Maintaining Business Sustainability: Challenges and Opportunities of Sustainability Reporting in Indonesia

Lila Alwyah

Abstract


This study aims to discuss the importance of sustainability reporting for companies, the condition of sustainability reporting in Indonesia, and the challenges and opportunities faced in implementing it. The method used in this study is library research that refers to the results of previous studies. Based on the findings from previous studies, Indonesia has not yet implemented mandatory regulations for the presentation of sustainability reports. The absence of strict regulations related to sustainability reporting has resulted in only a few public companies in Indonesia committing to supporting sustainability reporting. The challenges in implementing sustainability reporting in Indonesia include a lack of awareness, a lack of government policy, and a lack of resources. The opportunities in implementing sustainability reporting in Indonesia include improving the company's image, attracting investors, and meeting consumer demands.


Keywords


Challenges, Opportunities, Sustainability Reporting

Full Text:

PDF

References


Adhariani, D., & du Toit, E. (2020). Readability of sustainability reports: evidence from Indonesia. Journal of Accounting in Emerging Economies, 10(4), 621–636. https://doi.org/10.1108/JAEE-10-2019-0194

Amidjaya, P. G., & Widagdo, A. K. (2020). Sustainability reporting in Indonesian listed banks: Do corporate governance, ownership structure and digital banking matter? Journal of Applied Accounting Research, 21(2), 231–247. https://doi.org/10.1108/JAAR-09-2018-0149

Atan, R., Safa, M. S., & Ghani, E. K. (2021). The influence of sustainability reporting on investment and purchasing decisions. Journal of Cleaner Production, 291, 125857.

Badia, F., & Bracci, E. (2020). Quality and Di ff usion of social and sustainability reporting in Italian public utility companies.

Sustainability, 12(11), 4525. https://doi.org/10.3390/su12114525

Brundtland Commission (1987), Report of the World Commission on Environment and Development: Our Common Future, World Commission on Environment and Development, United Nations, available at: https://sustainabledevelopment.un.org/content/documents/5987our-commonfuture.pdf

Buallay, A. (2020). Sustainability reporting and firm’s performance: Comparative study between manufacturing and banking sectors. International Journal of Productivity and Performance Management, 69(3), 431–445. https://doi.org/10.1108/IJPPM-10-2018-0371

Buallay, A., Fadel, S. M., Alajmi, J., & Saudagaran, S. (2020).

Sustainability reporting and bank performance after financial crisis: Evidence from developed and developing countries. Competitiveness Review, 31(4), 747–770. https://doi.org/10.1108/CR-04-2019-0040

Chen, S., & Komal, B. (2018). Audit committee financial expertise and earnings quality: A meta-analysis. Journal of Business Research, 84, 253-270.

Deegan, C. M. (2019). Legitimacy theory: Despite its enduring popularity and contribution, time is right for a necessary makeover. Accounting, Auditing and Accountability Journal, 32(8), 2307–2329. https://doi. org/10.1108/AAAJ-08-2018-3638

Dienes, D., Sassen, R. and Fischer, J. (2016), “What are the drivers of sustainability reporting? A systematic review”, Sustainability Accounting, Management and Policy Journal, Vol. 7 No. 2, pp. 154-189.

Diouf, D., & Boiral, O. (2017). The quality of sustainability reports and impression management: A stakeholder perspective. Accounting, Auditing and Accountability Journal, 30(3), 643–667. https://doi.org/10.1108/ AAAJ-04-2015-2044

Dragomir, V. D. (2012). The disclosure of industrial greenhouse gas emissions: A critical assessment of corporate sustainability reports. Journal of Cleaner Production, 29(30), 222–237. https://doi.org/10.1016/ j.jclepro.2012.01.024

Farhana, S., & Adelina, Y. E. (2019). Relevansi Nilai Laporan Keberlanjutan Di Indonesia. Jurnal Akuntansi Multiparadigma, 10(3), 615–628. https://dx. doi.org/10.21776/ub.jamal.2019.10.3.36

Friedman, A. L., & Miles, S. (2001). Socially responsible investment and corporate social and environmental reporting in the UK: An explaratory study. British Accounting Review, 33(4), 523–548. https://doi.org/ 10.1006/bare.2001.0172

