Abstract
Issues of Islamic Social Reporting among Sharia-approved companies in Indonesia are still rare. Sharia-approved companies must comply with the sharia principles that have been approved by the Sharia Fatwa Council and the Financial Services Authority. The aim of this study is to obtain empirical evidence conformity of corporate environmental management accounting practices with the concept of Islamic Social Reporting. This study will also find evidence the effect of company's monitoring function to implementing Islamic Social Reporting.The practice of corporate environmental management accounting is an interesting and important study because environmental issues are a complex issue. For Sharia-approved companies, the commitment to comply with sharia principles in environmental activities provides assurance to its specific investor that the business activities run according to sharia principles. The commitment to prevent sharia-based business activities is stronger when the company's monitoring function also strengthens the company's objectives in protecting the environment.This study was conducted on Sharia-approved companies listed on the Indonesia Stock Exchange following the PROPER assessment from the Ministry of Environment. 38 companies were observed over a period of 3 years.The results of the study show that corporate governance has not provided a maximum monitoring function in the company. Companies are more obedient to the rules of law related to the environment. That is, for environmental protection companies are still in the concept of obeying the rules yet on awareness to integrate into the company's strategy.
Highlights
Corporate social responsibility is an important activity as corporate contribution to the community environment that aims to maintain the company's sustainability (Migdad, 2017; Moslemany and Etab, 2017)
This study aims to find evidence of environmental management accounting practices run by sharia-approved companies in the Indonesian Stock Exchange (IDX)
This study investigates the influence of corporate governance in accordance with sharia (Islamic Corporate Governance) as a mechanism to monitor the practice of environmental management accounting according to sharia
Summary
Corporate social responsibility is an important activity as corporate contribution to the community environment that aims to maintain the company's sustainability (Migdad, 2017; Moslemany and Etab, 2017). Corporate activities with the community environment are interdependent. The purpose of the company to maintain business sustainability is an activity to attract the public to receive products or services produced by the company so that the company gets a profit. The interdependence between companies and stakeholders is grown as a mutually beneficial relationship. If one feels aggrieved the company can be threatened sustainability of its business. One of the important factors that are maintained by the company is environmental sustainability. Corporate sustainability is closely related to the company's commitment to protect the environment
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