.
Australia *Corresponding author: ummuhaziq@usk.
https://dx.
org/ 10.
24815/jdab.
ARTICLE INFO
ABSTRACT
Article history:
The use of social media changes the dynamics of reporting, leading to interactive communication processes where dialogue and engagement with stakeholders can be used to accompany disclosure of information to seek legitimacy.
The purpose of this study is to determine the use of social media in the sustainability report in state owned enterprises (SOE.
listed on the Indonesia Stock Exchange as a means of seeking legitimacy from The data obtained can be parsed, checked, and compared with open coding .
pen codin.
The results of data processing are displayed in excel spreadsheet, and processed into diagrams and tables.
The results of this study indicate that social media allows companies to build a dialogue about current issues that affect society and the The issues raised on social media by companies from the three platforms mostly consist of community, employees, diversity, gender equality, health, and corruption The findings implicate that social media has been largely used even by SOEs as a legitimation tool for its stakeholders in constructing a dialogue regarding current issues affecting people and the environment.
Received date: 24 August 2022 Received in revised form: 07 June 2023 Accepted: 15 June 2023 Available online: 24 August 2023 Keywords:
Instagram, legitimacy.
LinkedIn, social media, stakeholders, sustainability reporting.
Twitter Penggunaan Media Sosial sebagai Alat Legitimasi dalam Pelaporan Keberlanjutan:
Studi pada Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia Citation:
Rahmansyah.
Mulyany.
, & Geumpana, , .
Using Social Media as A Legitimation Tool in Sustainability Reporting:
Evidence from SOEs Listed on the Indonesia Stock Exchange.
Jurnal Dinamika Akuntansi dan Bisnis, 10 .
, 249 Ae 264 Kata Kunci:
Instagram, legitimasi.
LinkedIn, media sosial, keberlanjutan, twitter
ABSTRAK
Penggunaan media sosial mengubah dinamika pemberitaan, mengarah pada proses komunikasi interaktif di mana dialog dan keterlibatan dengan pemangku kepentingan dapat digunakan untuk mengiringi pengungkapan informasi untuk mencari legitimasi.
Tujuan penelitian ini adalah untuk mengetahui penggunaan media sosial dalam Laporan Keberlanjutan pada perusahaan BUMN yang terdaftar di Bursa Efek Indonesia sebagai sarana mencari legitimasi dari pemangku kepentingan.
Data yang diperoleh dapat diurai, diperiksa, dan dibandingkan dengan pengkodean terbuka .
pen codin.
Hasil pengolahan data ditampilkan dalam excel spreadsheet, dan diolah menjadi diagram dan tabel.
Hasil penelitian ini menunjukkan bahwa media sosial memungkinkan perusahaan membangun dialog tentang isu-isu terkini yang mempengaruhi masyarakat dan lingkungan.
Isu yang diangkat di media sosial oleh perusahaan dari ketiga platform tersebut sebagian besar terdiri dari isu komunitas, karyawan, keragaman, kesetaraan gender, kesehatan, dan Temuan ini berimplikasi bahwa media sosial telah banyak digunakan bahkan oleh perusahaan milik negara sebagai alat legitimasi bagi para pemangku kepentingannya dalam membangun dialog mengenai isu-isu terkini yang mempengaruhi masyarakat dan Introduction The rapid development of business activities often results in the exploitation of natural resources on a large scale, causing environmental damage.
The problem of environmental damage is one of the impacts caused by company's management decisions with shareholders (Lestari & Suardana, 2.
Based on the theory of legitimacy, companies will Rahmansyah.
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The legitimacy of the company will be in jeopardy if it does not uphold values that are consistent with the restrictions and standards that are in place in the neighborhood where it is located, whether the resulting distinctions are actual or hypothetical (Natalia & Soenarno, 2.
According to legitimacy theory, businesses enter into agreements with societies to carry out their business based on the principles of justice and how they respond to various interest groups to justify their actions (Badjuri & Kartika, 2.
To solve this issue and maintain long-term profitability, businesses need to be able to entail all Stakeholders essentially have the power to influence how the company uses its financial resources (Carroll & Shabana, 2.
Therefore, the company has to be able to build positive stakeholder relationships by fulfilling their needs when stakeholders control significant economic company's resources (Natalia & Soenarno.
Stakeholders basically have the ability to influence the use of economic resources used by Therefore, when stakeholders control important economic resources for the company, the company must be able to establish good relationships with stakeholders by satisfying stakeholder desires (Natalia & Soenarno, 2.
Likewise, with the formulation of a strategy that must be translated into a strategy into action.
Strategic planning processes tend to focus on environmental analysis or competency analysis, or a combination of the two (Bowen et al.
, 2.
which is important for the company, the company must be able to establish good relations with stakeholders by satisfying the wishes of stakeholders (Natalia & Soenarno, 2.
Likewise, with the formulation of a strategy that must be translated into a strategy into action.
Strategic planning processes tend to focus on environmental analysis or competency analysis, or a combination of the two (Bowen et al.
, 2.
In the contemporary time, stakeholders can find out and monitor the activities carried out by the company through social media communication, hence they can assess and influence the company's According to a recent report, the social media users around the world reached 4.
54 billion with an increase of 7% per year, that shows that the rate of acceptability and importance of social media is unmatched as compared to its counterpart, the conventional media (Cheng et al.
, 2.
Using social media can create new possibilities for companies to engage in conversations with their stakeholders and receive real-time feedback about company activities, so that it can be used as a new legitimacy tool for companies (Manetti et al.
, 2.
This is consistent with the statement of Adianto et al.
