Beyond profit: How to create value in business by integrating ESG and sustainability accounting

An accounting method known as "sustainability accounting" takes into consideration how business operations affect society, the environment, and the economy. Stakeholder theory serves as a crucial basis for the application of sustainability accounting, which requires businesses to take stakeholders' interests into consideration when making decisions. This theory places a strong emphasis on the value of businesses' relationships with stakeholders and the role that stakeholders play in the decision-making process. The objective of this review is to evaluate the numerous research projects that have been carried out concerning the application of stakeholder theory in sustainable accounting. It is anticipated that the study's findings will help people comprehend the significance of applying stakeholder theory to sustainability accounting and will offer suggestions for businesses looking to improve their sustainability accounting procedures.

The application of the values of tauhid in entrepreneurship is an essential step in creating ethical and responsible business practices, particularly in a society with a Muslim majority, ensuring a balance between worldly interests and spiritual values. Furthermore, the integration of tauhid values can enhance public trust, which fosters the creation of sustainable and high-quality businesses. One example of this is the craft of sapu injuk, which carries local values and is oriented towards sustainability through the economic empowerment of the local community and the use of environmentally friendly raw materials. This study adopts a qualitative approach with a case study method, focusing on a broom-making entrepreneur in Kampung Muaradua, Desa Muaradua, Kadudampit District, Sukabumi Regency, West Java Province. Data were collected through in-depth interviews, field observations, and document analysis, aiming to explore the entrepreneur's perspectives and experiences in applying the values of Al-Tauhid in their business. The results of the study show that the entrepreneur implements Al-Tauhid principles by maintaining honesty in product quality, setting fair prices, and building respectful and responsible relationships with employees and business partners. Furthermore, they view their business as a form of worship, aiming not only for profit but also to bring blessings and provide social benefits to the surrounding community, especially through the empowerment of local labor. The application of Al-Tauhid values in this sapu injuk business has proven to have a positive impact, both in enhancing customer loyalty and in strengthening harmonious relationships with employees and the community. This study emphasizes that Al-Tauhid values can serve as a foundation for creating sustainable, ethical, and socially impactful businesses, encouraging Muslim entrepreneurs to prioritize spiritual values in their business practices in order to achieve blessings and long-term business success.

PT. Pupuk Kaltim is biggest manure manufacturer in Indonesia, where its market area covering entire Sulawesi, Bali, some of Kalimantan East Java, Papua, Japan, Taiwan, India, and Australia. Main produced product of PT Pupuk Kaltim is based fertilizer. To meet the demand, PT Kaltim produce up to 2,3 million tons per year.Identifiaction process of supply chain done by accesing company website of PT Kaltim. Then it is outlined each step of supply chain from aggregate planning, production process, suppliers selection, quality mangement, warehousing, performance measure and used transportation unit. From that criteria would visible supply chain of based-fertilizer in PT Pupuk Kaltim. By having long and wide supply chain, PT Pupuk Kaltim still have bullwhip effect because of inacurate in forecasting cause over-stock or out of stock in many production period. In quality, PT Kaltim had got ISO 9001, ISO 14001 and ISO 17025 certification in production management and sea-port.

As global entities encounter increasing demands to reconcile economic goals with environmental and social responsibilities, the integration of sustainability accounting and artificial intelligence (AI) provides a scientific framework for enhancing ESG performance. This paper explores the role of AI-enhanced sustainability accounting as a crucial instrument for measuring, analyzing, and improving the effects of organizations on ecological and social systems. By leveraging AI's computational strengths - such as predictive modeling, real-time data analysis, and automated tracking of metrics -sustainability accounting transitions from a static reporting mechanism to a dynamic, decision-oriented field. Notable applications include simulations of carbon footprints based on various scenarios, optimization of resources within a circular economy, and automated adherence to international standards. The research highlights AI's potential to improve transparency and accountability through standardized reporting, while also reducing risks by providing predictive insights into vulnerabilities within supply chains and shifts in regulations. Additionally, machine learning facilitates ethical impact assessments, addressing biases in labor practices and promoting fair AI implementation. Nonetheless, challenges such as data fragmentation, the need for algorithmic transparency, and the requirement for interdisciplinary expertise remain, calling for effective solutions to ensure scalability. Empirical findings suggest that organizations that implement AI-enhanced sustainability accounting experience significant gains in operational efficiency, stakeholder trust, and resilience against climate-related challenges. This study advocates for a comprehensive governance framework that emphasizes ethical AI, interoperable data systems, and collaboration among stakeholders. By framing sustainability accounting as a science-based approach bolstered by AI, this research contributes to the ongoing dialogue on achieving the United Nations Sustainable Development Goals (SDGs) while encouraging innovation in the context of the Fourth Industrial Revolution

