Professional Documents
Culture Documents
Seminar SR
Seminar SR
Composed by :
Faculty Of Economy
Major Of Accounting
Sriwijaya University
2019
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Table of Content
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CHAPTER I
INTRODUCTION
1.1. Background
Business concepts in management of the company now has a change
viewpoint. Company management in managing the company no only required to
give prosperity to shareholders company only, but expected also provide benefits
to stakeholders who are on outside the company. Business concept long ago
confirmed that the company established for profit as much as possible. In this
concept then the company is only concerned the interests of management and
shareholders without paying attention the interests of the parties who are at outside
the company. Business concept only then emerges with a perspective that states that
company management must manage the company with pay attention to stakeholder
interests company interests, fine internal stakeholders company and stakeholders
interests of external companies.
In line with the development of time, understanding the meaning and
benefits of business value in business concepts shift from a single P namely profit
to 3P (TripleBottom Line). The Triple Bottom Line, initiated by Elkington (1997),
formulates three main factors in the company's operations, namely economic
factors and profits, human and society factors (people), and environmental factors
(planet). These three factors are related to each other.
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Society depends on the economy; the economy and corporate profits depend
on society and the environment, even the global ecosystem. These three
components are dynamic, and cannot be separated from social, economic and
environmental conditions and pressures, as well as possible conflicts of interest.
This approach is to improve decision making about policies and programs in a better
direction by considering economic, environmental and society aspects at the same
time. Company performance that reflects the three main factors in this 3P concept
can be demonstrated in Sustainability Reporting (SR). This report is a tool for
stakeholders to assess the extent to which companies address sustainability issues
such as savings and energy conservation, water management, waste management,
overcoming air pollution and social issues such as company participation in
improving the quality of life of local communities. SR is a real manifestation of
sustainability accounting carried out by the company to the public. The publication
of this report is a potential legitimacy for companies that care about the environment
or society. This means that the society obtains adequate information and legitimizes
the existence of the company in the midst of the society.
Increased corporate awareness of social responsibility shows the importance
of annual reports as a medium for disclosure of Corporate Social Responsibility
(CSR) practices (Kusumawardani, Setiawati, & Ginting, 2017). This increased
awareness is evident from the increasing number of companies in Indonesia that
publish Sustainability Report from year to year, as data obtained from Global
Reporting Initiatives (GRI), as of February 2015 there were as many as 63
companies that had made and published their reports
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Picture 2. Trend Sustainability Report (Source: GRI)
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CHAPTER II
DISCUSSION
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in realizing sustainable development through economic, environmental and social
aspects.
Table 1. Ranking list – Asia Sustainability Reporting (SR) Award 2018
Award Indonesia Companies Rank
Platinum PT Vale Indonesia Tbk 1
PT Perusahaan Gas Negara Tbk 2
PT Pupuk Kalimantan Timur 3
PT Pupuk Indonesia (Persero) 4
PT Pertamina Hulu Energi ONWJ (PHE ONWJ) 5
PT Wijaya Karya (Persero) Tbk 6
PT ANTAM Tbk 7
Gold Star Energy Geothermal Wayang Windu Ltd 1
PT Indo Tambangraya Megah Tbk 2
PT Indocement Tunggal Prakarsa Tbk 3
PT Indonesia Power 4
PT Bio Farma (Persero) 5
PT Perkebunan Nusantara XI 6
PT Kaltim Prima Coal 7
PT Pertamina EP Asset 4 Poleng Field 8
PT Austindo Nusantara Jaya Tbk. 9
PT Garuda Indonesia (Persero) Tbk 10
Lembaga Pengembangan Masyarakat Amungme dan 11
Kamoro (LPMAK)
PT Bumi Resources Tbk. 12
PT Agincourt Resources 13
Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu 14
Minyak Dan Gas Bumi (SKK MIGAS)
PT Bank Maybank Indonesia Tbk 15
PT Pertamina (Persero) 16
PT Bank Pembangunan Daerah Sumatera Selatan Dan 17
Bangka Belitung
PT Bank Bukopin, Tbk 18
PT Bank CIMB Niaga 19
PT TIMAH Tbk 20
PT United Tractors Tbk 21
Silver PT PELNI (Persero) 1
PT ABM Investama Tbk. 2
PT Reswara Minergi Hartama 3
PT Bank Rakyat Indonesia (Persero), Tbk. 4
Bronze PT Sarana Multi Infrastruktur (Persero) 1
Asia Pulp & Paper 2
PT Bank Pembangunan Daerah Jawa Timur Tbk 3
PT Pupuk Kujang 4
BPJS Ketenagakerjaan 5
PT Bank Pembangunan Daerah Jawa Barat dan Banten, 6
Tbk.