, .
Legitimacy is a broad assumption or perspective that an entity's actions are desirable, coherent, or consistent with a set of societal norms, values, perceptions, and definitions.
So, to stay afloat, companies seek some kind of legitimacy or recognition from investors, creditors, consumers, governments, and the surrounding community.
gain legitimacy from investors, the company continues to increase stock returns for investors.
Social media communication is the use of the latest application-based technology to facilitate organizations, countries and the world.
This technology has embraced its own patent by creating an online community (Matas-Terryn et al.
, 2.
Social media has formed a unique view on a borderless world as there are no gulfs in global Communication using social media in the workplace, this technology has a perspective of positive and negative consequences .
an Zoonen et , 2.
Social media is an open and publicoriented system.
Therefore, its use definitely has advantages and disadvantages.
The use of social media also has an impact on the performance and practices of an organization.
Currently, many Rahmansyah.
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, 2.
Social media, which is emerging as a new mode of communication, is among the newest legitimacy tools for businesses (Charoensukmongkol & Sasatanun, 2.
Social media uses mobile and web-based technologies to create highly interactive platforms where individuals and communities share, create, discuss, and modify user-generated content (Lodhia et al.
, 2.
Social media communication is the use of the latest application-based technology to facilitate connectivity between individuals, groups, organizations, countries, and the world.
This technology has embraced its own patents by creating an online community.
Organizations can now engage in discussions to oneAos interested parties on social media and get immediate feedback on their general organizational announcements (Manetti et al.
, 2.
With the help of web-based and social media application areas, this development has transformed the way social and environmental information is disseminated from a one-way transmission interconnection model in the form of annual reports and sustainability reports to linked systems communication (Reilly & Hynan.
Studies have looked into how businesses use social media to achieve two main objectives, reporting on sustainable development issues and impacts, and engaging stakeholders on issues that affect them using media features (Lodhia et al.
Reilly & Hynan .
looked at Facebook.
Twitter, and sustainability reports from 16 international companies to evaluate the scope and content of social media as a tool for corporate Businesses that are environmentally friendly report more sustainability information than nongreen businesses, and they use social media significantly more frequently.
Manetti et al.
, .
examined the material on official Twitter.
Facebook, and YouTube pages of international businesses to determine whether they employ social media as a stakeholder engagement tool for sustainability examined the material on official Twitter.
Facebook, and YouTube pages of international businesses to determine whether they employ social media as a stakeholder engagement tool for corporate sustainability.
This study for instance aims to examine the use of social media in the sustainability report of state owned enterprises (SOE.
companies listed on the Indonesia Stock Exchange in seeking legitimacy from stakeholders.
Despite the available studies looking at the use of social media as a legitimation tool yet they are mostly carried in the developed countries and perhaps none has been performed within a context of developing country like Indonesia taking the samples of SOEs.
Likewise, with other types of companies.
SOEs may be involved with various social and environmental impacts on the community yet they may receive certain support from the government to legitimize their behavior.
As improvement to the previous studies, this study additionally takes 2 different social media namely.
Instagram and LinkedIn as these two are among most popular social media platforms either for business or personal The remaining of this paper is structured as Next section reviews prior literature in the topic followed by the elaboration of research Subsequently results and discussion are presented in the following section.
The last section Literature review Legitimacy theory Companies are viewed as part of a larger social system in legitimacy theory and do not have rights to resources.
Instead, resource rights must be "acquired," and only "legitimate companies" are able to maintain their direct exposure or ("rights") to the necessary resources (Deegan, 2.
When a Rahmansyah.
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reating what is referred to as a "legitimacy gap") (Patten, 2.
Legitimacy also reflects the extent to which the general public or stakeholders regard an administration's policies as appropriate and useful, or when the company's business is deemed socially acceptable and worthy of support (Ching & Gerab, 2.
Societal expectations are considered to be likely to change over time so that "legitimacy" is seen as a concept that is relative to the social system in which companies operate, and is specific to time and place.
Legitimacy is presumed to be based on the perception of the Aurelevant publicAy, often interpreted as AusocietyAy in general, and not necessarily based on the company's actual behavior (Deegan, 2.
legitimacy might be seen as a key reason for undertaking corporate social behavior and also then using that activity as a form of publicity or influence (Jedynak, 2.
Companies must also voluntarily conform to morals, values and social norms while demanding market-related resources such as information sharing, access to financial and human capital and support from stakeholders, this is important for the survival of companies as it ensures an inflow of resources.
external and support from various stakeholders (Achmad, 2.
However, when society's expectations of company behavior differ from their perceptions of behavior, the community can revoke the company's license to continue operating (Ching & Gerab.
That is why some corporations use strategic CSR, which is a subset of such behavior and includes direct initiatives, such as investing in environmentally friendly operations that reduce emissions and lower costs, and indirect methods like targeted charitable giving that could increase brand reputation and customer loyalty (Bouncken et al.
Legitimacy is the process by which a company justifies publicly conferring its right to continue A general perception or presumption that an entity's activities are beneficial or appropriate within a certain socially constructed system of values, beliefs, and definitions is referred to as legitimacy (Ching & Gerab, 2.
According to the theory, the greater the likelihood of a negative change in public perception of how socially responsible businesses are, the greater the willingness of companies to use legitimacy tactics to manage progressive reform (Yuliawati & Sukirman.
Legitimacy also refers to the level to which the general public or stakeholders regard the administration's policies as appropriate and useful, or when the company's performance is accepted in society and deemed fair and deserving of support (Ching & Gerab, 2.
