Abstract

A Company faces several stakeholders that have different interests. This study uses the COVID-19 pandemic as a contingency factor that can help the company choose optimum social and environmental responsibility for external and internal stakeholders. This research is based on stakeholder theory and examines the effect of shareholders, employees, creditors, and society or community on the disclosure of sustainability reports to understand the role of stakeholders in corporate strategy. This study uses the food and beverage industry (consumer sector – non-cyclical) that selects a sample from the Indonesia Stock Exchange (2020 to 2022) because the return is under all stocks in IDX. The finding reveals that during COVID-19, companies engaged with the community’s interest rather than shareholders, creditors, or employees. This study contributes to enlarging stakeholder theory through the economic condition as a contingency on decision-making about stakeholder interests.