Responsible Business Research Articles

Accounting for Externalities and Financial Performance of Listed Industrial Goods Companies in Nigeria

Good financial performance of companies gives confidence to shareholders and investors on returns on their investment and guaranteed going concern. However, literature has shown that poor financial performance has made some companies to lose their competitive edge, and inability to achieve growth objective. Accounting for and reporting firms’ externalities impact is becoming increasingly important globally, investors have raised the bar on what they consider material to the performance of their investments, expectation of long-term profitability and sustainability of the company. This study examined the effect of accounting for externalities on financial performance proxied by Return on Asset (ROA)) of listed industrial goods in Nigeria. The study adopted Ex-post facto research design. The population for the study comprised of fifteen (15) Industrial Goods companies listed on Nigeria Stock Exchange as at 31st December, 2021. The Panel data were sourced from audited annual reports for the period of ten (10) years spanning from 2012-2021. Data were analyzed using descriptive and inferential statistics. The findings of the study revealed that accounting for externalities had significant effect on ROA (AdjR<sup>2</sup> =0.6010, F (3,96) = 3.99<sup>**</sup>; p = 0.0100). The study concluded that accounting for externalities has significant effect on financial performance of listed industrial goods companies in Nigeria. It was recommended that standard-setting bodies in Nigeria like the Financial Reporting Council of Nigeria should develop mandatory guidelines and standards for accounting and reporting of externalities to foster a more sustainable and responsible business environment.

Corporate Social Responsibility Practices of Selected Airline Companies: Inputs for a Sustainable Aviation Service

This paper tries to identify the strategic corporate social responsibility of selected airline companies to ascertain inputs for the creation of a sustainable service delivery, by looking at the implementation level of its corporate social responsibility in the environmental, philanthropic, economic and ethical areas. The study shows that in terms of environmental responsibility, waste segregation has the highest level of practice, while carbon footprint reduction is the lowest. Philanthropic activities participated in by employees is the most frequently practiced among other philanthropic responsibility initiatives, while the provision of scholarship grants is the least practiced. For economic responsibility, the recruitment of diverse talent received the highest mean score indicating it as the most practiced activity, while financial management strategy practices is the most challenged. As far as ethical responsibility is concerned, the practice of honesty is prevalent, while direct stakeholder involvement in planning the manual of ethical operations is almost none. The study also explored whether there was a significant difference in the assessment of CSR strategies between the two groups of respondents. The results indicated that there was a significant difference in the assessments of employees and passengers in terms of environmental, philanthropic, economic, and ethical responsibilities in comparison to management administrators. Moreover, the challenges encountered in the implementation of CSR strategies were identified and ranked, providing insights into the perceived difficulties faced by airline companies in implementing CSR strategies. Based on the findings of the study, recommendations for responding to the challenges of implementing CSR strategies were proposed. These recommendations include additional signage for environmental awareness, ensuring the sustainability of philanthropic activities, crafting financial measures to address constraints, and ensuring sustainable implementation of its manual of operation. The findings and recommendations provides inputs to for a sustainable service delivery and promoting responsible business practices in the airline industry.

Unveiling the dynamic nexus between corporate social responsibility, innovations and financial performances in 21st-century Indian start-ups

