E-Business Disclosure for Sustainability on Selected Listed Companies in Indonesia's Stock Exchange Market

E-Business Disclosure for Sustainability on Selected Listed Companies in Indonesia's Stock Exchange Market

Vincent Didiek Wiet Aryanto
Copyright: © 2014 |Pages: 8
DOI: 10.4018/ijide.2014070103
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Abstract

To date, most listed corporations in Indonesia's Stock Exchange Market (BEI) disclose information on e-business sustainability concerning their environmental performance in response to stakeholder demand for environmental responsibility and accountability. How was e-business sustainability performed by some corporations on their websites? This article investigates the environmental management and business sustainability practices of the publicly listed companies in Indonesia as informed to the public by their websites. Based on a content analysis of the e-business sustainability reports, this article analyzes the content of corporate environmental and e-business sustainability disclosures with respect to the following areas: company compliance and company non-compliance to the sets of environment regulations and policies implied in the PROPER program.
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Introduction

The internet technology has been enabling the listed firms to disclose their company’s information instantly to the world users. The extent of using such media has augmented nowadays (Sriram & Laksmana, 2006). Websites are a means for companies deliver positive images of themselves, in order to attain an expressive desired identity; Websites are open spaces accessed by all stakeholders, something that compelled companies to incorporate their corporate social responsibilities, business sustainability and environment practices. Being open and easily accessed, Websites also influence force companies to take a stance concerning various external events as a response to stakeholder’s expectations (Costa & Cunha, 2008).

The majority of the companies today deliberate environment and sustainable business as important strategic planning consideration as evidenced by the fact that 60% of the world’s largest companies have environmental policies and 41% of the companies disclose the need for environmental management system which help to institutionalize policies by transforming them into actions. There is some evidence that there is a mindset shift taking place regarding the strategic drivers and philosophical foundations of corporate environmental management practices. Corporate disclosures indicate that companies instead of driven mainly by laws and regulations, are driven by non-legal factors based on competitive advantage reasons rather than on compliance reasons (Jose & Lee, 2007).

A review of the many definitions in use indicates three general concepts: “natural resources are finite and there are limits to the carrying capacity of the Earth’s ecosystems; economic, environmental, and social goals must be carried out within these limits; and there is a need for inter- and intra-generational equity” (Farrell & Hart 1998, p. 12).

The purposes of this work business and environmental sustainability is defined in this article as stakeholder behavior influencing on the natural environment that meets the needs of the present without compromising the ability of future stakeholders to attain their own needs. Two of the common concepts in definitions, confines on goals and equity within and across generations, are addressed explicitly and the third, limitations in the capacity to utilize nature, is implicit within meeting the needs of all stakeholders. This definition emphasized the attention of stakeholders identified in this work as recognizing the need for action but who are indeterminate about what it all means and how to ensue. One conceptualization of business and environmental sustainability described above is as an essential requirement for social and economic development since the environment restrict the use of renewable and nonrenewable resources in the production of goods and services In this conceptualization, the environment also constrains integration of pollution and waste on the consumption side (Elliot, 2011).

Based on this model, production and consumption cannot proceed unless environmental issues are resolved. Although subject to regulatory and other motivations for changed behavior, this model accentuates the balance necessary for a sustainable world. Overwhelming evidence of environmental degradation due to human activity has been admitted at the international level (e.g., by the 192 nations ratifying the United Nations Framework Convention on Climate Change). If environmental balance is a prerequisite for economic and social development, then preventive and recuperative actions are required with immediate effect in order to achieve a sustainable state. Scientific evidence endorsed by the Inter-governmental Panel on Climate Change (IPCC, 2007) agreements.

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