Effect of Environmental Performance on Environmental Disclosures of Manufacturing, Mining and Plantation Companies Listed in Indonesia Stock Exchange

Authors

  • Rudi Kurniawan Perusahaan Listrik Negara, Bali, Indonesia

Keywords:

Government Regulation No. 47 of 2012, social and environmental responsibility, environmental performance, environmental disclosure

Abstract

The issuance of Government Regulation No. 47 of 2012 on Social and Environmental Responsibility enables companies to take account of their activities in the social and environmental field and to report in the company's annual report. This study aims to obtain empirical evidence about the effect of environmental performance on environmental disclosure with Government Regulation. 47 of 2012 as a moderating variable. In this study, the variable of environmental performance was measured using Corporate Performance Rating Assessment Program (PROPER) which is one of State Ministry of Environment's efforts to encourage corporate compliance in environmental management through information instruments, and the variable of environmental disclosure was measured by GRI 3.0 (Global Reporting Initiative) score. The variable of Government Regulation No. 47 of 2012 is only used to divide the data group into 2 sub-groups, i.e. groups of data before and after government, regulation was issued. The populations of this research are mining companies, manufactures and plantations listed on the Indonesia Stock Exchange (IDX) and included in PROPER 2010-2013. Technique of collecting data was by using purposive sampling method. The total company in the observation was 92 companies. The hypotheses were tested by using linear regression analysis with moderation variable. The results of this study indicate that environmental performance has a significant positive effect on environmental disclosure, while Government Regulation No. 47 of 2012 has no effect on strengthening the relationship between environmental performance and environmental disclosure.

References

Aalders, M. (1993). Regulation and In‐Company Environmental Management in the Netherlands. Law & Policy, 15(2), 75-94.

Adams, C. A. (2004). The ethical, social and environmental reporting-performance portrayal gap. Accounting, Auditing & Accountability Journal, 17(5), 731-757.

Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2004). The relations among environmental disclosure, environmental performance, and economic performance: a simultaneous equations approach. Accounting, organizations and society, 29(5), 447-471.

Anderson, M. (2001). Transnational corporations and environmental damage: Is tort law the answer. Washburn Lj, 41, 399.

Azapagic, A. (2004). Developing a framework for sustainable development indicators for the mining and minerals industry. Journal of cleaner production, 12(6), 639-662.

Basalamah, A. S., & Jermias, J. (2005). Social and Environmental Reporting and Auditing in Indonesia. Gadjah Mada International Journal of Business, 7(1).

Bhattacharya, C. B., Korschun, D., & Sen, S. (2009). Strengthening stakeholder–company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business ethics, 85, 257-272.). Corporate social responsibility: Doing well by doing good. Business Horizons, 50(3), 247-254.

Buhmann, K. (2006). Corporate social responsibility: what role for law? Some aspects of law and CSR. Corporate Governance: The international journal of business in society, 6(2), 188-202.

Carroll, A. B. (1991). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business horizons, 34(4), 39-48.

Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: A review of concepts, research and practice. International journal of management reviews, 12(1), 85-105.

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, organizations and society, 33(4), 303-327.

Cong, Y., & Freedman, M. (2011). Corporate governance and environmental performance and disclosures. Advances in Accounting, 27(2), 223-232.

Deegan, C., & Rankin, M. (1996). Do Australian companies report environmental news objectively? An analysis of environmental disclosures by firms prosecuted successfully by the Environmental Protection Authority. Accounting, auditing & accountability journal, 9(2), 50-67.

Du, S., Bhattacharya, C. B., & Sen, S. (2010). Maximizing business returns to corporate social responsibility (CSR): The role of CSR communication. International Journal of Management Reviews, 12(1), 8-19.

Falck, O., & Heblich, S. (2007). Corporate social responsibility: Doing well by doing good. Business Horizons, 50(3), 247-254.

Freeman, R. E., Wicks, A. C., & Parmar, B. (2004). Stakeholder theory and “the corporate objective revisited”. Organization science, 15(3), 364-369.

Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of business ethics, 53(1), 51-71.). Corporate social responsibility: what role for law? Some aspects of law and CSR. Corporate Governance: The international journal of business in society, 6(2), 188-202.

Hammond, A. (1995). Environmental indicators: a systematic approach to measuring and reporting on environmental policy performance in the context of sustainable development (No. 333.7/H225). Washington, DC: World Resources Institute.

Handayani, R., Wahyudi, S., & Suharnomo, S. (2017). The effects of corporate social responsibility on manufacturing industry performance: the mediating role of social collaboration and green innovation. Business: Theory and Practice, 18, 152.

Imam Ghozali. (2011). Aplikasi Analisis Multivariate dengan Program IBM SPSS 19. Semarang: Badan Penerbit Universitas Diponegoro.

Jomo, K. S. (2001). Introduction: Growth and structural change in the second-tier Southeast Asian NICs. In Southeast Asia’s Industrialization (pp. 1-29). Palgrave Macmillan UK.

Kleine, A., & Von Hauff, M. (2009). Sustainability-driven implementation of corporate social responsibility: Application of the integrative sustainability triangle. Journal of Business Ethics, 85, 517-533.

Neu, D., Warsame, H., & Pedwell, K. (1998). Managing public impressions: environmental disclosures in annual reports. Accounting, organizations and society, 23(3), 265-282.

Patten, D. M. (2002). The relation between environmental performance and environmental disclosure: a research note. Accounting, organizations and Society, 27(8), 763-773.

Pratama, A. G., & Rahardja, R. (2013). Pengaruh Good Corporate Governance dan Kinerja Lingkungan Terhadap Pengungkapan Lingkungan (Studi Empiris Pada Perusahaan Manufaktur dan Tambang yang Terdaftar Pada Bursa Efek Indonesia (BEI) dan Termasuk dalam PROPER Tahun 2009-2011) (Doctoral dissertation, Fakultas Ekonomika dan Bisnis).

Schulz, W., & Held, T. (2004). Regulated Self-Regulation as a Form of Modern Government: an analysis of case studies from media and telecommunications law. Indiana University Press.

Wang, H., Bi, J., Wheeler, D., Wang, J., Cao, D., Lu, G., & Wang, Y. (2004). Environmental performance rating and disclosure: China's GreenWatch program. Journal of Environmental management, 71(2), 123-133.

Wheeler, D., & Elkington, J. (2001). The end of the corporate environmental report? or the advent of cybernetic sustainability reporting and communication. Business strategy and the environment, 10(1), 1.

Downloads

Published

2017-12-30

Issue

Section

Articles