•  
  •  
 

Author ORCID Identifier

0000-0002-3773-5102

Article Classification

Sustainable Development

Abstract

A study on the viability of implementing sustainable reporting in Indonesian agricultural cooperatives is exceptionally uncommon, given the underlying concerns raised by the Financial Services Authority (OJK) Regulation No. 51/2017. In order to help achieve the Sustainable Development Goals, this project intends to investigate the potential of indicators of economic, ecological, and social sustainability. Employing the Analysis of Variance (ANOVA) method, this study analyzes the content of 85 sustainability reports using the Global Reporting Initiative (GRI) G4 reporting framework to determine the correlations between different sustainability categories and how they affect agribusiness and evaluate the impact on the business. The majority of agricultural firms exhibit a strong positive association between economic, environmental, and social performance measures, as demonstrated by the results and discussion. However, the environmental and human rights categories have a weak and marginal correlation in economic practices, employment, and decent work. These results suggest that improved economic performance can contribute to agribusiness's environmental and social performance. This study confirms the feasibility of implementing sustainable reporting in Indonesian agricultural cooperatives. This study emphasizes the necessity of a thorough and uniform reporting structure that successfully incorporates sustainability's social, environmental, and economic facets. The results provide valuable insights for Indonesian agricultural cooperatives who want to improve their sustainability practices and contribute to sustainable development. Cooperatives are encouraged to adopt sustainability reporting practices to improve transparency, accountability, and overall impact on economic, environmental, and social dimensions.

References

Bacon, C. M., Getz, C., Kraus, S., Montenegro, M., & Holland, K. (2012). The social dimensions of sustainability and change in diversified farming systems. Ecology and Society, 17(4). https://doi.org/10.5751/ES-05226-170441

Beniston, M. (1999). Global environmental change in mountain regions: An overview. Geographica Helvetica, 54(3), 120–124. https://doi.org/10.5194/gh-54-120-1999

Cahaya, F.R. & Hervina, R. (2019). Do human rights issues matter? An empirical analysis of Indonesian companies' reporting. Social Responsibility Journal. https://doi.org/10.1108/SRJ-10-2016-0171

Dayan, D. W. (2020). Peran sustainability reporting dalam pembangunan berkelanjutan. National Article Competition 2020.

De Micco, P., Rinaldi, L., Vitale, G., Cupertino, S., & Maraghini, M. P. (2020). The challenges of sustainability reporting and their management: the case of Estra. Meditari Accountancy Research, 29(3), 430–448. https://doi.org/10.1108/MEDAR-09-2019-0555

Financial Service Authority Regulation No. 51/POJK.03/2017 on the Implementation of Sustainable Finance for Financial Institutions, Issuers, and Public Companies, Otoritas Jasa Keuangan 1 (2017).

Francesconi, N., Wouterse, F., & Namuyiga, D. B. (2021). Agricultural cooperatives and covid‐19 in southeast Africa. The role of managerial capital for rural resilience. Sustainability (Switzerland), 13(3), 1–13. https://doi.org/10.3390/su13031046

Friedrich, N., Heyder, M., & Theuvsen, L. (2012). Sustainability management in agribusiness: challenges, concepts, responsibilities and performance. International Journal on Food System Dynamics, 3(2), 123–135. https://doi.org/10.18461/ijfsd.v3i2.323

Galor, Z., & Sofer, M. (2019). The reserve fund: Is it a necessary anchor for a successful cooperative? Journal of Cooperative Organization and Management, 7(2), 100089. https://doi.org/10.1016/j.jcom.2019.100089

Global Reporting Initiative. (2013). G4 Sustainability Reporting Guidelines: Reporting Principles and Standard Disclosures. In Gri G4.

Global Reporting Initiative. (2016). Gri 101: foundation 2016 101. In GSSB (Global Sustainability Standards Board. Goa State Biodiversity Board

Government Regulation of the Republic of Indonesia Number 07 of 2021 Concerning Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises, 1 (2021).

Gunawan, J., Permatasari, P., & Fauzi, H. (2022). The evolution of sustainability reporting practices in Indonesia. Journal of Cleaner Production, 358(131798). https://doi.org/10.1016/j.jclepro.2022.131798

Harymawan, I., Nasih, M., Agustia, D., Putra, F. K. G., & Djajadikerta, H. G. (2022). Investment efficiency and environmental, social, and governance reporting: Perspective from corporate integration management. Corporate Social Responsibility and Environmental Management, 29(5), 1186–1202. https://doi.org/https://doi.org/10.1002/csr.2263

Harymawan, I., Putra, F. K. G., Fianto, B. A., & Wan Ismail, W. A. (2021). Financially distressed firms: Environmental, social, and governance reporting in Indonesia. Sustainability (Switzerland), 13(18), 1–18. https://doi.org/10.3390/su131810156

