7 / 2016-09-28 14:44:51

Social Media, Stakeholder, and Social Performance of Publicly Listed Firms in Indonesia

Social Media, Social Performance, CSR, SRI, Emerging market

Socially responsible investment has grown considerable in the last decade due to the raising concerns on environmental, social, and governance issues. This has pushed corporates to spend their resources on these issues. However, corporates should disclose this to the public to be valued by stakeholders. The social media has been used as a way to communicate to the public on corporate concerns and issues. Therefore, social media such as Twitter and Facebook could be used by corporate to communicate their activities to stakeholders. This study extends previous study on social media and social performance in Indonesia market by investigating whether corporate with high social performance uses social media to communicate to their stakeholders. We collect 50 twitter accounts from 21 March 2016 until 21 April 2016 (32 days) which consist of Tweet, Reply and Like from each FD (Firm-Driven) and UD (User-Driven). We find that Indonesian firms have not used social media effectively to communicate to stakeholders suggesting Indonesian firms have not concerned yet on the importance of communicating theirs values to the public.