Various issues regarding human rights violations, exploitation of nature, poverty, war, disease, and other sustainability problems have triggered the birth of the Sustainable Development Goals (SDGs) targeting seventeen interlinked objectives by 2030. The implication of this movement, initiated by the United Nations, is a challenge for all organizations and communities to take responsibility for sustainability reporting. There have been many studies and research forums related to reporting, such as Global Reporting Initiative (GRI) and Integrated Reporting (IR). Despite all the progress that has been made by the world community for the success of the SDGs, there is still one fundamental point that has not been widely researched: spirituality. This study believes that without good spirituality, no business entity can carry out programs that are aligned with the SDGs effectively and honestly. This study views this as a gap that needs to be studied more deeply in terms of spirituality and the authenticity of the SDGs. By adopting two case studies, "Be Well, Work Well” program by PwC and movements in harmony with SDGs by idol group BTS, with a literature study approach, this study aims to build a rationalization conceptual model that combines spiritual awareness, SDGs, and business value creation. The results of this study indicate that spirituality is a fundamental aspect of the impact of the SDGs, both internally and externally oriented. Finally, a movement of kindness that is carried out correctly and sincerely will have an impact on increasing business value. This study reveals that spiritual and material aspects are an inseparable unity.

The <scp>SDGs</scp>: A change agenda shaping the future of business and humanity at large

Knowledge integration is one of the most important approaches of knowledge applications to achieve sustainable competitive advantages and business value. While it appears from literature analysis, there is not direct link between knowledge integration and business value but rather a complex and indirect relationship. Many companies frequently embark on knowledge integration without a explicit cognition of what business benefits they could expect. This article focuses on the current research status of knowledge integration and its impact on business value by means of an empirical survey study on 144 companies in China. To investigate the particular causality, exploratory factor analysis is used to test the classification of knowledge integration and business value. Moreover, canonical correlation analysis and stepwise regression analysis are deployed to scrutinize the impact of knowledge integration on business value and its measures. The results from statistical analyses show that knowledge integration has significant impact on business value. Finally, managerial signification is discussed.

Purpose: To identify the business values underlying the strategic decisions of indigenous black South African (IBSA) family businesses and to explore a possible relationship between these values and business outcomes.Design/methodology/approach: The study adopted a qualitative methodological approach and utilised seven IBSA family business cases. Data were collected from 17 selected participants using semi-structured interviews. The reflexive thematic analysis method was used to analyse the data transcripts.Findings/results: Ten business values were identified as underlying the strategic decisions of IBSA family businesses, namely customer focus, innovation and creativity, business traditions, continuous learning, employee empowerment and development, open communication, business sustainability, teamwork, partnerships and business reputation. These values are considered a strategic resource because they influence the strategic business decisions made and ultimately contribute to the business outcomes and long-term survival of the family business.Practical implications: The study provides insights into the relationship between business values, strategic decisions and business outcomes in the context of IBSA family businesses. Therefore, family business owners and leaders should ensure that behaviours, actions and strategic decisions are aligned to their business values so that these values can serve as the strategic resource that scholars claim they are.Originality/value: While several studies on values have been conducted in European or Western contexts, this study provides insights into the possible relationship between business values, strategic decisions and business outcomes from an indigenous African family business perspective.

