Corporate governance mechanisms, risk oversight and corporate social responsibility: evidence from cyclical and non-cyclical industries

This article examines the relationship between corporate governance, risk management, and corporate social responsibility (CSR) in 482 publicly listed Indonesian companies in cyclical and non-cyclical sectors from 2022 to 2024. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS, the study shows that audit committee effectiveness is positively associated with risk management and corporate governance. Corporate governance also has a positive effect on CSR, while risk management influences CSR indirectly through governance. Contrary to expectations, the presence of a risk management committee is negatively associated with risk management, suggesting that formal committee structures do not automatically improve risk practices. The mediation results indicate that governance pathways operate through integrated organizational processes rather than separate channels. Multi-group analysis further reveals significant differences between cyclical and non-cyclical firms, particularly in the paths from audit committee effectiveness to corporate governance and from risk management to corporate governance. These findings suggest that governance quality is more strongly reflected in process integration than in formal structure. The study recommends that the Indonesian Financial Services Authority (OJK) place greater attention on committee competence, process integration, and the practical effectiveness of governance mechanisms.