Purpose With the rapid rise in the number of start-ups, corporate social responsibility (CSR) can principally contribute to the nation’s socioeconomic development, making it more critical. This study aims to explore the effect of sustainability practices on a firm’s performance with competitive advantage (CA) and innovation (INN) as the mediating variable. Design/methodology/approach An exhaustive literature review was done to identify the constructs relationship for this study, and a questionnaire was used to gather the data from the start-up owners. In total, 400 samples were received, and partial least squares structural equation modeling was used for testing and validating the proposed hypotheses. Findings CSR and financial performance (FP) have a significant relationship. According to this study’s findings, innovation and CA substantially mediate the relationship between a firm’s FP and CSR. This study will highlight how CSR practices stimulate organizational creativity, problem-solving and strategic thinking. It will also demonstrate how CSR can foster a culture of innovation that generates long-term value and positively impacts FP. Practical implications It will aid in improving the knowledge of start-up owners that CSR is more than just pure altruism or philanthropy; instead, it must be promoted strategically as an investment that boosts productivity and creativity while also bringing overall financial benefits to the company. It will ultimately enhance the start-ups’ ability to improve the economy and society. Furthermore, this study holds the potential to inform policy discussions and recommendations for fostering responsible business practices in the Indian start-up ecosystem. Policymakers can benefit from insights into how regulations and incentives can be designed to encourage start-ups to adopt CSR practices that not only fulfill legal obligations but also contribute to their CA and FP. Originality/value This study provides empirical validity to establish linkages between sustainability measures on the FP concerning start-ups that were not considered in the prior studies. Identifying the current conceptual framework and CA and Innovation as the two major factors influencing CSR in Indian enterprises is a novel contribution. This study aims to fill the research gap. By unravelling the intricate dynamics between CSR, FP and CA, the research contributes to the understanding of how start-ups can navigate the complex interplay of social responsibility and business success in the Indian context.

Enhancing employees’ quality of work life and engagement to foster corporate social responsibility: a data mining approach

PurposeThis paper aims to present a dynamic model for strategic and personalized decision-making in human resources (HR), using data mining techniques to enhance corporate social sustainability (CSS). The focus is on the interconnectedness of employee engagement (EE), enablement and the quality of work life.Design/methodology/approachThe proposed model integrates various HR data, including demographic information, job specifications, payment and rewards, attendance and absence, alongside employees’ perceptions of their work-life quality, engagement and enablement. Data mining processes are applied to generate meaningful insights for senior and middle managers.FindingsThe study implemented the model within a production organization, revealing that factors influencing EE and enablement differ based on gender, marital status and occupational group. Performance-based rewards play a significant role in enhancing engagement, regardless of the reward amount. Factors such as “being recognized for competency” influence engagement for women, while payment has a greater impact on men. Engagement does not directly influence the quality of work life, but subcomponents like perceived transparency and the organization’s processes, particularly the “employee performance evaluation system,” improve work-life quality.Research limitations/implicationsThe findings are specific to the studied organization, limiting generalizability. Future research should explore the model’s effectiveness in different cultural and organizational settings.Practical implicationsThe proposed model provides practical implications for organizations that enhance CSS. Organizations can gain insights into factors influencing EE and enablement by using data mining techniques, enabling informed decision-making and tailored human resource management practices.Social implicationsThis research addresses the societal concern regarding the impact of business activities on sustainability. Organizations can contribute to a more socially responsible and sustainable business environment by focusing on work-life quality and EE.Originality/valueThis paper offers a dynamic model using data mining and machine learning techniques for sustainable human resource management. It emphasizes the importance of customization to align practices with the unique needs of the workforce.

Technological approach in innovative activities of enterprises in formation of marketing products: socio-economic aspects

