How is using of the Indonesian Banking Environmental Disclosure with GRI?

Rizky Windar Amelia, Aditya Pandu Wicaksana, Desi Zulvina, Syska Lady Sulistyowatie

Abstract


This study aims to determine how the differences in environmental disclosure in conventional banking with Islamic banking using the GRI index. This study found that conventional banking has a higher environmental disclosure than Islamic banking. In addition, the results of this study state that the disclosure of the Islamic banking environment is more representative when using the ISR index when compared to the GRI index. The data used are in the form of annual reports and sustainability reporting of conventional banking companies and Islamic banking listed on the Indonesia Stock Exchange in 2019. The data analysis technique used in this study is content analysis and statistical tests to confirm the results.

 

Keywords: environmental disclosure, GRI index, ISR index, Indonesian Banking


Full Text:

PDF

References


Ageron, B., Gunasekaran, A., & Spalanzani, A. (2012). Sustainable supply management: An empirical study. International Journal of Production Economics, 140(1), 168–182. https://doi.org/10.1016/j.ijpe.2011.04.007

Al-Tuwaijri, S. A., Christensen, T. E., & Hughes, K. E. (2005). The Relations Among Environmental Disclosure, Environmental Performance, and Economic Performance: A Simultaneous Equations Approach. SSRN Electronic Journal, August. https://doi.org/10.2139/ssrn.405643

Alam, M. M., Akbar, C. S., Shahriar, S. M., & Elahi, M. M. (2017). The Islamic Shariah principles for investment in stock market. Qualitative Research in Financial Markets, 9(2), 132–146. https://doi.org/10.1108/QRFM-09-2016-0029

Ane, P. (2012). An Assessment of the Quality of Environmental Information Disclosure of Corporation in China. Systems Engineering Procedia, 5, 420–426. https://doi.org/10.1016/j.sepro.2012.04.064

Argandoña, A. (1998). The Stakeholder Theory and the Common Good Society and sociability. Journal of Business Ethics, 80(4), 879–888.

Baboukardos, D. (2018). The valuation relevance of environmental performance revisited: The moderating role of environmental provisions. British Accounting Review, 50(1), 32–47. https://doi.org/10.1016/j.bar.2017.09.002

Bai, Y., Faure, M., & Liu, J. (2013). The role of china’s banking sector in providing green finance. Duke Environmental Law and Policy Forum, 24(1), 89–140.

Belal, A. R., Abdelsalam, O., & Nizamee, S. S. (2015). Ethical Reporting in Islami Bank Bangladesh Limited (1983–2010). Journal of Business Ethics, 129(4), 769–784. https://doi.org/10.1007/s10551-014-2133-8

Belkaoui, A. (1980). The impact of socio-economic accounting statements on the investment decision: An empirical study. Accounting, Organizations and Society, 5(3), 263–283. https://doi.org/10.1016/0361-3682(80)90001-X

Berthelot, S., & Robert, A.-M. (2011). Climate Change Disclosures: An Examination of Canadian Oil and Gas Firms. Issues In Social And Environmental Accounting, 5(2), 106. https://doi.org/10.22164/isea.v5i2.61

Branco, M. C., & Rodrigues, L. L. (2006). Communication of corporate social responsibility by Portuguese banks: A legitimacy theory perspective. Corporate Communications, 11(3), 232–248. https://doi.org/10.1108/13563280610680821

Bryson, D., Atwal, G., & Dave, K. (2016). Antecedents of Intention to Use Green Banking. 567, 551–567. https://doi.org/10.1002/jsc

Clarkson, P. M., Li, Y., Richardson, G. D., & Vasvari, F. P. (2008). Revisiting the relation between environmental performance and environmental disclosure: An empirical analysis. Accounting, Organizations and Society, 33(4–5), 303–327. https://doi.org/10.1016/j.aos.2007.05.003

Dong, S., Xu, L., & McIver, R. (2020). China’s financial sector sustainability and “green finance” disclosures. Sustainability Accounting, Management and Policy Journal. https://doi.org/10.1108/SAMPJ-10-2018-0273

Economics, G. (2016). Corporate sustainability reporting in the banking sector of Bangladesh : an appraisal of the G4 of the Global Reporting Initiative Md . Nazrul Islam and Mohammad Ashraful Ferdous Chowdhury *. 10, 252–278.

