Initiating Environmental Behavior in Manufacturing Plants in Indonesia

Rock, Michael T.; Aden, Jean

doi:10.1177/107049659900800402

Cited by 9 publications

(4 citation statements)

References 6 publications

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“…Studies on environment issues in the Indonesia context are more concerned with the effectiveness of forest management certification programs to improve environmental, social, and economic performance over existing management practices (Miteva et al , 2015) and the effectiveness of environmental impact assessment regarding the protection of the marine environment from industrial pollution (Syafiq, 2015). Moreover, Rock and Aden (1999) investigated the influence of plant characteristics, regulatory actions, community and market pressures, and government incentives on plant investment in pollution control. In regard to environmental issues and firm performance, Rokhmawati et al (2015) found that CO2e intensity and social reporting scores have a positive and significant effect on firm performance (ROA).…”

Section: Introductionmentioning

confidence: 99%

Determinants and consequences of environmental investment: an empirical study of Indonesian firms

Chariri

Nasir

Januarti

et al. 2019

JABS

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Purpose This study aims to examine the effect of institutional ownership, audit committee and types of industry on environmental investment. Furthermore, this research investigates the consequences of environmental investments on firm financial performance. Design/methodology/approach The sample consisted of 145 companies listed on the Indonesia Stock Exchanges and receiving PROPER awards issued by the Ministry of Environment, Republic of Indonesia in the year 2009-2015. The data were then analyzed using ordinal logistic regression and multiple regression. Findings The findings showed that environmental investment was significantly affected by types of industry. However, institutional ownership and audit committee did not influence environmental investment. Finally, the finding indicated that environmental investments positively affected firm financial performance. Research limitations/implications This research only covered companies listed on the Indonesia Stock Exchanges and receiving PROPER awards. Thus, the findings cannot be generalized for all companies in Indonesia and other markets. Originality/value This study is the first effort intended to investigate the determinants and consequences of environmental investment which have been ignored by previous studies, especially in the Asian emerging markets. This study at least provides us with two main contributions. First, the findings on determinants of environmental investment can be used by governments in Asian countries, especially Indonesia as a reference in making policies concerning the obligations of companies to the environmental problems. Second, the finding on the relationship of environmental investment and financial performance can be used by companies as strategies to generate profits without destroying the environment.

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Section: Introductionmentioning

confidence: 99%

Determinants and consequences of environmental investment: an empirical study of Indonesian firms

Chariri

Nasir

Januarti

et al. 2019

JABS

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“…That monitoring and enforcement are important for the success of the Clean River Program not only follows from the record of West Java in this respect, as mentioned above, but was also emphasized by a study by Rock and Aden (1999) on the performance and outcomes of this program in Semarang. These authors noted a strong correlation between enforcement actions and investment in pollution abatement equipment.…”

Section: Decentralization's Impact On Water Pollution Control 24mentioning

confidence: 85%

“…However, gradually the program has changed to a more mandatory format and provided the provinces an increasingly serious role in monitoring and enforcement. It should be noted, though, that monitoring of effluent was much more difficult for the provincial authorities than for the Department of Industries, as the latter did have access to the factories, whereas the former could only monitor their performance by taking samples of river water (Rock and Aden 1999).…”

Section: Decentralization's Impact On Water Pollution Control24mentioning

confidence: 99%

Consequences of Decentralization: Environmental Impact Assessment and Water Pollution Control in Indonesia

Bedner

2009

Law &Amp; Policy

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After having been one of the most centralized states in the world for more than thirty years, in 2001 Indonesia introduced a sweeping program of decentralization with important consequences for the management of the industrial sector. This article explores whether the decentralization process has led to substantial changes in Environmental Impact Assessment (EIA) and enforcement of water pollution law. Its main findings are that the general division of authority in both fields has become less fragmented and that differences between districts have increased, but, in practice, not so much has changed as one would have expected. For EIA, “horizontal” disputes between sectoral agencies have been supplanted by “vertical” disputes between different levels of government. Monitoring and sanctioning of industrial water pollution have mainly continued within the scheme of the provincial program started under Soeharto's centralized regime, with still few initiatives at the district level. If any, such initiatives are usually driven by public complaints. On the other hand, there are indications that in the longer run the institutional changes may have more significant effects on EIA and enforcement practice. For EIA, these seem to be negative; for enforcement of water pollution regulation this depends much on the situation within a district or a province.

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“…In a survey of 92 textile and petrochemical plants in Korea, Rock & Aden (1999) looked at the determinants of plant-level pollution abatement expenditures. They found that employment, plant-level sales, foreign ownership, an index of government sanctions and community pressure all had significant and positive effects on abatement expenditures.…”

Section: Firm Characteristics and Environmental Management And Performentioning

confidence: 99%

The firm, environmental management and environmental measures: Lessons from a survey of European manufacturing firms

Johnstone

Scapecchi

Ytterhus

et al. 2004

Journal of Environmental Planning and Management

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This paper reports on the results of a survey of environmental management and technical measures amongst almost 2000 European firms. Logit analysis is undertaken to determine the effects of firm characteristics, commercial conditions, perceived environmental impacts, expected benefits and stakeholder pressures on the probability of having an environmental management system in place. Subsequently, determinants of the likelihood of undertaking environmental actions in five environmental areas are estimated. There is a positive effect of environmental management on the likelihood of undertaking technical measures to reduce environmental impacts in some (but not all) areas, as well as a positive role for integrated environmental management strategies.

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Initiating Environmental Behavior in Manufacturing Plants in Indonesia

Cited by 9 publications

References 6 publications

Determinants and consequences of environmental investment: an empirical study of Indonesian firms

Determinants and consequences of environmental investment: an empirical study of Indonesian firms

Consequences of Decentralization: Environmental Impact Assessment and Water Pollution Control in Indonesia

The firm, environmental management and environmental measures: Lessons from a survey of European manufacturing firms

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