Methods. During the research, the following methods were used as: logical and historical method – when studying the evolution of outdoor advertising under the influence of the emergence of new technologies; analysis and synthesis – when identifying key types of digital technologies that have an impact on increasing the efficiency of the company's marketing activities; factor analysis – when establishing the influence of innovative technologies in the format of LED-neon and 3D printing on the effectiveness of advertising campaigns. Results. The evolution of the development of outdoor advertising is analyzed in view of the changes caused by the transition of the technical and technological system of society to a new, higher level. Modern trends in the development of the technical and technological factor have been identified, namely: the transition to the digital economy. The components of modern innovative technologies used in the field of outdoor advertising are singled out and their influence on the effectiveness of the company's marketing activities is demonstrated. Innovative technologies such as LED-neon and 3D printing are characterized, and their role in increasing the effectiveness of advertising campaigns through the creation of innovative technological marketing products in the form of digital billboards with LED screens and 3D projection is shown. The main socio-economic results of the use of digital tools in outdoor advertising are identified, which include: the possibility of creating complex and detailed advertising structures with high accuracy, which attracts the attention of potential customers; wider possibilities of using interactive elements and the possibility of personalizing advertising messages, which increases the level of customer engagement, as well as the level of trust and loyalty to the brand. This leads to an increase in the client base and an increase in the company's profits. Novelty. The article proves the effectiveness of digital technologies in ensuring the effectiveness of the company's marketing activities, in particular, the impact on the economic indicators of outdoor advertising. The relationship between the improvement of advertising through LED-neon and 3D printing and the growth of environmental awareness of consumers and social responsibility of business has been established. Practical value. It was determined that innovative technological developments are a critical element of successful interaction between contractors and customers in the field of implementation of outdoor advertising projects. They contribute to the growth of enterprises, increase the efficiency of their marketing activities and create stable socio-economic ties. Permanent implementation of innovative technologies and adaptation to turbulent market conditions will allow to achieve tactical and strategic goals, ensuring a high level of interaction and efficiency.

SMM-маркетинг у діяльності виробників пива в Україні

Alcoholic beverage producers contribute significantly to state budget revenues. Among these beverages, beer holds a substantial share, often serving as a vital aspect of social interaction. To stimulate demand, beer producers engage in proactive marketing strategies. This article aims to examine current trends in the Ukrainian beer market, analyze the social media activities of major producers, and propose strategies for their enhancement. It has been established that military actions have had a negative impact on the markets of all goods, including the beer market, where demand and supply began to recover in the second half of 2022. However, there is fierce competition in the beer market. To strengthen their competitive positions, producers strive to build strong brands, introduce innovations, offer new product types, expand distribution networks and communication channels, engage in socially responsible business activities, and disseminate information about them using traditional and online communications. In today’s environment, social media is one of the most important channels for brand promotion and communication with the target audience. Analyzing consumer feedback on social media, studying statistics, and other parameters enable understanding what users like and what manufacturers need to improve. Research has shown that PrJSC “Obolon” and “Persha Pryvatna Brovarnya” Ltd do not pay sufficient attention to the social network Facebook, as evidenced by the low number of posts and interactions with consumers. PrJSC “Carlsberg Ukraine” surpasses these main competitors on this social network in terms of community size, number of posts, and total interactions, but lags behind PrJSC “Abinbev Efes Ukraine” in the number of posts and their shares. On Instagram, although PrJSC “Carlsberg Ukraine” has a small audience, it surpasses “Persha Pryvatna Brovarnya” Ltd in terms of community size and total interactions. The leader in this social network in terms of the number of posts is PrJSC “Abinbev Efes Ukraine”. PrJSC “Obolon” does not have its own page on the Instagram social network. Research has shown that PrJSC “Carlsberg Ukraine” is the leader among competitors in terms of community size, number of videos, and total views on the YouTube social network. PrJSC “Abinbev Efes Ukraine” does not pay attention to this social network. Measures have been developed to intensify the activities of beer producers in various social networks – Facebook, Instagram, and YouTube, and recommended topics for posts have been presented.

Study of Firm Performance: EMS Adopter Firms to Achieve Sustainable Business Goals

EMS effectiveness is studied concerning financial, environmental, and competitive outcomes among corporations. A comparative analysis of Companies with EMS integrated into their management systems will be made with those Companies without EMS in this research. EMS’s contribution to business sustainability is also analyzed and validated with the help of quantitative research methods including panel data using the Generalized Method of Moments (GMM) and regression analysis. The research focuses on the differences in the financial results, the positive impact on the natural environment, and competitive advantage of enterprises that voluntarily apply the EMS compared to those that do not. The findings of this study shown that EMS adoption enhance environmental performance and offer competitive advantage by enhancing stakeholder relations and market positioning. This alters the nature and benefits that organizations experience while implementing EMS as some companies initially experience cost implications and functioning challenges but in the long run, EMS brings profitability and cost-effectiveness. It may provide more information on how EMS promotes and can sustain responsible business activities and the most effective means of doing so. The above analysis may be useful to firms and policy makers in understanding how to encourage sustainability that will benefit economies and the natural environment in the long-term.