Elasrag, H. (2015). Corporate Social Responsibility in Islam. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2593945

Fernando, P. M. P., & Fernando, K. S. D. (2017). Selected Papers from the Asia-Pacific Conference on Economics & Finance (APEF 2016). Selected

Papers from the Asia-Pacific Conference on Economics & Finance (APEF 2016), Apef 2016. https://doi.org/10.1007/978-981-10-3566-1

Financial Services Authority Regulation Number: 51 / POJK.03 /2017 About The Implementation of Sustainable Finance for Financial Service Institutions, Issuers, and Public Companies.

Freeman, R. E. E., & McVea, J. (2005). A Stakeholder Approach to Strategic Management. SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.263511

Freeman, R. E., Kujala, J., Sachs, S., & Stutz, C. (2017). Stakeholder Engagement: Practicing the Ideas of Stakeholder Theory. 1–12. https://doi.org/10.1007/978-3-319-62785-4_1

Friedman, A. L., & Miles, S. (2002). Developing stakeholder theory. Journal of Management Studies, 39(1), 1–21. https://doi.org/10.1111/1467-6486.00280

Gray, R., & Bebbington, J. (2000). Environmental accounting, managerialism and sustainability: Is the planet safe in the hands of business and accounting? Advances in Environmental Accounting and Management, 1(December), 1–44. https://doi.org/10.1016/S1479-3598(00)01004-9

Government Regulation Number: 47 of 2012 About Social and Environmental Responsibility of Limited Liability Companies.

Gray, R., Kouhy, R., & Lavers, S. (1995). Corporate Social and Longitudinal Study Of UK Disclosure. Accounting, Auditing & Accountability Journal, 8(2), 47–77.

Gupta, J. (2015). Role of Green Banking in Environment Sustainability – A study of selected Commercial Banks in Himachal Pradesh.

International Journal of Multidisciplinary Research and Development, 2(8), 349–353. https://doi.org/10.13140/RG.2.2.33734.78407

Haniffa, R., & Hudaib, M. (2007). Exploring the ethical identity of Islamic Banks via communication in annual reports. Journal of Business Ethics, 76(1), 97–116. https://doi.org/10.1007/s10551-006-9272-5

Hart, S. L., Milstein, M. B., & Caggiano, J. (2003). Creating sustainable value. Academy of Management Executive, 17(2), 56–69. https://doi.org/10.5465/ame.2003.10025194

Hartanti, D. dan Fitria, S. (2010). Islam Dan Tanggung Jawab Sosial: Studi Perbandingan Pengungkapan Berdasarkan Global Reporting Initiative Indeks dan Islamic Social Reporting Indeks.

Hummel, K., Laun, U., & Krauss, A. (2020). Management of environmental and social risks and topics in the banking sector - An empirical investigation. British Accounting Review, December 2015, 100921. https://doi.org/10.1016/j.bar.2020.100921

Indonesian Government. (2014). Indonesian Government Law No 79 In 2014 About National Energy Policy. 8.

Iqbal, M., Suviitawat, A., Nisha, N., & Rifat, A. (2016). The role of commercial banks in green banking adoption: a Bangladesh perspective. International Journal of Green Economics, 10(3/4), 226. https://doi.org/10.1504/ijge.2016.10002862

Khalil, S., & O’sullivan, P. (2017). Corporate social responsibility: Internet social and environmental reporting by banks. Meditari Accountancy

Research, 25(3), 414–446. https://doi.org/10.1108/MEDAR-10-2016-0082

Kumar, R., Pande, N., & Afreen, S. (2018). Developing a GRI-G4-based persuasive communication framework for sustainability reporting (SR): Examining top 10 Indian banks. International Journal of Emerging Markets, 13(1), 136–161. https://doi.org/10.1108/IJoEM-01-2017-0015

Laplume, A. O., Sonpar, K., & Litz, R. A. (2008). Stakeholder theory: Reviewing a theory that moves us. In Journal of Management (Vol. 34, Issue 6). https://doi.org/10.1177/0149206308324322

Law of the Republic of Indonesia Number: 40 of 2007 About Limited Liability Companies.