Sustainability accounting plays a critical role in supporting the achievement of the Millennium Development Goals (MDGs). This study ‎aims to understand how non-star hoteliers perceive sustainability accounting. Conducted in Bali, Indonesia, the research involved 123 non-‎star hotels as participants. Data were analysed using descriptive statistics with the assistance of SPSS 20 software. The results indicate that ‎the level of understanding and awareness among non-star hoteliers in Bali regarding sustainability accounting remains relatively low. Fur-‎Furthermore, the implementation of sustainability accounting faces various obstacles, including a lack of understanding or information about ‎sustainability risks and benefits, low managerial awareness, and limitations in the expertise, skills, and time required to produce sustainability ‎accounting reports. Non-star hotel managers in Bali believe that implementing sustainability accounting can yield benefits, such as fostering improvements in management processes on a sustainable basis and promoting responsible business practices across social, environmental ‎, and economic dimensions. However, they also consider that regulations related to sustainability in Bali are still inadequate. Theoretically, ‎this research contributes to the legitimacy of the theory, suggesting that legitimacy is not inherent but rather constructed through social, cul‎tural, and political processes. Practically, this research enhances understanding of the importance of sustainability accounting and supports ‎efforts to achieve the Sustainable Development Goals (SDGS)‎.

Ambidexterity refers to conditions where an organization performs innovation learning activities in both explorative and exploitative way. Exploitative innovations activities are related to deepening capabilities currently exist, while explorative activities related to pursuit new opportunities. The research objective is to analyze social capital that leads to innovation capability of the family firm. Family firm is chosen based on the uniqueness nature of business that interplays with family and business value. The study showed that innovation learning activities process in family firm conducted by founder who acts as both owner and manager exercised in strategic and contextual way. In this sense, the owner provides social support, trust, and remuneration systems that support the innovation activities learning of their employees. Social capital of innovation learning activities in family firm becomes important because value of family business overlaps between value as a business entity and value as a family. Family businesses chosen are in beauty parlour, culinary, and fashion area. Data in this research are collected through in-depth interview with selected informants in 2017.

The attention to sustainability has been increasing rapidly due to environmental and social issues, as well as increasing business risks. It is changing an understanding how business is valued, putting pressure on, and also bring-ing opportunities for business performance. Along with the increasing weight of sustainability aspects, accessing the value of the company has become a more complex task. The literature analysis suggests different implications on the impact of sustainable development on business value, with most finding a positive relation; however, no clear measures to evaluate such impact can be distinguished. The aim of this paper is to find out the impact of sustainable development on the value of the company. Business sustainability is analysed through the aspects of Environmental, Social, Govern-ance (ESG), which is currently the most emerging sustainability framework, with a special emphasis on governance. Meanwhile, business value is investigated through literature review by determining a range of possible internal and external measures. Panel regression analysis is considered as a method in order to discover a link between sustainable development and business value through selected time period. The results suggest that sustainable development could have a positive impact on business value in the long term.

This study aims to identify and analyze various factors that affect sustainability accounting through the Systematic Literature Review (SLR) approach using the PRISMA method. Sustainability accounting is increasingly important in modern business practices due to the increasing demands on transparency and social and environmental responsibility. The study examined ten scientific articles published between 2019–2025 and met inclusion criteria based on topics, methodologies, and relevance to the application of sustainability accounting. The results of the study show that some of the main factors that influence the implementation of sustainability accounting include intellectual capital, technology support, organizational culture, local cultural values, stakeholder engagement, accounting information systems, reporting standards such as GRI and IFRS, and government regulations. These findings reinforce the view that the successful implementation of sustainability accounting is highly dependent on the synergy between internal and external factors of the organization. This research contributes to academics and practitioners in understanding the dynamics and challenges of sustainability accounting, and recommends the need for institutional support, managerial capacity building, and the use of technology for more transparent and accountable reporting.