REPLACE INTERNAL AUDIT IN ENSURING SUSTAINABLE ECONOMY

Internal audit plays an important role in ensuring a sustainable economy by providing independent and objective assurance of the organization's management, risk management and control processes. This article explores the importance of internal auditing in ensuring sustainability in organizations, focusing on its role in identifying and addressing environmental, social and governance (ESG) risks. By assessing risks, assessing compliance with regulations and standards, and recommending improvements to sustainability practices, internal audit helps organizations reduce risk, improve their reputation, and create long-term value. The article discusses the challenges and opportunities faced by internal audit in achieving sustainability goals, highlighting the need to collaborate with other functions and stakeholders to achieve significant impact. Overall, internal auditing is a key enabler of sustainable economic growth by promoting transparency, accountability and responsible business practices.

Freedom of Religion and Non-discrimination Based on Gender Identity and Sexual Orientation in Ukraine: Corporate Policy Commitments in Situations of Conflicting Social Expectations

Conflicting social expectations in a particular state affect the interpretation and implementation of international human rights law. Ideological, religious, and legal factors related to the protection of freedom of religion or belief (FoRB) and freedom from discrimination based on sexual orientation and gender identity (SOGI) in Ukraine put businesses under social pressure. Businesses thus face a legitimate dilemma whether to follow national social expectations perceiving FoRB and freedom from discrimination based on SOGI as rights in conflict or expectations arising from international human rights law establishing both freedoms as equal and non-clashing. Based on desk research and in-depth interviews with business policymakers the article identifies neutrality, ignoring, and active engagement strategies when providing corporate respect to FoRB and SOGI under the business and human rights framework ‘Protect, Respect, Remedy’ which requires responsible business conduct. The article concludes with the implications each strategy has for resolving presumed clashes between FoRB and SOGI at the community level.

The effect of company growth on sustainable performance: A moderating perspective of stock mispricing in Indonesia and Japan

The adoption of environmental, social, and governance (ESG) measures to realize socially responsible companies continues to accelerate, becoming a trend amid global uncertainty due to climate change and the COVID-19 pandemic. This study aims to examine the effect of company growth on sustainable performance, moderated by company stock mispricing in Indonesia and Japan, representing a developing and a developed country, respectively. This study uses panel data regression, namely the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM), to test hypotheses. With a total of 42 observations from companies listed on the Indonesia Stock Exchange (IDX) and 112 observations from companies listed on the Japan Stock Exchange (JPX) during 2019–2020, the results show that a company’s growth has a negative effect on sustainable performance in Indonesia, while in Japan it has no effect. Stock mispricing strengthens the negative effect of company growth on sustainable performance in Indonesia but has no effect in Japan. This study found that companies in Indonesia place more emphasis on internal growth than on ESG implementation compared to companies in Japan. The implication of this study is that the implementation of ESG shows different dynamics when comparing two countries. Indonesia needs to evaluate the regulations governing socially responsible businesses in order to encourage further improvement of ESG performance. Meanwhile, in Japan, ESG practices have been running voluntarily, so enforcement from regulators is relatively less necessary.

ESG Performance and Competitive Advantage Construction for the Development of Enterprise Transformation—A Case Study of Sany Heavy Industry Co., Ltd.

Against the backdrop of escalating global environmental and social challenges, enterprises are increasingly recognizing the pivotal role of Environmental, Social, and Governance (ESG) factors in their long-term competitive advantage. This paper employs a methodology combining literature review and case analysis to delve into how ESG performance acts as a catalyst for competitive advantage construction amid enterprise transformation, with a particular emphasis on the optimization of internal management and governance structures. The research reveals that by actively enhancing ESG performance, enterprises not only bolster their reputation and brand image but also steer themselves towards more sustainable and responsible business models. This shift is not merely a response to external environmental pressures but also a core driver of internal corporate transformation and upgrading. By integrating ESG strategies with their management practices, enterprises can cultivate distinctive competitive advantages, ultimately achieving enhanced sustainable development and overall competitiveness. The study provides theoretical and practical guidance for enterprises, aiding them in effectively integrating ESG factors into practice, thereby facilitating transformational development and competitiveness enhancement.

