MANAGEMENT OF ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) TO FULFILL STAKEHOLDER EXPECTATIONS IN COMPLIANCE WITH EXISTING LAWS AND REGULATIONS
Main Article Content
Abstract
Environmental degradation is a serious problem along with the growth and development of companies in every country. This article discusses how ESG practices require management to have the ability to make sustainable predictions to meet the expectations of many types of stakeholders in accordance with existing regulations. the research used is qualitative research using predecessor journals. ESG consists of Environmental, Social, and Governance. Environmental factors include the company's relationship with the physical environment, social factors relate to the social impact of a company on society, and governance factors relate to the way the company is managed. In addition, environmental, social, and governance (ESG) performance activities are interrelated with corporate activities. CSR and ESG are linked to corporate activities that can impact the interests of society and the environment, such as pollution, employee protection, or wise use of natural resources. Disclosure of ESG information at an aggregate level assists investors in comprehensively assessing a company's non-financial performance. These activities to fulfill stakeholders in ESG build on sound financial performance and the ability to manage stakeholder interests. Financial sustainability also demonstrates exemplary corporate governance practices that are positively appreciated by the market.
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
Afrizal, Safelia, N., & Muda, I. (2023). Determinants of carbon emission disclosure and sustainability reporting and their implications for investors’ reactions: The case of Indonesia and Malaysia. International Journal of Management and Sustainability, 12(2), 271–288. https://doi.org/10.18488/11.v12i2.3375
Amalia, R., & Kusuma, I. W. (2023). Pengaruh Kinerja Lingkungan, Sosial, Dan Tata Kelola Terhadap Kinerja Pasar Dengan Kontroversi Esg Sebagai Variabel Pemoderasi. ABIS: Accounting and Business Information Systems Journal, 11(2). https://doi.org/10.22146/abis.v11i2.84771
Amelia, & Cahyati, A. D. (2015). Pengaruh Kinerja Keuangan, Kinerja Lingkungan, Size, Dan Ukuran Dewan Komisaris Terhadap CSR Disclosure (Studi Empiris Pada PerusahaanPertambangan yang Terdaftar di Bursa Efek Indonesia Tahun 2010-2014). Jrak, 6(2), 64–79. https://media.neliti.com/media/publications/71862-ID-pengaruh-kinerja-keuangan-kinerja-lingku.pdf
Astuti, I. N., Mediyanti, S., Eliana, E., & Ridha, A. (2023). Menuju Sustainability: Apakah Lingkungan, Sosial dan Tata Kelola berdampak pada Kinerja Keuangan? Jurnal Akademi Akuntansi, 5(4), 579–594. https://doi.org/10.22219/jaa.v5i4.23017
B. Yoon, J. H. Lee, & R. B. (2018). Does ESG performance enhance firm value? Evidence from Korea. Sustainability, 10(10), 3635.
Lina Anatan, S.E., M. S. (2010). CORPORATE SOCIAL RESPONSIBILITY ( CSR ): Tinjauan Teoritis dan Praktik di Indonesia. Jurnal Manajemen Maranatha, 8, 1–11.
Liu, J., Loan, V. T. K., Mousa, S., Ali, A., & Cong, P. T. (2023). Sustainability and natural resources management in developed countries: The role of financial inclusion and human development. Resources Policy, 80, 103143. https://doi.org/10.1016/j.resourpol.2022.103143
Li, Z., Leong, L. W., Aldoseri, M. M. N., Abu-Rumman, A., & Al Shraah, A. (2023). Examining the role of sustainability and natural resources management in improving environmental quality: Evidence from Asian countries. Resources Policy, 80, 103136. https://doi.org/10.1016/j.resourpol.2022.103136
Lutfitasari, F., & Lutfillah, N. Q. (2019). Profitabilitas, Risiko Keuangan Dan Nilai Perusahaan, Dan Praktik Perataan Laba. Equity, 21(1), 71–80. https://doi.org/10.34209/equ.v21i1.632
Minggu, A. M., Aboladaka, J., & Neonufa, G. F. (2023). Environmental, Social dan Governance (ESG) dan Kinerja Keuangan Perusahaan Publik di Indonesia. Owner, 7(2), 1186–1195. https://doi.org/10.33395/owner.v7i2.1371
Nugroho, N. A., & Hersugondo Hersugondo. (2022). Analisis Pengaruh Environment, Social, Governance (ESG) Disclosure Terhadap Kinerja Keuangan Perusahaan. E-Bisnis : Jurnal Ilmiah Ekonomi Dan Bisnis, 15(2), 233–243. https://doi.org/10.51903/e-bisnis.v15i2.810
Rahmi, E. (2011). Standarisasi Lingkungan (ISO 26000) sebagai Harmonisasi Tanggung Jawab Sosial Perusahaan dan Instrumen Hukum di Indonesia. Jurnal Ilmu Hukum, ISO26000, 1–14.
Rokhlinasari, S. (2020). Teori – Teori dalam Pengungkapan Informasi Corporate Social Responbility Perbankan. 274–282.
Safriani, M. N., & Utomo, D. C. (2020). Pengaruh Environmental, Social, Governance (ESG) Disclosure terhadap Kinerja Perusahaan. Diponegoro Journal of Accounting, 9(3), 1–11. http://ejournal-s1.undip.ac.id/index.php/accounting
Siregar, P. A., Tambunan, R. P., Puspito, E., (2022). Sustainability Reporting In The Health Sector By Considering Economic, Environmental, Social And Governance (ESG) Aspects In The Kalbe Farma Pharmaceutical Industry. Journal of Pharmaceutical Negative Results, 6688-6695.
Wibowo, E. (2010). Implementasi Good Corporate Governance di Indonesia. Jurnal Ekonomi Dan Kewirausahaan, 10(2), 129–138.
Vasiljeva, M. V., Semin, A. N., Ponkratov, V. V., Kuznetsov, N. V., Kostyrin, E. V., Semenova, N. N., ... (2023). Impact of Corporate Social Responsibility on the Effectiveness of Companies' Business Activities. Emerging Science Journal, 7(3), 768-790. http://dx.doi.org/10.28991/ESJ-2023-07-03-08
Muda, I., Sidauruk, S.H., Siregar, H.S., Nurzaimah. (2018). The effect of corporate social responsibility on company’s value with common effects model (CEM), fixed effects model (FEM) and random effects model (REM) approaches (empirical evidence in Indonesia stock exchange). Quality Access to Success. 19(165). 79-90., M. V., Semin, A. N., Ponkratov, V. V., Kuznetsov, N. V., Kostyrin, E. V., Semenova, N. N., ... (2023). Impact of Corporate Social Responsibility on the Effectiveness of Companies' Business Activities. Emerging Science Journal, 7(3), 768-790. http://dx.doi.org/10.28991/ESJ-2023-07-03-08
Y. C. Chen, M. Hung, & Y. W. (2018). The effect of mandatory CSR disclosure on firm profitability and social externalities: Evidence from China. Journal of Accounting and Economics, 65(1), 169–190.
Ze, F., Yu, W., Ali, A., Hishan, S. S., & Khudoykulov, K. (2023). Influence of natural resources, ICT, and financial globalization on economic growth: Evidence from G10 countries. Resources Policy, 81, 103254. https://doi.org/10.1016/j.resourpol.2022.103254
Z. Zuraida, N. Houqe, & T. V. Z. (2016). Value Relevance of Environmental, Social and Governance Disclosure. Journal of International Accounting Research (JIAR), 2(4).