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Environmental Responsibility of Indonesian Manufacturing Companies

Author

Listed:
  • Nurul Choiriah*

    (Faculty of Economics, Universitas Negeri Semarang, Indonesia)

  • Heri Yanto

    (Faculty of Economics, Universitas Negeri Semarang, Indonesia)

  • Rifqi Ilhami

    (Faculty of Economics, Universitas Negeri Semarang, Indonesia)

Abstract

Manufacturing companies have responsibility to participate in reducing the environmental problems impacted by their operations. This study aims to identify the efforts of Indonesian manufacturing companies in abating environmental impacts caused by their production processesand to understand the behaviour of manufacturing companies in providing environmental information to their stakeholders. The population of this study are all manufacturing companies listed on the Indonesia Stock Exchange (IDX) and PROPER in 2012-2016. By employing purposive sampling, the study collected 135 data from 27 companies. On average, Indonesian manufacturing companies earned grade of 3 (Blue) in implementing PROPER. The extent of environmental disclosure is only around 38%. Environmental disclosure of manufacturing companies is influenced by rete of environmental performance and company size. Environmental performance is significantly affected by profitability and size. Leverage does not influence environmental performance, environmental disclosure, and profitability. The level of environmental disclosure is mostly descriptive and does not have a specific time frame. Indonesian manufacturing companies should improve their environmental performance and environmental disclosure.

Suggested Citation

  • Nurul Choiriah* & Heri Yanto & Rifqi Ilhami, 2018. "Environmental Responsibility of Indonesian Manufacturing Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 122-129:6.
    • Handle: RePEc:arp:tjssrr:2018:p:122-129
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    References listed on IDEAS

    as
    1. Hadrian Gery Djajadikerta & Terri Trireksani, 2012. "Corporate social and environmental disclosure by Indonesian listed companies on their corporate web sites," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(1), pages 21-36, May.
    2. Ravi Inder Singh Chandok & Sukhdev Singh, 2017. "Empirical study on determinants of environmental disclosure," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 32(4/5), pages 332-355, April.
    3. Malcolm Smith & Khadijah Yahya & Ahmad Marzuki Amiruddin, 2007. "Environmental disclosure and performance reporting in Malaysia," Asian Review of Accounting, Emerald Group Publishing Limited, vol. 15(2), pages 185-199, April.
    4. Dwi Kartikasari & Marisa Merianti, 2016. "The Effect of Leverage and Firm Size to Profitability of Public Manufacturing Companies in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 409-413.
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