INTERNATIONAL ANTI-CORRUPTION STANDARDS IN THE PRIVATE SPHERE

The article examines the international legal basis for combating corruption of a universal and regional nature, which is recognized by standards and contains norms for preventing this offense in the private sphere. In particular, attention is paid to the provisions of the only universal international treaty - the UN Convention against Corruption (UNCAC), in which the norms for combating corruption in the private sector were established. It is noted that the provisions of the UNCAC became the basis for the development of a comprehensive response to the global problem. The provisions of the treaties (The Criminal Law Convention on Corruption (ETS 173), Additional Protocol to the Convention (ETS 191), Council of Europe Criminal Law Convention on Corruption (ETS 174)) and advisory norms adopted within the framework of the Council of Europe on countering corruption. It is emphasized that the approach of this organization to the fight against corruption has three interrelated aspects: development of pan-European norms and standards, monitoring of their compliance, as well as provision of technical assistance to states and regions. The focus is on the anti-corruption norms of the European Union (Treaty on the Functioning of the European Union, directives, sectoral norms, etc.) and the policy of the Union regarding the reform of existing legal prescriptions and relevant measures in this area. It is noted that a feature of EU acts is the emphasis on the role of the private sector as a partner in the fight against corruption. An analysis of the legal instruments of the Organization for Economic Cooperation and Development (OECD) on combating corruption, bribery and promoting integrity in the public and private sectors was carried out, and it was emphasized that the OECD is the main source of recommendations and guidelines in the field of business integrity. Practical materials, the purpose of which is to provide assistance to member states of the organization in implementing the provisions of treaty norms in the field of responsible business behavior of business entities, are also significant. Appropriate conclusions have been made.

The role of innovation and social media in explaining corporate social responsibility–business sustainability nexus in entrepreneurial SMEs

PurposeThe purpose of this study is to investigate the influence of Corporate Social Responsibility (CSR) on the sustainability of Central European SMEs by emphasizing the role of innovation as a mediator and social media as a moderator.Design/methodology/approachA questionnaire is developed, and primary data is collected from four Central European countries. Partial Least Squares Structural Equation Modelling is used to analyse data from over 1,500 SMEs operating in Visegrad countries.FindingsOur findings reveal a significant and positive association between CSR and business sustainability. Furthermore, it is identified that innovation serves as a mediator in the CSR–business sustainability link in two of the examined countries. Additionally, the moderating effect of social media is observed in Hungary, indicating that the impact of CSR and innovation on business sustainability varies by country context.Research limitations/implicationsWhile offering valuable insights, the study's generalizability to other regions necessitates further exploration. Additionally, the research focuses on specific mediating and moderating factors, leaving room for the investigation of other potential influences.Practical implicationsThis study emphasises the need to integrate CSR practices and promoting innovation to improve business sustainability for SMEs in Central Europe. Recognising social media's moderating influence may help firms adjust their CSR strategies to reflect the preferences and behaviours of their target consumers.Social implicationsPromoting CSR in SMEs can encourage social well-being, including community development and environmental sustainability.Originality/valueThis research contributes fresh insights into the interplay of CSR, innovation and social media within Central European SMEs. It underscores the importance of considering regional nuances when analysing these dynamics.

