Environmental, Social, and Economic Sustainability: Do Big Companies in Indonesia Care?

Abstract

Companies are the main actors that utilize Indonesia’s natural resources, the responsibility of maintaining surrounding conditions such as environmental, social, and economic is an absolute responsibility that cannot be avoided. This study aims to determine the motivation of management in providing accountability for its activities to stakeholders. Through the lens of stakeholder theory, it is expected to find out the management’s efforts in showing the public all its accountability activities. LQ45 companies are the largest companies that are fully trusted by various stakeholders to be the main attraction for research studies. The sustainability report prepared throughout 2019-2022 and research data analyzed using moderation regression analysis is expected to provide an overview of the company’s concern for the surrounding. The results show the environmental, social, and economic sustainability of large companies in Indonesia is captured in the report shows a weak level, their concern increases when the company experiences an increase in profits. Pressure from various company stakeholders does not necessarily increase their concerns. The company will be encouraged to disclose when the company experiences an increase in profitability. However, creditors provide the most dominant pressure to make companies open about their activities. Suggestions for future research can use other theoretical perspectives such as legitimacy and stewardship in seeing management’s concerns.