Abstract
The establishment of a company cannot be separated from its environmental and social factors. Sustainability reports start from those applied to current companies because there are forms of corporate accountability to stakeholders and community considerations of the company to provide social responsibility. This study finds out and empirically proves that there are differences in each Global Reporting Initiative (GRI) G4 indicator in the company’s sustainability report in each industry classification. The authors investigate the dominant indicators in each industry classification based on sustainability reports. The data are obtained from 28 GRI G4-based company sustainability reports in 2016 and 2017. The analytical method in the study is the K-means clustering analysis. The results of study indicate the differences in GRI G4 in 2016 and 2017. The researchers find out that the dominant indicator expressed in the financial industry is an economic indicator. Meanwhile, in the mining, transportation and infrastructure industries, basic and chemical industries etc. the dominant indicators to be disclosed are environmental indicators. This research provides a theoretical basis for sustainability and environmental reporting, particularly in the context of developing countries. It is expected that this study should also inform business practitioners as well as policymakers vis-à-vis sustainability reporting in practice.
Highlights
Environmental damage has become a serious problem in recent years
The results show that H4: There is a disclosure of the dominant insustainability report disclosure has a significant dicators in the sustainability report on the positive impact on banking performance, so it can classification of the transportation and inbe viewed that the increasing sustainability report frastructure industries
This analysis uses purposive sampling by looking at sustainability reports of the companies listed on the Indonesian Stock Exchange (IDX)
Summary
Environmental damage has become a serious problem in recent years. Many companies exploit natural resources and human resources to increase their profits. Firms should pay attention to their stakeholders because they are the parties who both influence on and are being influenced by the policies and action taken by the firm. The suc- Legitimacy theory states that an organization can cess of a company depends on its ability to bal- only survive if the community in which it is loance the various interests of stakeholders SR ganizations continually strive to act in accordance benefits are based on the GRI framework, namely: with the boundaries and norms in society, so that (1) as an organizational performance testing techtheir activities are accepted according to the per- nique with regard to norms, laws, standard perforceptions of external parties (Deegan, 2002).
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