People's perceptions are thought to shift over time, hence "legitimacy" is viewed as a concept comparative to the social structure wherein the company operates, as well as time and place specific.
Legitimacy is assumed to be based on the perceived notion of the "relevant public", often construed as "society" in overall, and not inevitably on the perspective of the "relevant public" in particular (Deegan, 2.
Companies also must voluntarily comply to morals, values, and social standards while demanding market-related assets such as sharing of information, access to financial and human capital, and stakeholder support.
this is critical for the company's survival because it ensures an influx of foreign of resources.
external and multi-stakeholder assistance (Achmad, 2.
Therefore, an approach is needed that can become a forum for companies to gain legitimacy by using Auinteractive and participatoryAy social media features so as to create networks to learn and build relationships with their stakeholders (Bellucci, 2.
According to resource dependence, legitimacy is a "resource" on which the firm depends for survival and which is given to the firm by society .
ypically assumed to conform to the expectations of a plurality of interest.
, and it's the resource that firms desire/seek (Deegan, 2.
It is also regarded as a resource that may be strategically manipulated thru various managerial actions, including numerous Rahmansyah.
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Managers are supposed to be .
ften implicitl.
motivated by preservation or profitability goals, which are eventually connected to the owner's self-interest (Xu & Xi, 2.
Sustainability report and social media Integrated reporting is a tool for illustrating sustainability performance when compared to a company's core values, goals, and targets.
"The practice of measuring, disclosing, and being accountable to internal and external stakeholders for the company's performance towards sustainable development goals," according to.
Lodhia et al.
is what sustainability reporting is.
It aims to inform stakeholders about a company's social, environmental, and economic impacts, as well as its beneficial and detrimental contributions (Bowen et , 2.
Companies use a range of media, including traditional ones like paper-based reports and modern ones like online disclosure regulations and social media, to inform individuals about their sustainability performance (Lodhia et al.
, 2.
Prior studies have looked at the nature, scope, and trends in corporate environmental reporting practices using a variety of reporting formats, including financial statements, sustainability reports, booklets, advertisements, and website disclosures (Lodhia, 2.
To push information and messages from the company to the recipient, this format, one-way "push " The reporting format lacks a forum for dialogue between corporations, stakeholders on sustainability-related issues (Lodhia et al.
, 2.
Numerous studies have examined how companies use social media to achieve two objectives: reporting on sustainability issues and impacts and engaging stakeholders on issues that affect them (Lodhia et al.
, 2.
Reilly and Hynan, .
examined Facebook.
Twitter, and sustainability reports from 16 large international corporations to evaluate the scope and content of social media as a corporate communication tool.
Compared to non-green businesses, green businesses report more sustainability data and are significantly more active on social media.
Manetti et al.
, .
examined the material on international companies' official YouTube.
Facebook, and Twitter pages to determine whether they employ social media as a mechanism for stakeholder engagement for sustainability reporting.
The authors found that few companies used social media to interact with stakeholders about sustainability issues.
However, despite the fact that these companies' interactions with the "community" online are largely unrelated to their practices and policies for sustainability reporting, they do so on a regular basis.
Furthermore, the authors learn that social media sites are primarily used to advertise goods, services, and events, which suggests that businesses have not yet fully realized social media's potential to support efficient stakeholder involvement for sustainability reporting.
In fulfilling the wishes and balancing the needs of stakeholders, companies must distinguish which stakeholders .
ey stakeholder.
provide resources for the company, usually consisting of shareholders, investors, employees, customers, suppliers and the which are unnecessary .
, they have the ability to mobilize public opinion for or against the company, which consists of regulatory agencies, non-governmental organizations, and the media (Qisthi & Fitri, 2.
The participation of pressured stakeholders will have an impact on the disclosure of the sustainability The pressure given by the main stakeholders is greater than the pressure from the secondary stakeholders, so that the company will try to fulfill its social responsibilities or the main stakeholders (Hillman & Keim, 2.
Therefore, the disclosure of sustainability reports is expected to fulfill the wishes of stakeholders and provide good relations between the company and stakeholders, so that the company's success is achieved in the long term (Qisthi & Fitri, 2.
Lodhia & Stone .
emphasize how social media can be used to enhance effective corporate reporting .
ncluding sustainabilit.
and raise Rahmansyah.
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Eight character traits that can be used to assess the please feel free to contact of information and communications technology, such as social media, are covered in this framework.
The innovation diffusion framework places emphasis on how social media and other immersive technologies have the potential to foster communication rather than simply one-way reporting (Zhao et al.
, 2.
Despite the fact that web-based technologies like social media make communication more immediate and widespread, a number of issues can limit their dialogic possibility (Lodhia et al.
, 2.
These factors have included a lack of pervasive stakeholder internet connectivity, slow bandwidth and connection speeds, the propensity of businesses to password-protect stakeholder expansion of online data, and badly designed company sites and social media platforms that restrict user access and obstruct beneficial stakeholder-to-stakeholder (Lodhia.
Lowe et al.
, .
accentuate "the sheer challenge of being learned in the web frenzy in which millions of .
"hits" have been considered necessary to be visible in the crowd" Additionally, some academics have questioned the value of social media platforms in broader stakeholder dialogue, contending that businesses only use them to maintain their credibility and public image (Manetti et al.
, 2.
However, web technologies can also be used as an effective tool to extend dialogue interests.
Today, many social media platforms and websites have been designed to facilitate dialogue between companies and their stakeholders, by providing open forums for discussion and exchange of ideas (Galiano-Coronil et al.
, 2.