Integration of Islamic Law Regulation and Positive Law in Addressing Business Ethics Challenges in The Era of Industrial Revolution 4.0 and Society 5.0

The era of the Industrial Revolution 4.0 and Society 5.0 has brought significant changes in various aspects of life, including in the business world. The rapid development of technology and the integration of cyber-physical systems have changed the way businesses are conducted, giving rise to new and complex business ethics challenges. The normative juridical research method is employed in this study, which focuses on positive legal regulations related to legislation. Two approaches, the Statute Approach and the Conceptual Approach, are utilized. Primary and secondary legal sources are employed to understand and apply the law. Integrating Islamic Law and Positive Law regulations refers to the effort to combine their principles harmoniously. This integration involves identifying similarities and differences, considering contemporary aspects such as technology and globalization. Ethical challenges in business during the Fourth Industrial Revolution and Society 5.0 era include ensuring justice, sustainability, and humanity in business practices. Islamic and Positive Law regulations, such as usury and consumer protection prohibition, help guide ethical business behavior. Integrating Islamic and Positive Law regulations can address business ethics challenges. Collaboration among the government, society, and Islamic organizations is necessary to strengthen regulatory implementation. Education on Islamic values-based business ethics also needs to be reinforced to cultivate responsible business leaders for the future.

РИСК-ОРИЕНТИРОВАННОЕ ПРОАКТИВНОЕ УПРАВЛЕНИЕ ДЛЯ МАЛЫХ ФОРМ ПРЕДПРИНИМАТЕЛЬСТВА В АГРОБИЗНЕСЕ

The role of agribusiness in the period of economic transformations and the significant impact of crisis phenomena has increased. Small business is becoming attractive as the most flexible area in the agricultural economy of the country (RF). In a proactive vision of the problems of risks of small business organizations, attention is focused on the role of the concept of the threefold nature of the applica-tion for the formation of risk management policy. The triplicity of risk orientation implies taking into account the economic, social and environmental aspects of ag-ribusiness. The groupings of operational risks, social responsibility of business and environmental ones are given.

Assessing the Nexus between Social Responsibility, Environmental Initiatives, and Profitability: A Sustainable Finance Perspective of the Universal Banks in the Philippines

This study examines the impact of social responsibility and environmental projects on the profitability of 10 Universal Banks in the Philippines within the context of the Bangko Sentral ng Pilipinas (BSP) through sustainable finance framework. The research adopts a quantitative approach and analyzes data from 2019 to 2021 using exploratory data analysis and regression analysis was used to capture any evolving trends or shifts in the relationship between banks' engagement in these projects and their financial performance. The study found that the number of social responsibility and environmental projects undertaken by Universal Banks did not exhibit a statistically significant impact on their profitability during this period (2019-2021). However, the study emphasizes the broader value of these initiatives, as they contribute to sustainability, promote corporate social responsibility, and align with global trends towards a more environmentally conscious and socially responsible business landscape. The research suggests that banks should continue to invest in social and environmental projects for their substantial societal and ecological impacts, aligning with the evolving needs and expectations of customers, investors, and the broader community.

Corporate accountability for climate change and natural environment in Nigeria: Trends, limitations and future directions

One of the contemporary problems in the business and human rights debate is the obligations of business enterprises to reduce and redress the adverse effects of their operations on the environment. In Nigeria, despite the existence of various regulations and monitoring institutions, environmental pollution caused by the activities of business enterprises persists. The impact of climate change and environmental damage on sustainable development in Nigeria can no longer be ignored as our common future is becoming critically dependent on making the condition of the environment and human lives our top priorities. There is need for a stringent legal framework on business and human rights in Nigeria, accelerated implementation of the National Action plan on business and human right, a committed implementation of existing regulations on environmental protection, strict enforcement of laws and proper awareness that will ensure responsible business practices by business enterprises in all key sectors in Nigeria. This study examines the concept of corporate accountability in Nigeria. It identifies the inadequacies of existing national laws on corporate accountability for environmental protection, and proffer solutions to these gaps.

