The Fallacy Of Assuming Equality: Evidence Showing Vastly Different Weighting Of The Global Reporting Initiatives Key Items

Suhardjanto, Djoko; Tower, Greg; Brown, Alistair

doi:10.19030/iber.v7i8.3280

Cited by 3 publications

(9 citation statements)

References 24 publications

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“…Prior CSR reporting studies in Indonesia suggest that these guidelines are appropriate to be used in an Indonesian context (see for example Suhardjanto, Tower and Brown, 2008a;Suhardjanto, Tower and Brown, 2008b). Research has indicated that as there are no clearly detailed CSR guidelines from the Indonesian government or from the Indonesian Institute of Accountants (IAI), that a number of Indonesian companies adopt the GRI guidelines (Lako, 2011;Jalal, 2012).…”

Section: Methodsmentioning

confidence: 99%

The Indonesian Government’s coercive pressure on labour disclosures

Cahaya

Porter

Tower

et al. 2015

Sustainability Accounting, Management and Policy Journal

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Purpose-This study focuses on corporate social responsibility and workplace wellbeing by examining Indonesian Stock Exchange (IDX) listed companies' labour disclosures. Design/methodology/approach-Year-ending 2007 and 2010 annual report disclosures of 31 IDX listed companies are analyzed. The widely acknowledged Global Reporting Initiative (GRI) guidelines are used as the disclosure index checklist. Findings-The results reveal that the overall labour disclosure level increases from 21.84% in 2007 to 30.52% in 2010. The levels of four of the five specific labour disclosures also increase with Employment being the exception. The results further show that the Indonesian government does not influence the increase in the levels of the overall labour disclosure or the four categories showing increased disclosure but, surprisingly, does significantly affect the decrease in the level of the Employment category. Research limitations/implications-It is implied that the government is at best ambiguous given that, on one side, the government regulates all corporate social responsibility (CSR) activities and reporting but appears to coercively pressure companies to hide Employment specific issues. Practical implications-It is implied that Indonesian companies need to have 'strong and influential' independent commissioners on the boards to counter any possible pressures from the government resulting in lower disclosure levels. Originality/value-This paper provides insights into the 'journey' of labour-related CSR disclosure practices in Indonesia and contributes to the literature by testing one specific variant of isomorphic institutional theory namely coercive isomorphism.

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Section: Methodsmentioning

confidence: 99%

The Indonesian Government’s coercive pressure on labour disclosures

Cahaya

Porter

Tower

et al. 2015

Sustainability Accounting, Management and Policy Journal

Self Cite

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“…Measurement of environmental disclosure in this study is using the Indonesian environmental disclosure index (IER) developed by [19]. This study analyzes the overall press coverage of Indonesia adopting 35 GRI items, these GRI items are financially or non-financially oriented and the conformity of the assumptions of the same weight inherent in the GRI list.…”

Section: Environmental Disclosurementioning

confidence: 99%

“…Research conducted by [19] analyzed more than 2000 local, regional and national coverage articles from environmental reporting items to measure press coverage priorities as a weighting mechanism for the benefit of various environmental issues. The results show a very diverse range of 35 Global Reporting Initiative (GRI) items.…”

Section: Environmental Disclosurementioning

confidence: 99%

“…According to [19], GRI environmental items indicate that there are large differences in rankings regarding Indonesia's environmental problems. The impact of water use, incidents and fines and protection programs are very important environmental goods according to Indonesian press coverage.…”

Section: Environmental Disclosurementioning

confidence: 99%

“…Evidence shows that the Indonesian press is paying more attention to domestic environmental issues. The use of [19] IER index will be more appropriate for measuring environmental disclosure in Indonesia. The following Indonesian Environmental Reporting Index (IER) index is used in this study:…”

Section: Environmental Disclosurementioning

confidence: 99%

See 2 more Smart Citations

Determinants of Environmental Disclosure in Indonesia

Verawaty¹,

Merina²,

Jaya³

et al. 2020

Proceedings of the 3rd Global Conference on Business, Management, and Entrepreneurship (GCBME 2018)

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Environmental disclosure is the disclosure of information relating to the environment in the company's annual report. This disclosure aim is as a medium among companies, communities and investors that can be used as economic, social and political decision making. Industry type, company size, profitability, liquidity, environmental management systems, taxes, market share, and media coverage were considered to have influences on environmental disclosure. The study used quantitative analysis techniques with multivariate regression. The object of this research was the mining sector. The results showed that media coverage had a positive effect on environmental disclosure. This is because media coverage is a key communication function and is very important for management in CSR disclosure. In fact, communicating CSR through the media will enhance the company's reputation in the eyes of the public. The results of this study also indicated that environmental disclosure by companies in Indonesia was still relatively low. Therefore, companies need to increase their environmental disclosure in the annual report or sustainability report. Environmental disclosure is important for the company because it ensures transparency and accountability for the performance and long-term sustainability of the company.

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Coercive media pressures on Indonesian companies' labour communication

Cahaya

Porter

Tower

2016

IJCA

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This study examines links between media pressures and Indonesian Stock Exchange (IDX) listed companies' Labour Practices and Decent Work Disclosures (LPDWD). The results show that there are 95 labour-related articles found in Kompas from 1 July 2006 to 30 June 2007. The level of annual report disclosures in 2007 ranges from just under 1% to 100% of companies communicating labour-related information. Correlation analysis reveals that the link between media exposure and firms' communication is significant and positive. The most apparent effect of media is on employee benefit issues. This finding supports the premise of coercive isomorphism. There are, however, major differences between individual LPDWD media exposure items and company reporting. The media intensively highlights injury rates and contract employment issues whereas Indonesian companies focus their labour disclosures more on training and employee diversity information. This implies that companies in this developing nation window-dress their annual reports to avoid communicating controversial issues especially where they do not perform well. Despite media exposure, it is the government that has greater influence on companies' labour disclosures, pushing companies to continue adopting certain practices and disclose particular issues which contribute to strengthening the Indonesian economy.

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The Fallacy Of Assuming Equality: Evidence Showing Vastly Different Weighting Of The Global Reporting Initiatives Key Items

Cited by 3 publications

References 24 publications

The Indonesian Government’s coercive pressure on labour disclosures

The Indonesian Government’s coercive pressure on labour disclosures

Determinants of Environmental Disclosure in Indonesia

Coercive media pressures on Indonesian companies' labour communication

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