Law of the Republic of Indonesia Number: 32 of 2009 About Environmental Protection and Management.

Leipziger, D. (2015). The Global Reporting Initiative. The Corporate Responsibility Code Book: Third Edition, 516–538. https://doi.org/10.9774/gleaf.9781783530670_31

Mara, U. T., & Mara, U. T. (2014). Social responsibility reporting of Islamic banks : evidence from Indonesia Faizah Darus * Hasan Fauzi Yadi Purwanto Haslinda Yusoff Azlan Amran Mustaffa Mohamed Zain and Dayang Milianna Abang Naim Mehran Nejati. 9(4), 356–380.

Martins, F. S., Cunha, J. A. C. da, & Serra, F. A. R. (2018). Secondary Data in Research – Uses and Opportunities. Revista Ibero-Americana de Estratégia, 17(04), 01–04. https://doi.org/10.5585/ijsm.v17i4.2723

Meng, X., Shi, L., Yao, L., Zhang, Y., & Cui, L. (2020). ur na l P re of. Colloids and Surfaces A: Physicochemical and Engineering Aspects, Iii, 124658. https://doi.org/10.1016/j.jclepro.2020.124840

Miah, M. D., Rahman, S. M., & Mamoon, M. (2020). Green banking: the case of commercial banking sector in Oman. Environment, Development and Sustainability, 0123456789. https://doi.org/10.1007/s10668-020-00695-0

Mohamed Zain, M., Darus, F., Yusoff, H., Amran, A., Fauzi, H., Purwanto, Y., & Abang Naim, D. M. (2014). Corporate ibadah : an Islamic perspective of corporate social responsibility. Middle-East Journal, 22(2), 225–232. https://doi.org/10.5829/idosi.mejsr.2014.22.02.21850

Nizam, E., Ng, A., Dewandaru, G., Nagayev, R., & Nkoba, M. A. (2019). The impact of social and environmental sustainability on financial performance: A global analysis of the banking sector. Journal of Multinational Financial Management, 49, 35–53. https://doi.org/10.1016/j.mulfin.2019.01.002

Nobanee, H., & Ellili, N. (2016). Corporate sustainability disclosure in annual reports: Evidence from UAE banks: Islamic versus conventional. Renewable and Sustainable Energy Reviews, 55, 1336–1341. https://doi.org/10.1016/j.rser.2015.07.084

Nugraheni, P., & Azlan Anuar, H. (2014). Implications of Shariah on the voluntary disclosure of Indonesian listed companies . Journal of Financial Reporting and Accounting, 12(1), 76–98. https://doi.org/10.1108/jfra-11-2011-0018

Othman, R., Thani, A. M., & Ghani, E. K. (2009). Determinants Of Islamic Social Reporting Among Top Shariah -Approved Companies In Bursa Malaysia. Research Journal of International Studies, 12(12), 4–20.

Otoritas Jasa Keuangan. (2015). Roadmap Keuangan Berkelanjutan di Indonesia Roadmap for Sustainable Finance in Indonesia 2015-2019.

Otoritas Jasa Keuangan, 1–40.

Parmar, B. L., Freeman, R. E., Harrison, J. S., Wicks, A. C., Purnell, L., & de Colle, S. (2010). Stakeholder theory: The state of the art. Academy of Management Annals, 4(1), 403–445. https://doi.org/10.1080/19416520.2010.495581

Plumlee, M., Brown, D., Hayes, R. M., & Marshall, R. S. (2015). Voluntary environmental disclosure quality and firm value: Further evidence. Journal of Accounting and Public Policy, 34(4), 336–361. https://doi.org/10.1016/j.jaccpubpol.2015.04.004

Sahoo, P., & Nayak, B. P. (2007). Green Banking in India. The Indian Economic Journal, 55(3), 82–98. https://doi.org/10.1177/0019466220070306

Santoso, N. T., Ningsih, R. M., & Paramitha, R. P. (2018). Determinants of Islamic Social Reporting Disclosure: The Case of Jakarta Islamic Index.