Responsible AI-Based Business Process Management and Improvement

Organizations today seek to improve and adapt their business processes because of an increasingly competitive economy. The use and application of Artificial Intelligence (AI) for business process improvement and management is often discussed and put in place, regardless of its potentially negative impact if AI is implemented in the wrong way, especially around the processing and storing of personal data. We discuss the use of AI for the management and improvement of business processes, especially in the financial domain, and how to ensure responsible AI use in enterprises for this aim. We propose an information system design for responsible and trustworthy business processes, and we envision that businesses will need strong and well-defined control points in their information systems for managing processes and creating associated audits to enforce their principles. We define questions and challenges that companies will need to reflect upon and follow to achieve an application of responsible AI in an enterprise context. We also outline considerations for AI and data protection regulation for companies, while also considering the technical challenges that would need to be solved.

Analysing impact of corporate attributes on sustainability disclosures through India’s new BRSR framework

Purpose The purpose of this study is to analyse the impact of corporate attributes like a company’s profitability, size, age, leverage and board size on companies’ sustainability reporting as measured through India’s new business responsibility and sustainability reporting (BRSR) framework. Design/methodology/approach A random sample of 130 companies was taken from the top 1,000 listed companies on the National Stock Exchange. Sequential mixed methods research approach was used to prepare a sustainability quality index. Then, a hierarchical multiple regression analysis was performed to examine the impact on the quality of reporting by Indian companies. Findings Interestingly, the analysis revealed that traditional metrics like age, profitability, board size and leverage did not have significant associations with reporting quality. Rather, the size of a company in terms of market capitalisation was found to have a strong positive impact on sustainability reporting. Research limitations/implications This was a cross-sectional study, as time series data for BRSR reporting is not yet available. Also, only five parameters were taken for analysis. Lastly, subjective judgment in content analysis may be involved. Practical implications This suggests that only larger companies in India are prioritising sustainability reporting over smaller ones. It affirms the legitimacy and stakeholder theory in the Indian context. Originality/value To the best of the authors’ knowledge, this study is one of the first endeavours to assess the efficacy of the new Indian BRSR framework and test its primary objectives. Furthermore, significant implications have been given for managers to catalyse and reinforce the sustainability momentum down the lane across companies of all sizes in India.

Environmental disclosure analysis of manufacturing companies to realize sustainable green economy

Purpose: Environmental sustainability is a critical issue for many countries, including Indonesia, whose economy is heavily reliant on natural resource extraction. Profitability, liquidity, capital structure, and environmental performance are investigated as potential factors of environmental disclosure in the Indonesian context.Design/methodology/approach: Data from a final sample of 235 observations of manufacturing industries were collected and analyzed using a partial least square-structural equation modeling (PLS-SEM).Findings: The findings reveal that profitability, liquidity, capital structure, and environmental performance all have a role in motivating corporations to disclose their environmental responsibilities. This is because environmental disclosure can be utilized to attract new potential investors. As a result, the higher the score for environmental performance, the greater the voluntary effect of environmental disclosure.Research limitations/implications: This research is not devoid of limitations. First, this study is limited to manufacturing firms in Indonesia. Second, this research only uses a single proxy of measurement. Thus, further research might utilize more sample firms from multiple countries or provide a comparative study between firms that adopt sustainability reporting. Hence, the implication might apply to sustainability reporting-adopted countries, and it might apply not only to emerging countries but also to developed countries. Further research is expected to use more measurements of environmental performance and environmental disclosure so that the result is more robust and has more impact. Moreover, utilizing alternative statistical methods can help validate the results of this study and reinforce the relevant theories.Practical implications: This research recommends that businesses should view environmental sustainability as a chance to make a positive impact on a more sustainable world for the "well-being of humans as well as the planet" while also improving their financial performance. Businesses that adopt socially and sustainably responsible business practices are likely to see improvements in their financial performance as well as increased credibility and confidence from important stakeholders.Social Implications: Eco-friendly products desired by consumers can be achieved through the combined influence of financial and environmental performance.Originality/value: The incorporation of an unbiased evaluation carried out by an external organization, together with the transparent distribution of outcomes utilizing a five-color rating scheme (PROPER), provides significant contributions to the current corpus of knowledge.