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2.2. Benefits of Sustainability Reporting
The benefits obtained from sustainability reporting according to the World
Business Council for Sustainable Development include:
1. Sustainability Reporting provide information to stakeholders (shareholders,
members of the local society and government) and improve company
prospects, and help realize transparency;
2. Sustainability Reporting can help build a reputation as a tool that contributes
to increasing brand value, market share and long-term consumer loyalty;
3. Sustainability Reporting can be a reflection of how the company manages
the risks;
4. Sustainability Reporting can be used as a stimulation of leadership thinking
and performance that is supported by the spirit of competition;
5. Sustainability Reporting can develop and facilitate the implementation of a
management system that is better in managing environmental, economic
and social impacts;
6. Sustainability Reporting tends to reflect directly the ability and readiness of
the company to fulfill the long-term wishes of shareholders;
7. Sustainability Reporting help build shareholder interest with a long-term
vision and help demonstrate how to increase corporate value related to
social and environmental issues.
An effective sustainability reporting cycle, which includes a regular
program of data collection, communication, and responses, should benefit all
reporting organizations, both internally and externally.
Table 2. Internal and External Benefits of Sustainability Reporting
Internal Benefits External Benefits
Increased understanding of risks and Mitigating – or reversing – negative
opportunities environmental, social and governance
impacts
Emphasizing the link between financial Improving reputation and brand loyalty
and non-financial performance
Influencing long term management Enabling external stakeholders to
strategy and policy, and business plans understand the organization’s true
value, and tangible and intangible
assets
Streamlining processes, reducing costs Demonstrating how the organization
and improving efficiency influences, and is influenced by,
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expectations about sustainable
development
Benchmarking and assessing
sustainability performance with respect
to laws, norms, codes, performance
standards, and voluntary initiatives
Avoiding being implicated in
publicized environmental, social and
governance failures
Comparing performance internally,
and between organizations and sectors
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and comprehensively so that ultimately stakeholders can assess the company's
performance more fully.
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performance includes training and empowerment of employees, freedom of
association for employees, and guarantee of employee rights. Disclosure of
environmental performance includes waste management, energy efficiency in
company activities, and reduction of carbon emissions.
This understanding will lead us to assess that the CSRS profession is very
important. The CSRS profession must be able to become the main "actor" who will
connect the interests of the company with the interests of all company stakeholders.
The CSRS profession must be able to translate items contained in the GRI G4
guideline to be implemented in accordance with the real conditions in the company.
The fact that happens is that most companies in Indonesia have not been able to
fulfill all the items contained in the GRI G4.
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reports are prepared by someone who has passed a Certified Sustainability
Reporting Specialist (CSRS) certification. The CSRS profession is a profession
whose task is to compile a company's sustainability report. The CSRS profession
plays an important role in translating the actual condition of the company into a
company sustainability report. Someone who has passed the CSRS certification
have sufficient ability to compile a sustainability report and be able to account for
the information presented in the company's sustainability report. CSRS profession
must be able to understand the guidelines or guidelines in preparing a sustainability
report then translate the company's actual conditions into a sustainability report.
The role of the CSRS profession in the preparation of sustainability reports can be
interpreted as a form of application of enterprise theory in the business world .
Kurniawan (2017) stated that enterprise theory is a new paradigm in which
company management views the interests of parties outside the company. The form
of company management's attention to stakeholders outside the company is by
compiling a company sustainability report. In a sustainability report you will see
how the balance between economic performance, social performance, and
environmental performance of the company.
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company management is said to have carried out business concepts that are
responsible for running the company (Astini et al., 2017).
The CSRS profession is in charge of preparing data, information,
determining materiality, and establishing relationships with corporate stakeholders
to prepare a reliable sustainability report that can be used by corporate stakeholders
in making a decision, be it economic decisions or investment decisions, social
decisions and environmental decisions (Kurniawan, 2017). The CSRS profession
and sustainability report is an answer to the current business paradigm where
companies should be able to provide benefits to all corporate stakeholders
(enterprise theory). This paradigm abandons the past paradigm where in the past
the company's main goal was established for the prosperity of management and
shareholders of the company. The CSRS profession and sustainability report are the
first steps for businesses that can provide social benefits to all levels of society and
ultimately can achieve social welfare. The main objective of sustainability reporting
is sustainable economics.
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CHAPTER III
CONCLUSION
The change in the corporate reporting paradigm has made all parties aware
that comprehensive information delivery is important in the current context of
sustainable reporting that results in a sustainability report that is important for
linking the interests of company management with corporate stakeholders. When a
continuous report is important, then at that time the CSRS profession becomes an
inseparable element in the information linking chain of company management to
corporate stakeholders. The CSRS profession plays an important role in translating
the actual condition of the company into a company sustainability report. Someone
who has passed the CSRS certification is said to have sufficient ability to compile
a sustainability report and be able to account for the information presented in the
company's sustainability report. The CSRS profession is in charge of preparing
data, information, determining materiality, and establishing relationships with
corporate stakeholders to prepare a reliable sustainability report that can be used by
corporate stakeholders in making a decision, be it economic decisions or investment
decisions, social decisions and environmental decisions. The CSRS profession and
sustainability report is an answer to the current business paradigm where companies
should be able to provide benefits to all corporate stakeholders.
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REFERENCES
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