Navigating Sustainability Reporting Challenges in Pluralistic Societies: Insights from Balinese SMEs and the Integration of Tri Hita Karana and Tri Pramana

Abstract

In pluralistic societies, navigating diverse perspectives and promoting sustainable practices pose significant challenges. This paper explores the complexities of sustainability reporting within organizations, focusing on the transition towards more mature and integrated approaches. Through qualitative research, we delve into the institutionalization of sustainability reporting, integration of innovative accounting technologies, and strategies to address challenges encountered in the reporting process. Key findings highlight the hurdles faced by Sustainability Reporting Managers, including limited experience, low external readership, and perceived redundancy by senior management. Furthermore, managers often confront constraints imposed by CEO reporting strategies, balancing the inclusion of positive narratives while maintaining sincerity in Sustainability Reports. Drawing from Balinese SMEs' experiences, we introduce the concepts of Tri Hita Karana and Tri Pramana as guiding principles for sustainable development. Tri Hita Karana emphasizes harmonious relationships with the divine, natural world, and community, while Tri Pramana focuses on leveraging human abilities for innovation and growth. Integrating these concepts into business practices promotes economic prosperity, environmental stewardship, and social well-being. In conclusion, this paper advocates for a multi-faceted approach to sustainable development, combining education, collaboration, and policy advocacy. By embracing cultural and spiritual values, organizations can foster a culture of sustainability and responsible entrepreneurship for the benefit of present and future generations.