PurposeThe purpose of this paper is two-fold. The first is to provide insight into the academic life, teaching and research activities of active participants in the sustainability accounting and management academic community in North America. The second is to provide readers with an overview of the papers in this special issue.Design/methodology/approachTo meet the first objective, we specifically sought out those who self-identify as sustainability accounting and management academics, based in North American universities and who actively engage in the sustainability academic community in North America. Using an anonymous online survey, this group was asked to respond to various questions about their academic life, research and teaching activities.FindingsSurvey respondents report that they choose to focus on sustainability accounting and management because they want to make a difference (change the world). To that end, the respondents identify carbon emissions and climate change, social issues such as inequalities, as well as grand challenges and sustainable development goals, as important research topics to pursue in the future. While passionate about their research topics, respondents generally note that research outlets that will serve to significantly move their careers forward are difficult to find. A relatively small number of respondents teach sustainability accounting or management, however, most courses taught are dedicated to the topic and teaching sustainability was identified as amongst the most enjoyable aspects of their academic lives.Practical implicationsWith study respondents feeling closed out of a number of mainstream journals, career paths at North American institutions could appear somewhat limited for those choosing sustainability accounting and management research as a focus, interest and even passion. This is perhaps even more profound on the teaching side where from a practical perspective, we need to be teaching accountants and managers the significance of sustainability in and for the profession, yes – but even more so for society broadly.Social implicationsAs we move into the digital age, it is important that professionals bend their minds to sustainability as much as they do to keep up with the “pace of change” on other fronts. A potential risk is that “high-tech” subsumes equally important social aspects that need to be embedded in the process of generating accounting and management professionals.Originality/valueTo the best of our knowledge, this is the first time a survey on the work experiences of a sample of scholars teaching and doing research in the area of sustainability accounting and management has been presented for publication. It is meant to provide some descriptive insights into what drives some active participants in this group of academics and reflect on where the future might lead as sustainability becomes an urgent necessity rather than a choice. These descriptive insights and reflections provide a starting point for future inquiries.

PT Kaltim Daya Mandiri is a utility provider company located in Bontang, East Kalimantan, Indonesia, currently planning to invest in a new project investment by constructing a nitrogen plant in Bontang and a utility center plant in West Papua to support the business expansion of PT Pupuk Kalimantan Timur in the eastern region of Indonesia. To execute the project, the company must ensure the adequacy of cash flow to support the existing operational and project activities needs; therefore, it requires cash flow management and the right financing strategy to ensure the company’s financial performance remains stable. In this study, the analytical method used to generate a strategic formulation to optimize financial performance during projects is using quantitative and qualitative analysis. The strategic formulation comprises a financial strategy, specifically the option of project financing and a tax planning strategy related to tax refund and tax exemption. From the exploration of several strategies, there are two options for a combination of strategies, namely Scheme 1: Tax planning strategies and financial strategies through utilizing banking products (investment loan and short-term loan) and Scheme 2: Tax planning strategies and financial strategies through utilizing debt securities (corporate bonds and medium-term note). The simulation shows that in terms of the efficiency aspect towards interest cost imposed during the period, impact on the company’s cash flow during the project development period, and the proforma of financial performance, Scheme 1 is more favorable compared to Scheme 2. Using Scheme 1, the bank loan’s interest will be imposed on the cash flow statement and profit and loss statement after the project is declared commercial. During the project construction, the company will only be exposed to an interest construction, which will be an additional loan balance after the project commercial. In addition, instalment payments (principal and interest portion) have an impact on reducing the loan balance, and the future interest expense will decrease. Whereas, by using Scheme 2, the company will be directly burdened by interest coupons that need to be paid quarterly and constantly, which can affect cash flow and profit and loss statements directly.

Several key studies have shown that the higher education sector is in need of new business models in order to stay relevant and sustainable in the New Digital Age. Pressures and drivers of change – funding, changes in the technology and Fourth Industrial Revolution (4IR), digital socio-economy, and business model, to name a few – that demand institutional change by re-examine its existing business model and value proposition, if success is to be sustained over the long term. The digital changes are dynamic and complex. This paper adopted the design and system thinking approach. Strategy canvas with business modeling tools such as the Environmental Map (EM), Business Model Canvas (BMC) and Value Proposition Design Canvas (VPC) are modeling tools used to design, evaluate alternative business models and value propositions. The tools allows us to design business model options that create value for the business, and value propositions that create value for the customers, thus enabling the creation of sustainable businesses. In this paper we explore the use of business modeling tool to analyse, formulate, and design sustainable business models for the University of the Future (UotF) in facing the New Digital Age challenges and opportunities. Depending on the value proposition offered to targeted customer segments, this paper has established generic business model prototypes for UotF in the facing the challenges and opportunities created by the New Digital Age and 4IR. In our opinion these generic prototype options will help university decision makers, planners and relevant stakeholders to continuously enhance and customise sustainable, agile, and competitive business models.