In addition, web technologies also enable easier access to information and data for stakeholders, thereby helping to strengthen their engagement and participation in the dialogue (Ghezzi et al.
, 2.
Recent studies have also shown that web technologies can help increase stakeholder engagement in dialogue and increase business According to a study conducted by Kaluarachchi, .
, the use of social media platforms can help increase stakeholder engagement in dialogue business and increase business linkages and accountability.
Additionally, the study by Carswell & De Neve, .
show that the use of web technologies, including social media platforms, can help strengthen stakeholder participation in decision-making processes, by providing easy access to related information and data.
Social media as a legitimacy tool in sustainability Social media use changes the dynamic characteristics of reporting, creating an interactive communication procedure where dialogue and interaction with stakeholders can be utilized to supplement information disclosure in order to gain legitimacy (Lodhia et al.
, 2.
One of the things that underlies legitimacy theory is agency theory where agents have equity in the company, they are more likely to embrace the actions desired by the principal as their own actions (Bendickson et al.
, 2.
Bendickson et al.
, .
went further by theorizing that when the action is outcome-based, agents are more likely to behave in the interests of the principal.
However, if there is perceived injustice, the agent is likely to engage in self-serving behavior.
When the agent engages in self-serving behavior, information asymmetry is created whereby the principal is unable to properly monitor the agent's behavior (Klein & Dawar, 2.
Measurement thus becomes elusive, leading to another problem - monitoring agent behavior (Ayu et al.
, 2.
Given the nature of the two agency problems, governance mechanisms are needed to help align risks and monitor agent behavior, which brings us back to the positivist perspective of agency theory (Fitri et al.
, 2.
In summary, two perspectives in agency theory have emerged: principal-agent research and positivist agency theory.
Principalagent research identifies two possible agency Rahmansyah.
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The two problems are linked in that differences in the area of risk sharing create information asymmetry, which in turn reduces the principal's ability to monitor agent behavior (Shevchenko et al.
, 2.
Shifts in risk sharing, whether perceived or actual, make it difficult to create an ideal contract between principal and agent (Beal Partyka, 2.
The legitimacy theory states that companies will take steps to control one Aos social and environmental impacts in order to defend their continued existence in culture (Pellegrino & Lodhia, 2.
The central idea of this theory is company legitimacy, which is defined as "a situation or social standing that exists when the sense of morality of an entity is consistent with the system of values of a larger social structure that is part of the entity" (Lodhia et al.
, 2.
legitimacy gap occurs when there is a difference between two value systems, which poses a threat to the entity's legitimacy.
Because of this, legitimacy theory argues that businesses should indeed manage social norms and legitimacy gaps in order to survive, a process known as legitimacy planning (Manetti et , 2.
A greater standard of legitimacy is required for businesses that are more visible to one Aos stakeholders and heavily rely on societal and political support (Lodhia et al.
, 2.
Businesses operating in industries to safe social and environmental conditions are less likely to demand greater legitimacy from one Aos stakeholders than those in environmentally and socially responsive industries (Arora & Lodhia, 2.
Legitimacy is an ever-changing concept.
Changes in company performance and/or societal expectations may result in potential legitimacy gaps (Lodhia et al.
, 2.
As a result, management must be aware of current societal expectations and potential legitimacy gaps, and manage them by engaging in activities that legitimize the firm's presence to stakeholders (Lodhia & Stone, 2.
A legitimacy gap may be created as a result of specific events.
Companies need to develop strategies to nearer the legitimacy gap after identifying important stakeholders who have the power to affect their legitimacy (O'Donovan, 2.
For instance, the oil spill at BP left the company with a credibility gap that needed to be filled right away.
Similar businesses are frequently subject to increasing pressure from their own stakeholders, who demand an explanation of why they exist (Lodhia et al.
, 2.
The "illegitimacy" of a company may lead to financial, legal, and social repercussions.
Economic sanctions can take the form of a production boycott, a work stoppage, or a refusal to extend credit.
Examples of legal penalties include fines or civil lawsuits (Du et al.
, 2.
Knowledge picketing, media advertising, and refusal to work for the company are examples of social sanctions (Lodhia et , 2.
One method to increase business legitimacy is by providing stakeholders with social and environmental data (Pellegrino & Lodhia, 2.
Therefore, social and environmental revelation is a method that businesses can employ to defend their existence to their different customers, according to the fundamental tenet of legitimacy theory (Lodhia et al.
, 2.
Previous research has revealed that companies employ a variety of legitimacy strategies because once trying to conduct sustainability reporting (Lodhia, 2.
These tactics can be practical as well as metaphoric (Savage et al.
, 2.
A substantive strategy involves making an effort to improve the performance of the company and attempting to close legitimacy gaps with tangible measures.
Contrarily, symbolic strategies involve manipulating or trying to change beliefs and expectations, and they are frequently linked to assumption management strategies (Lodhia et al.
, 2.
The disclosures in reports like annual and sustainability findings, which appear to be regularly static and recurrent in nature, had also been the main focus of legitimacy theory (Lodhia et al.
, 2.
was already mentioned, the utilization of electronic media, including such websites and social media, is more dynamic and enables adjustments to Rahmansyah.
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In essence, dialogue as well as the disclosure of information has taken the place of reporting thanks to the engaging potential of technology (Lodhia, 2.
As a result, businesses will start disclosing corporate social and environmental as well as starting to interact with their stakeholders through social media's interactive capabilities in order to establish credibility.
Corporate websites are used by businesses for lawful purposes, according to prior research (Lodhia & Stone, 2.