Hill, J. (2020). Environmental, social, and governance (ESG) investing a balanced analysis of the theory and practice of a sustainable portfolioe. Academic Press

Klynveld Peat Marwick Goerdeler (KPMG) (2017). The KPMG survey of corporate responsibility reporting 2017 (Vol. 0, Issue 9783319212562). Springer. https://doi.org/10.1007/978-3-319-21257-9_7

Klynveld Peat Marwick Goerdeler (KPMG). (2021). Sustainability reporting in cooperatives. Risks, 9(6), 1–15. https://doi.org/10.3390/risks9060117

Krippendorff, K. (2019). Content analysis: An introduction to its methodology. SAGE Publications, Inc. https://doi.org/https://doi.org/10.4135/9781071878781

Luo, L., Qiao, D., Tang, J., Wan, A., Qiu, L., Liu, X., Liu, Y., & Fu, X. (2022). Training of farmers’ cooperatives, value perception and members’ willingness of green production. In Agriculture (Vol. 12, Issue 8). https://doi.org/10.3390/agriculture12081145

Marcis, J., Pinheiro de Lima, E., & Gouvêa da Costa, S. E. (2019). Model for assessing sustainability performance of agricultural cooperatives'. Journal of Cleaner Production, 234, 933–948. https://doi.org/10.1016/j.jclepro.2019.06.170

Ministry of Cooperatives and SMEs. (2022). Online data system of Indonesian Ministry of Cooperatives and SMEs.

Papoutsi, A., & Sodhi, M. M. S. (2020). Does disclosure in sustainability reports indicate actual sustainability performance? Journal of Cleaner Production, 260, 121049. https://doi.org/10.1016/j.jclepro.2020.121049

Petrescu, A.G., Bîlcan, F.R., Petrescu, M., Oncioiu, I.H., Türkes, M.C., & Căpuşneanu, S. (2020). Assessing the benefits of the sustainability reporting practices in the top Romanian companies. Sustainability (Switzerland), 12(8). https://doi.org/10.3390/SU12083470

Rahayu, N. I. (2020). Statistika Penelitian Keolahagaan. UPI Press

Raucci, D. & Tarquinio, L. (2020). Sustainability performance indicators and non-financial information reporting. Evidence from the Italia case. Administrative sciences, 10(1), 13. https://doi.org/10.3390/admsci10010013

Rwanda Transport Development Agency. (2019). ICA Annual Report 2021.

Steinhofel, E., Galeitzke, M., Kohl, H., & Orth, R. (2019). Sustainability reporting in German manufacturing SMEs. Procedia Manufacturing, 33, 610–617. https://doi.org/10.1016/j.promfg.2019.04.076

Tang, S., & Higgins, C. (2022). Do not forget the "how" along with the "what": improving the transparency of sustainability reports. California Management Review, 65(1), 44–63. https://doi.org/10.1177/00081256221094876

Tortia, E.C. (2021). Capital as common-pool resource: Horizon problem, financial sustainability and reserves in worker cooperatives. Journal of Cooperative Organization and Management, 9(2), 100137. https://doi.org/10.1016/j.jcom.2021.100137

Wahyuningrum, I. F. S., Budihardjo, M. A., Muhammad, F. I., Djajadikerta, H. G., & Trireksani, T. (2020). Do environmental and financial performances affect environmental disclosures? Evidence from listed companies in Indonesia. Entrepreneurship and Sustainability Issues, 8(2), 1047–1061. https://doi.org/10.9770/jesi.2020.8.2(63)

Wohlenberg, J., Hoeltz, M., Schaefer, J. L., Nara, E. O. B., Benitez, G. B., & Schneider, R. C. S. (2022). Sustainability in agriculture: analysing the environmental and social aspects of the family farmers' economy. Journal of Sustainability Science and Management, 17(8), 251–261. https://doi.org/10.46754/jssm.2022.08.015

Yadav, S. S. K., Abidi, N., & Bandyopadhayay, A. (2017). Development of the environmental sustainability indicator profile for ites industry. Procedia Computer Science, 122, 423–430. https://doi.org/10.1016/j.procs.2017.11.389

Yalin, L., Erli, D., Yiwei, G., Xiaohua, S., & Xiaoyan, L. (2019). Government-led sustainability reporting by China's HEIs. Journal of Cleaner Production, 230, 445–459. https://doi.org/10.1016/j.jclepro.2019.04.360

Zamlynskyi, V., Kryukova, I., Vlasenko, T., Slutskyi, E., Banar, O., & Anisimova, L. (2023). Corporate sustainability reporting and management of agricultural businesses in Ukraine. IOP Conference Series: Earth and Environmental Science, 1126(1), 012002. https://doi.org/10.1088/1755-1315/1126/1/012002

Download

Included in

Accounting Commons

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.