VOLUNTARY DISCLOSURE ON PT SEMEN INDONESIA TBK: LEGITIMACY CRISIS ON REMBANG PLANT CONSTRUCTION

Gentiga Muhammad Zairin,Elvia R Shauki

doi:10.47312/ambr.v3i02.196

Abstract

This study aims to evaluate how the legitimacy strategy was carried out by PT Semen Indonesia Tbk to repair the legitimacy due to the construction of the Rembang plant which was suspected of damaging the environment. Research problems arose due to inadequate company disclosures, resulting in a series of protests. This research has a contribution to understanding further how the company's strategy in facing the crisis of legitimacy. This research also uses web-based disclosure data and is processed with Nvivo 12 Pro software that has never been done before. This research uses legitimacy theory, especially strategies to repair legitimacy. This study uses case studies with triangulation of qualitative data and quantitative data, all of which are secondary data. Qualitative data in this study is the result of data processing using NVivo 12 Pro software from disclosure media such as annual reports, sustainability reports, websites, online-based newspaper, and corporate social media accounts. Quantitative data in this study include the number of words, number of sentences, and percentage of disclosures. The findings in this study were the strategy of "deny", "justify", "create monitors", "replace personnel", "revise practices", and "avoid panic" were used by companies. The strategy of "excuse" is not used because the company does not feel guilty. The dominant media used is a statement through the online-based newspaper. The use of social media and sustainability report shows very little legitimacy efforts.Keywords: Legitimacy Crisis, Legitimacy Theory, Plant Construction, Repairing Legitimacy, Voluntary Disclosure

Highlights

The environment is a topic that is often discussed at this time, especially about sustainable development. Russell & Thomson (2009) state that sustainable development is a narrative that has been developed in many western countries and has become a lifestyle and form of social order. Moneva, Archel, and Correa (2006) state that before the 1980s, social issues and ecological issues were ignored in shaping management goals because they did not have a significant impact on the company's financial performance
This research will focus on explaining how the legitimacy strategy used by PT Semen Indonesia Tbk in voluntary disclosures related to the construction and operation of a new plant in Rembang, Central Java to repair legitimacy and attaining legitimacy again
Because the research problem is about the construction of the Rembang cement plant, the keyword used to search related online-based newspaper is the "Rembang cement plant." These keywords are entered into the Google search engine

Summary

Introduction

The environment is a topic that is often discussed at this time, especially about sustainable development. Russell & Thomson (2009) state that sustainable development is a narrative that has been developed in many western countries and has become a lifestyle and form of social order. Moneva, Archel, and Correa (2006) state that before the 1980s, social issues and ecological issues were ignored in shaping management goals because they did not have a significant impact on the company's financial performance. The environment is a topic that is often discussed at this time, especially about sustainable development. Russell & Thomson (2009) state that sustainable development is a narrative that has been developed in many western countries and has become a lifestyle and form of social order. The company has been listed as a public company on the Indonesia Stock Exchange (formerly the Jakarta Stock Exchange) since July 8, 1991, with a stock code: SMGR. On December 20, 2012, the company officially acted as the Strategic Holding Company and at the same time changed its name, from PT Semen Gresik (Persero) Tbk to PT Semen Indonesia (Persero) Tbk (PT Semen Indonesia Tbk, 2017), on referred to as PT Semen Indonesia

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