Because of this, it is important for academics to look into just how social media is employed to legitimize social and environmental problems, as well as whether these strategies are actual or merely symbolic (Lodhia et al.
, 2.
Research method This study utilizes content analysis.
Content analysis is a methodology that examines the contents of written or printed knowledge in the mass media in According to Sumarno .
the content analysis method is a technique for drawing conclusions by identifying various special characteristics of a message in an objective, systematic, and generalist manner.
In qualitative research, content analysis is commonly used.
The pioneer of content analysis is Harold D.
Lasswell, who pioneered the symbol coding technique, which is to record symbols or messages systematically, then interpret them.
So, this study sees that social media sustainability communication in SOEs focuses on legitimacy strategies, which lead to company management so that it can give the impression of stakeholders and control communication with them.
Based on the approach used, this study uses a qualitative content analysis method.
Qualitative content analysis research is influenced by the naturalistic-interpretive paradigm (Gusti Yasser Arafat, 2.
Company tweets, blog posts, and videos regarding the environment and society make up the data collection unit.
Additionally, every stakeholder response in the shape of likes, comments, shares, and retweets, in addition to actually effective company responses, are tracked in order to evaluate the dialectical effectiveness of social media.
Source of data used in this research is secondary Secondary data is data obtained indirectly because the data collected comes from sources of information that are already available in the media (Sekaran & Bougie, 2017: .
The data sources used are Instagram.
Twitter, and LinkedIn.
According to Rahmadani, et al .
Instagram has more than 61 million active social media users in Indonesia, and the number of Twitter users in Indonesia reached 14.
05 million in January 2021.
The Director of LinkedIn Asia Pacific said that LinkedIn gained 500 million users worldwide, while Users LinkedIn active users in Indonesia reached 86 million or around 6.
8% in July 2021 (Candra et al.
, 2.
Data collection units are in the form of posts, tweets and videos posted by companies related to social and environmental issues.
Furthermore, any stakeholder responses in the form of likes, comments and shares/retweets and subsequent replies by the company are monitored to assess the dialogic potential use of social media (Lodhia et al.
, 2.
This analysis aims to document corporate social and environmental disclosures and responses posted by their stakeholders such as comments, likes, and shares/retweets (McKenna et al.
, 2.
In the is study, the data analysis process was carried out using the following steps:
Disclosure classification Ae social environment .
ocial environmenta.
The topics covered in the posts/tweets employ thematic analysis to generate an inductive list of the major themes raised in this disclosure, such as water, waste, global warming response, employee satisfaction, and civic engagement.
The use of social media's conversational tools by stakeholders .
ikes, comments, as well as shares/retweet.
For initial data collection, open coding was also used, namely by using web scrappers, including the process of trying to describe, examining, comparing.
Rahmansyah.
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, 2.
The process of using scrapping through a web scrapper, one of which is using Rapidminer, the scrapper process is described in Figure 1 below:
Figure 1.
The process of using scraping Source: Rapidminer .
Inputting only those sociocultural1, physical2, and social environmental problems3 that the business posts on the three social platforms into an excel spreadsheet (Lodhia et al.
, 2.
To assess how effectively the three platforms for social media facilitate dialogical accounting, the total number of stakeholder comments posted is also tallied and To ensure the validity of the process, researches carried coded posts on social media and Results and discussion Description and data analysis Of the 21 SOEs listed on the Indonesian stock exchange, only eight consistently report on how they use social media sites like Instagram, twitter, and LinkedIn.
These eight businesses published a total of 7,635 social media and environmental posts between 2019 and 2021.
An in-depth examination of eight The ideas, customs, skills, arts, and tools that characterize a particular group of people at a particular time.
The social environment is the area where various activities take place, namely social interactions between various groups and their institutions with symbols and values.
SOEs' use of social media channels revealed their regular use to communicate and disseminate sustainability information.
On three social media platforms.
PT Jasa Marga (Perser.
Tbk people posting the most about social and environmental issues, while financial and mining companies also have a strong presence.
6 percent of all posted jobs were made by finance industry companies, 45.
percent by construction sector companies, and 25,6 percent by mining sector companies and 11.
percent from the health sector.
Sector analysis shows that sustainability issues raised by companies in the infrastructure sector have a higher percentage of presentation.
On the other hand, financial sector companies have lower posting presentation rates.
This finding reflects the proposition that companies in socially and environmentally sensitive industries are more likely Environmental problems are negative aspects of human activity on the biophysical environment.
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their existence to stakeholders.
However, research conducted by Afzal & Lim.
Previous studies have also shown a relationship .
show that internal company factors such as between industry type and company repayment pressure from management and commitment to A study conducted by Kolk et al.
, .
social responsibility also influence the company's found that companies operating in sectors that are at tendency to finance.
high risk of environmental and social impacts tend Table 1.
Total social and environmental posts from 8 SOEs Sector Social PT.
Various Mines PT.
Indonesian Cement PT.
Bank Negara Indonesia PT.
Wijaya Karya PT.
Jasa Marga PT.
Pharmaceutical Chemistry PT.
State Savings Bank PT.
Mandiri Bank
Twitter
Environ
Total
Social
Instagram
Environ
Soci
LinkedIn
Environ
1,456
Total
Total
1,428
2,884
3,150
2,043
Total
5,508
Sources: Twitter.
Instagram and LinkedIn Table 1 shows that companies consciously address social issues, as they specifically mention issues or concerns such as community, diversity and inclusion, gender, employees, welfare, poverty, and sustainability in their posts.
most of the third platforms are related to issues, employees, social diversity such as gender community, health and safety, in this case companies use social media space to communicate their contribution to local communities and charities.
