The Impact of Corporate Governance Attributes on Achievement of SDGs in Indonesian Private Limited Companies: Mediating Role of Foreign Ownership

Abstract

The attainment of Sustainable Development Goals (SDGs) is a global imperative necessitating heightened attention from both emerging scholars and policymakers. Accordingly, this study delves into the examination of how corporate governance attributes, namely board size, board diversity, and board independence, influence the achievement of SDGs within private enterprises in Indonesia. Additionally, the research explores the mediating effect of foreign ownership on the relationship between board characteristics and SDGs achievement. Employing survey questionnaires, data were collected from employees of private organizations, and the structural equation modelling technique, specifically Smart Partial Least Squares (Smart-PLS), was employed to assess data reliability and the interrelations among variables. Findings indicate a positive association between board size, board diversity, board independence, and SDGs achievement. Moreover, the study reveals that foreign ownership significantly mediates the relationships between board attributes and SDGs achievement in private enterprises in Indonesia. The insights garnered from this research offer valuable guidance for policymakers in formulating regulations aimed at effectively leveraging corporate governance mechanisms to advance SDGs.