State-of-the-Art Theories and Empirical Evidence, 27–39. https://doi.org/10.1007/978-981-10-6926-0_2

Saridona, R., & Cahyandito, M. F. (2015). Social Performance Analysis of Indonesia Islamic Banking Using Islamic Social Reporting Index. 2010, 194–200. https://doi.org/10.2991/iceb-15.2015.29

Shaumya, K., & Arulrajah, A. A. (2017). Measuring Green Banking Practices: Evidence from Sri Lanka. SSRN Electronic Journal, 999–1023. https://doi.org/10.2139/ssrn.2909735

Sobhani, F. A., Amran, A., & Zainuddin, Y. (2012). Sustainability disclosure in annual reports and websites: A study of the banking industry in Bangladesh. Journal of Cleaner Production, 23(1), 75–85. https://doi.org/10.1016/j.jclepro.2011.09.023

Sunarsih, U., & Ferdiansyah, F. (2016). Determinants of The Islamic Social Reporting Disclosure. Al-Iqtishad: Journal of Islamic Economics, 9(1), 69–80. https://doi.org/10.15408/aiq.v9i1.3771

Tafti, S. F., Hosseini, S. F., & Emami, S. A. (2012). Assessment the Corporate Social Responsibility According to Islamic Values (Case Study: Sarmayeh Bank). Procedia - Social and Behavioral Sciences, 58, 1139–1148. https://doi.org/10.1016/j.sbspro.2012.09.1095

Traxler, A. A., Greiling, D., & Hebesberger, H. (2018). GRI Sustainability Reporting by INGOs: A Way Forward for Improving Accountability? Voluntas, 1–17. https://doi.org/10.1007/s11266-018-9976-z

Tsalis, T. A., Nikolaou, I. E., Konstantakopoulou, F., Zhang, Y., & Evangelinos, K. I. (2020). Evaluating the corporate environmental profile by analyzing corporate social responsibility reports. Economic Analysis and Policy, 66, 63–75. https://doi.org/10.1016/j.eap.2020.02.009

Ullmann, A. A. (1985). Data in Search of a Theory: A Critical Examination of the Relationships among Social Performance, Social Disclosure, and Economic Performance of U. S. Firms. The Academy of Management Review, 10(3), 540. https://doi.org/10.2307/258135

Vernon, P. (2015). Sustainable development goals. Economist (United Kingdom), 411(8953).

Wang, S., Wang, H., Wang, J., & Yang, F. (2020). Does environmental information disclosure contribute to improve firm financial performance? An examination of the underlying mechanism. Science of the Total Environment, 714(96), 136855. https://doi.org/10.1016/j.scitotenv.2020.136855

Wheeler, D., Colbert, B., & Freeman, R. E. (2003). Focusing on Value: Reconciling Corporate Social Responsibility, Sustainability and a Stakeholder Approach in a Network World. Journal of General Management, 28(3), 1–28. https://doi.org/10.1177/030630700302800301

Zafar, M. B., & Sulaiman, A. A. (2019). Corporate social responsibility and Islamic banks: a systematic literature review. Management Review Quarterly, 69(2), 159–206. https://doi.org/10.1007/s11301-018-0150-x

Zhang, Y., Ren, S., Liu, Y., & Si, S. (2017). A big data analytics architecture for cleaner manufacturing and maintenance processes of complex products. Journal of Cleaner Production, 142, 626–641. https://doi.org/10.1016/j.jclepro.2016.07.123

Ziolo, M., Pawlaczyk, M., & Sawicki, P. (2019). Sustainable Development Versus Green Banking: Where Is the Link? 53–81. https://doi.org/10.1007/978-3-030-16522-2_3

www.bi.go.id

www.globalreporting.org

www.worldbank.org




DOI: https://doi.org/10.33633/jpeb.v6i2.4355

Article Metrics

Abstract view : 241 times
PDF - 122 times

DOI (PDF): https://doi.org/10.33633/jpeb.v6i2.4355.g2534

Refbacks

  • There are currently no refbacks.


 

Jurnal Penelitian Ekonomi dan Bisnis (JPEB)

Published by
Fakultas Ekonomi dan Bisnis | Universitas Dian Nuswantoro
Jalan Nakula I No. 5-11, Semarang 50131, Indonesia

Email: udinusjpeb@gmail.com
Phone: (024) 3567010
Website:  http://publikasi.dinus.ac.id/index.php/jpeb

ISSN
2442-5028 (Print)
2460-4291 (Online)

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.