This finding shows that social media supports companies to build a dialogue about current issues that affect society and the environment (Table .
For example, regarding climate change which received media attention during the period, and finally, the Indonesian government reduced the use of coal as a source of electrical energy and disabled several steam power plants and sought the use of renewable energy for the environment.
Therefore, it can be concluded that there are internal and external factors that affect a company's propensity for sustainability reporting and the differences between types of industries can also affect the level of involvement of companies in sustainability Rahmansyah.
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Geumpana / Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 Table 2.
Social media posts from Ae2019 - 2021 Social and environmental Public Diverse Employee Gender Safety Supply Corruption Peace Human rights Ethics Customer Technology Sustainable Finance Poverty Inflation Well-being Security General Total social problem Environmental problems Partnership Climate Energy Finance Rubbish Water Award Environment Health Forestry Pollution Disaster Erosion Reclamation Covid Technology Ethics Reporting Total environmental Twitter No.
(%)
1,169
Instagram No.
(%)
5,12
LinkedIn No.
(%)
1,415
3,031
Sources: Twitter.
Instagram and LinkedIn Rahmansyah.
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Geumpana / Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 Instagram.
Twitter, and LinkedIn are favourite social media platforms by businesses for reporting on sustainability issues.
Instagram is the most popular social media platform for business owners to interact social and environmental problems.
Based on the results of sentiment analysis in this study as many as 22,630 sentiments were obtained, from three platforms it showed that Twitter had the largest number with 15,987 sentiments.
Instagram is in second place with 6,516 sentiments, and lastly LinkedIn with 127 sentiments.
Twitter is also the platform with the most negative sentiments with 3,872 reactions, with a proportion of 89%.
With PT Bank Tabungan Negara (Perser.
as the company with the most negative sentiments with 1,098 reactions, then PT Bank Mandiri (Perser.
Tbk with the second most negative sentiment, which was 700.
From the results of the sentiment analysis conducted, it can be seen that social media Twitter is the main platform for conveying sentiment towards banking companies in Indonesia.
This is in line with previous research which states that Twitter is the platform most often used to express opinions related to a topic or issue (Aral & Walker, 2.
addition, the results of this study also show that PT Bank Tabungan Negara (Perser.
has the most negative sentiment compared to PT Bank Mandiri (Perser.
Tbk.
This can be indicated that PT Bank Tabungan Negara (Perser.
has a bad image in the eyes of the public.
A previous study also showed that company image greatly influences consumer perceptions of the products or services offered (Keller, 1.
Previous studies have also shown that sentiments expressed on social media can affect company reputation (Kietzmann et al.
, 2.
Therefore, companies need to pay attention to sentiments expressed on social media and companies make efforts to improve their image and respond to unfavorable sentiments (Thelwall et al.
, 2.
This shows that the large number of posts on social media is directly proportional to the number of positive and negative sentiments owned by the company, with positive sentiment greater than negative sentiment (Thelwall et al.
, 2.
So, it can be said that the company is able to use social media as a tool of legitimacy to stakeholders (Peslak.
This finding also shows that stakeholders can put pressure on every company activity, especially regarding social and environmental issues, by looking at the many reactions and sentiments given by stakeholders.
Twitter Twitter emerged as one of the most commonly used social media platforms with a total of around 1410 social and environmental tweets posted in the year from 2021 to 2019.
Of the total tweets, 44.
percent related to social issues and 55.
8 percent related to environmental issues.
PT Kimia Farma (Perser.
Tbk has the most tweets on Twitter.
Research conducted by Lee & Shim .
shows that companies often use Twitter to disseminate information about sustainability and interact with They found that companies tend to use tweets to express their appreciation for successful launches, environmentally friendly products, and announcing various coaching programs.
In addition, companies also often use Twitter to invite stakeholders to participate in the sustainability of programs or events related to environmental or social issues (Papaoikonomou.
Kostaras, & Siomkos, 2.
Community support, diversity, gender equality, employees, health, ethics, and corruption are some of the social issues raised or shared on twitter.
Climate partnerships, sustainable finance, water, and waste are just a few of the environmental issues that the company addresses on twitter.
Environmental issues are most likely to be tweeted about by companies in the facilities and mining sectors.
Rahmansyah.
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Geumpana / Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 Table 3.
Total stakeholder reactions on twitter social media Company name Retweets Like PT Aneka Tambang (Perser.
Tbk PT Semen Indonesia (Perser.
Tbk.
PT Bank Negara Indonesia (Perser.
Tbk.
PT Wijaya Karya (Perser.
Tbk.
PT Jasa Marga (Perser.
Tbk.
PT Kimia Farma (Perser.
Tbk PT Bank Tabungan Negara (Perser.
PT Bank Mandiri (Perser.
Tbk.
Total
2,975
6,636
6,641
1,983
19,417
3,472
4,581
4,389
14,682
Comment Total reaction
1,568
2,497
3,573
9,419
1,502
8,015
1,593
13,714
14,603
2,809
43,518
Source:w.
Further analysis of twitter usage due to the interactions companies receive for their tweets (Table .
From 2021 to 2019 there were 2043 tweets overall and 43,518 reactions by stakeholders on Twitter PT Jasa Marga (Perser.
Tbk received the highest number of reactions with 14,603 reactions per tweet.
PT Wijaya Karya (Perser.
Tbk received the second highest number of reactions with 13,714 reactions per tweet.
The volume of stakeholder engagement on facebook vis-y-vis twitter and LinkedIn is consistent with Bellucci & Manetti's .
findings that facebook users react positively to invitations to interact online with organizations.