Global Reporting Initiative (GRI) (2021), “Welcome to GRI”, Set the agenda for the future, available at: www.globalreporting.org/

Global Reporting Initiative. (2016). Gri 101: Foundation 2016 101. Gssb file:///D:/B Penelitian/A Penelitian Tahun 2021/GRI standard/gri-101-foundation-2016. pdf

Global Reporting Initiative. (2019). Sustainability reporting in the 21st century corporation: A status update from the Fortune Global 250. https://www.globalreporting.org/resourcelibrary/GRI-Sustainability-Reporting-in-the-21st-Century-Corporation.pdf

Hahn, R., & Kühnen, M. (2013). Determinants of sustainability reporting: A review of results, trends, theory, and opportunities in an expanding field of research. Journal of Cleaner Production, 59, 5–21. https://doi. org/10.1016/j.jclepro.2013.07.005

Isaksson, R. and Steimle, U. (2009), “What does GRI-reporting tell us about corporate sustainability?”, The TQM Journal, Vol. 21 No. 2, pp. 168-181.

KPMG Impact. (2020). The time has come. KPMG, (December), 0–62. https://assets.kpmg/content/dam/kpmg/be/pdf/2020/12/The_Time_Has_Come_KPMG_ Survey_of_Sustainability_Reporting_2020.

Langer, M. (2006). Comparability of sustainability reports: A

Comparative content analysis of Austrian sustainability reports.

Sustainability Accounting and Reporting, August 2004 (pp. 581–602). Springer. https://doi.org/10.1007/978-1-4020-4974-3_26

Otoritas Jasa Keuangan. (2017). Peraturan Otoritas Jasa Keuangan Nomor 51/POJK.03/2017 tentang Penerapan Keuangan Berkelanjutan bagi Lembaga Jasa Keuangan, Emiten, dan Perusahaan Publik. Otoritas Jasa Keuangan.

Peck, P., & Sinding, K. (2003). Environmental and social disclosure and data richness in the mining industry. Business Strategy and the Environment, 12(3), 131– 146. https://doi.org/10.1002/bse.358

Perrini, F., Russo, A., Tencati, A. and Vurro, C. (2011), “Deconstructing the relationship between corporate social and financial performance”, Journal of Business Ethics, Vol. 102, No. 1, pp. 59-76.

Sawarjuwono, T., & Kadir, A. P. (2003). Intellectual capital: Perlakuan, pengukuran dan pelaporan (sebuah library research). Jurnal Akuntansi Dan Keuangan, 5(1), 35–57.

Sebrina, N., Taqwa, S., Afriyenti, M., & Septiari, D. (2023). Analysis of sustainability reporting quality and corporate social responsibility on companies listed on the Indonesia stock exchange. Cogent Business and Management, 10(1).

https://doi.org/10.1080/23311975.2022.2157975

Stubbs, W., & Higgins, C. (2020). A content analysis of the contemporary sustainability reporting practices of Australian mining companies. Journal of Cleaner Production, 271, 122670.

Thijssens, T., Bollen, L. and Hassink, H. (2016), “Managing sustainability reporting: many ways to publish exemplary reports”, Journal of Cleaner Production, Vol. 136 No. 1, pp. 86-101.

Threlfall, R., King, A., Schulman, J. and Bartels, W. (2020), “The time has come. The KPMG survey of sustainability reporting 2020”, KPMG IMPACT, December, available at: home.kpmg/sustainabilityreporting.




DOI: http://dx.doi.org/10.58258/bisnis.v4i4.9768

Refbacks

  • There are currently no refbacks.


Lisensi Creative Commons
Ciptaan disebarluaskan di bawah Lisensi Creative Commons Atribusi-BerbagiSerupa 4.0 Internasional.

Bussiness Management
p-ISSN: 2828-8203, e-ISSN: 2828-7606
Jurnal ini diterbitkan oleh Lembaga Penelitian dan Pendidikan (LPP) Mandala.

Alamat: Jl. Lingkar Selatan, Perum Elit kota Mataram Asri Blok O. No. 35, Jempong Baru, Sekarbela, Kota Mataram NTB. Indonesia