According to twitter sentiment analysis (Figure .
PT Bank Tabungan Negara (Perser.
has the most sentiment, with 3,140 reactions, followed by PT Bank Negara Indonesia (Perser.
Tbk with 2,644 PT Bank Mandiri (Perser.
Tbk.
PT Bank Tabungan Negara (Perser.
PT Kimia Farma (Perser.
Tbk PT Jasa Marga (Perser.
Tbk.
PT Wijaya Karya (Perser.
Tbk.
PT Bank Negara Indonesia (Perser.
Tbk.
PT Semen Indonesia (Perser.
Tbk.
PT Aneka Tambang (Perser.
Tbk Negatif Positif Figure 2.
Twitter sentiment analysis Source:w.
Instagram Around 5,508 social and environmental posts were observed on Instagram from 2019 to 2021.
the total social and environmental posts, 45 percent related to social issues and 55 percent related to environmental issues.
The company posts various social issues on Instagram such as community, diversity, employees, gender equality, health and PT Jasa Marga (Perser.
Tbk.
posted the most social and environmental issues on instagram, with 2884 photo uploads.
Recent studies show that Instagram has become a popular social media platform for sustainability reporting for companies.
In a study conducted by Russo et al.
, .
there has been a significant increase in the use of Instagram to report corporate sustainability, with more than 500 companies reporting their sustainability on this platform.
In the context of environmental issues.
Instagram is an Rahmansyah.
Mulyany.
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, 2023, pp 265 Ae 284 effective social media platform for increasing public communities about sustainability issues, especially awareness and participation in environmental through the use of hashtags and other interactive conservation efforts (Budiwarman, 2.
The study Sustainability reporting on Instagram is conducted by Pavelle & Wilkinson, .
show that still relatively new and not yet standardized.
Instagram can be used to generate greater awareness Therefore, greater efforts are needed to ensure about environmental issues and mobilize collective that sustainability reporting on Instagram is carried out in a transparent and accountable manner (BryCa Apart from that.
Instagram also facilitates open et al.
, 2.
The study conducted by Geraldo & dialogue between companies and the community Pinto, .
emphasize the importance of about sustainability issues.
The study conducted by developing a standardized sustainability reporting Nurjanah, .
show that Instagram can be used to framework for Instagram.
facilitate open dialogue between companies and Table 5.
Total stakeholder reactions on Instagram social media Company name Like Comment Total reaction PT Aneka Tambang (Perser.
Tbk 622,341 23,833 646,174 PT Semen Indonesia (Perser.
Tbk.
631,602
11,863
643,465
PT Bank Negara Indonesia (Perser.
Tbk.
246,427
29,005
275,432
PT Wijaya Karya (Perser.
Tbk.
6,551,113
93,825
6,644,938
PT Jasa Marga (Perser.
Tbk.
2,335,743
87,338
2,423,081
PT Kimia Farma (Perser.
Tbk 191,488 11,708 203,196 PT Bank Tabungan Negara (Perser.
1,696,419 129,133 1,825,552 PT Bank Mandiri (Perser.
Tbk.
913,875
118,859
1,032,734
Total
13,189,008 505,564
13,694,572
Source: w.
Further analysis of Instagram posts revealed approximately 225,000 stakeholder reactions, with an average of 13,694,572 post reactions, 13,189,008 likes from total posts, and 505,564 comments (Table This makes Instagram social media the largest number of posts made by the company.
PT Wijaya Karya (Perser.
Tbk.
received the highest number of reactions, with 6,644,938 reactions in its post.
Sentiment analysis obtained from Instagram shows that PT Jasa Marga (Perser.
Tbk has the most sentiment, namely 1,636 reactions, then PT Bank Tabungan Negara (Perser.
Tbk with 1,083 In the sentiment analysis, it can be concluded that PT Jasa Marga (Perser.
Tbk has a good reputation among Instagram users with a total of 1,636 positive sentiments.
This can be an indication that the company's performance is considered good by the community, or maybe it is because of positive news or campaigns carried out by the company (Kharde, 2.
Meanwhile.
PT Bank Tabungan Negara (Perser.
Tbk also had a fairly high number of positive sentiments with 1,083 reactions.
This shows that the company also has a good reputation in the eyes of the public (Kharde, 2.
However.
PT Bank Negara Indonesia also had 184 negative This can indicate that the company may face some problems or controversies that make people respond with negative sentiments (Lee & Weder, 2.
In this case.
PT Bank Negara Indonesia needs to take the right actions to improve their reputation so that they can regain the trust and support of the community (Hao et al.
, 2.
Overall, the sentiment analysis carried out can be input for these companies to improve their image in the eyes of the public, as well as to find out what is considered good or bad by consumers or Instagram users (Singh et al.
, 2.
Rahmansyah.
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Geumpana / Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 PT Bank Mandiri (Perser.
Tbk.
PT Bank Tabungan Negara (Perser.
PT Kimia Farma (Perser.
Tbk PT Jasa Marga (Perser.
Tbk.
PT Wijaya Karya (Perser.
Tbk.
PT Bank Negara Indonesia (Perser.
Tbk.
PT Semen Indonesia (Perser.
Tbk.
PT Aneka Tambang (Perser.
Tbk 200 400 600 800 1.
Negatif Positif Figure 3.
Instagram sentiment analysis Source: w.
LinkedIn LinkedIn is the least used social media platform for sustainability reporting, with approximately 84 social and environmental posts from 2019 to 2021.
Social issues account for 54% of total LinkedIn social and environmental posts, with environmental issues accounting for 36% (Table .
LinkedIn not only reports on their contributions to the local community, but also demonstrates their support for workplace diversity and inclusion.
Renewable energy, climate change, sustainable finance, conservation partnerships, water, and covid-related issues are among the key environmental issues discussed on LinkedIn.
Based on an analysis of reporting on the LinkedIn social media platform, it can be concluded that LinkedIn is the platform that is most rarely used for financing reporting compared to other platforms such as Facebook.
Instagram, and Twitter.
According to a study conducted by Jha & Verma .
LinkedIn has low usage rates in training reporting, with only about 7% of companies hosting their training on the platform.
Nonetheless, social and environmental posts on LinkedIn tend to focus more on social issues than environmental issues.
The study conducted by Jaffar et al.
, .
show that around 54% of total social and environmental posts on LinkedIn are related to social issues, while 36% are related to environmental In building awareness about environmental issues.
LinkedIn also facilitates open dialogue between companies and communities, and generates collaborative initiatives that lead to better sustainability solutions.
The study conducted by Jose & Lee .
show that LinkedIn can be an effective platform for facilitating open dialogue between companies and communities on coaching Overall, although LinkedIn is less used for training reporting than other social media platforms, it still makes an important contribution to awareness about sustainability issues, both in terms of social and environmental issues (John & DeAoVilliers.
Therefore, it is important for companies to consider using LinkedIn in their efforts to raise awareness about sustainability issues (Kujala et al.
Table 7.
Total stakeholder reactions on LinkedIn social media Company name PT Aneka Tambang (Perser.
Tbk PT Semen Indonesia (Perser.
Tbk.
Like 1,229 1,798 Comment Total reaction
1,254
1,837
Rahmansyah.
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Geumpana / Jurnal Dinamika Akuntansi dan Bisnis Vol.
, 2023, pp 265 Ae 284 Company name Like Comment Total reaction PT Bank Negara Indonesia (Perser.
Tbk.
15,607
1,389
16,996
PT Wijaya Karya (Perser.
Tbk.
7,443
7,694
PT Jasa Marga (Perser.
Tbk.
2,410
2,476
PT Kimia Farma (Perser.
Tbk PT Bank Tabungan Negara (Perser.
6,111 6,530 PT Bank Mandiri (Perser.
Tbk.
27,228
27,742
Total
62,096
2,706
64,802
Source: w.
LinkedIn.
An analysis of the interactions the company received on LinkedIn showed around 64,802 reactions, with 62,096 likes from each post, 2,706 comments from each post, which is significantly lower than the stakeholder reactions from Instagram and Twitter (Table .
PT Bank Mandiri (Perser.
Tbk received the highest number of reactions, with 27,742 reactions to each post.
This could indicate that the company has a good reputation with employees, customers, or LinkedIn Furthermore.
PT Bank Tabungan Negara (Perser.
received positive sentiment with 21 This indicates that it also has a good reputation among LinkedIn employees, customers, or enterprise users (Myntyly et al.
, 2.
However.
PT Bank Negara Indonesia has the most negative sentiment with 13 reactions.
This can indicate that it is facing problems or controversies that affect the company's image and reputation in the eyes of the corporate community (Lee & Weder, 2.
The results of sentiment analysis on the LinkedIn platform can help companies improve their image and reputation in the eyes of employees, customers or social media users (Golder & Macy.
Companies can take appropriate actions to improve their image and increase public trust in the company (Omuya et al.
, 2.
PT Bank Mandiri (Perser.
Tbk.
PT Bank Tabungan Negara (Perser.
PT Kimia Farma (Perser.
Tbk PT Jasa Marga (Perser.
Tbk.
PT Wijaya Karya (Perser.
Tbk.
PT Bank Negara Indonesia (Perser.
Tbk.
PT Semen Indonesia (Perser.
Tbk.
PT Aneka Tambang (Perser.
Tbk Negatif Positif Figure 3.
LinkedIn Sentiment Analysis Source: w.
LinkedIn.
Sentiment analysis obtained from LinkedIn shows that PT Kimia Farma (Perser.
Tbk has the most sentiments, namely 34 reactions, then PT Bank Tabungan Negara (Perser.
with 21 reactions.
Conclusions This study was set to investigate the use of social media in the sustainability report of Indonesian SOEs listed on the Indonesia Stock Exchange as a means of legitimacy seeking from It was found that the issues raised on social media by companies from the three platforms mostly consist of issues of community, employees, diversity, gender equality, health, and corruption, in this case companies use their social media space for stakeholders and interested stakeholders to Rahmansyah.
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, 2023, pp 265 Ae 284 communicate contributions.
With a great number of posts on facebook, the company is quite adept at using it as a tool of legitimacy, with positive sentiment outweighing negative sentiment.
So, it can be said that the company is able to use social media as a tool of legitimacy to stakeholders.
The company has done a good job of attempting to make social media a legitimate tool for its stakeholders, as evidenced by its use of social media to construct a dialogue regarding current issues affecting people and the environment.
This approach is performed to reassure stakeholders that the business is concerned about the environment as well as profit.
Nevertheless, this study only focuses on SOEs listed on the Indonesian Stock Exchange and does not cover various business sectors.
Researchers only use social media as a source of data as a research tool, so there are still many factors that can be a tool for company legitimacy.
It is hoped that future researcher can add other variables in the sustainability report research, so that they can see further the factors that influence good corporate Future researchers can use social media sources as a tool to communicate sustainability issues from various other theoretical perspectives.
References