Corporate Social and Environmental Strategy and Reporting in Indonesian Plantation Industry

Intan Belinda Lestari(1), Noradiva Hamzah(2), Ruhanita Maelah(3),

(1) Universiti Kebangsaan Malaysia, Faculty of Economics and Management, Bangi, Malaysia
(2) Universiti Kebangsaan Malaysia, Faculty of Economics and Management, Bangi, Malaysia
(3) Universiti Kebangsaan Malaysia, Faculty of Economics and Management, Bangi, Malaysia


This study aims to investigate how corporate social and environmental strategy can contribute to corporate social and environmental reporting (CSER) in the plantation industry in Indonesia. This study employed a case study approach by using semi–structured interviews to collect data from Indonesian plantation companies listed in the Indonesia Stock Exchange (IDX) and state–owned plantation companies that included CSER in their annual report. The motivation of CSER implementation in Indonesian plantation companies was influenced by proactive and reactive strategies. The corporate social and environmental strategy of proactive principles would publish CSER due to the social discretion beyond the regulatory requirements or pressure of certain stakeholders, and prior to any negative information being received by the public. Moreover, the corporate social and environmental strategy of reactive principles would also publish CSER to meet stakeholders’ needs and demands, obtain good corporate image and reputation, and avoid negative impacts (e.g., harm, hazards, mishap, complaints, etc.). Therefore, corporate social and environmental strategy can contribute to CSER depending on whether the company has proactive or reactive principles. This research contributes to the knowledge of social accounting literature in which CSER practices can be influenced by corporate social and environmental strategy.


corporate social and environmental reporting, disclosure, resource–based view theory, strategy

Full Text:



Aragón-Correa, J. A., Hurtado-Torres, N., Sharma, S., & García-Morales, V. J. (2008). Environmental Strategy and Performance in Small Firms: A Resource-Based Perspective. Journal of Environmental Management, 86(1), 88–103.

Barba-Sánchez, V., & Atienza-Sahuquillo, C. (2016). Environmental Proactivity and Environmental and Economic Performance: Evidence from the Winery Sector. Sustainability, 8(10).

Calza, F., Cannavale, C., & Tutore, I. (2016). The Important Effects of National Culture on the Environmental Proactivity of Firms. Journal of Management Development, 35(8), 1011–1030.

Dahlander, L., & Piezunka, H. (2014). Open to Suggestions: How Organizations Elicit Suggestions through Proactive and Reactive Attention. Research Policy, 43(5), 812–827.

Daniel, A. A., Adewumi, A. R., & Adeyinka, A. J. (2015). Environmental Accounting – A Tool for Sustainable Development. International Journal of Advanced Academic Research, 1(2).

Djajadikerta, H. G., & Trireksani, T. (2012). Corporate Social and Environmental Disclosure by Indonesian Listed Companies on Their Corporate Web Sites. Journal of Applied Accounting Research, 13(1), 21–36.

Faboyede, O. S. (2011). Environmental Protection and Sustainability Reporting: Extensible Business Reporting Language (XBRL) Interactive Data to the Rescue. Journal of Sustainable Development and Environmental Protection, 1(2), 6–17.

Famiyeh, S., Kwarteng, A., & Dadzie, S. A. (2016). Corporate Social Responsibility and Reputation: Some Empirical Perspectives. Journal of Global Responsibility, 7(2), 258–274.

Fang, S.-R., Huang, C.-Y., & Huang, S. W.-L. (2010). Corporate Social Responsibility Strategies, Dynamic Capability and Organizational Performance: Cases of Top Taiwan-Selected Benchmark Enterprises. African Journal of Business Management, 4(1), 120–132.

Flammer, C. (2013). Corporate Social Responsibility and Shareholder Reaction: The Environmental Awareness of Investors. Academy of Management Journal, 56(3), 758–781.

Fleiss, J. L. (1971). Measuring Nominal Scale Agreement among Many Raters. Psychological Bulletin, 76(5), 378–382.

Galbreath, J. (2009). Building Corporate Social Responsibility into Strategy. European Business Review, 21(2), 109–127.

Garcés‐Ayerbe, C., Rivera‐Torres, P., & Murillo‐Luna, J. L. (2012). Stakeholder Pressure and Environmental Proactivity: Moderating Effect of Competitive Advantage Expectations. Management Decision, 50(2), 189–206.

Groza, M. D., Pronschinske, M. R., & Walker, M. (2011). Perceived Organizational Motives and Consumer Responses to Proactive and Reactive CSR. Journal of Business Ethics, 102(4), 639–652.

Haas, M. R., & Hansen, M. T. (2005). When Using Knowledge Can Hurt Performance: The Value of Organizational Capabilities in a Management Consulting Company. Strategic Management Journal, 26(1), 1–24.

Henriques, I., & Sadorsky, P. (1999). The Relationship Between Environmental Commitment and Managerial Perceptions of Stakeholder Importance. Academy of Management Journal, 42(1), 87–99.

Hossain, M. M., & Alam, M. (2016). Corporate Social Reporting (CSR) and Stakeholder Accountability in Bangladesh: Perceptions of Less Economically Powerful Stakeholders. International Journal of Accounting and Information Management, 24(4), 415–442.

Hossain, M. M., Momin, M. A., Rowe, A. L., & Quaddus, M. (2017). Corporate Social and Environmental Reporting Practices: A Case of Listed Companies in Bangladesh. Sustainability Accounting, Management and Policy Journal, 8(2), 138–165.

Iacobucci, D., & Churchill Jr., G. A. (2018). Marketing Research: Methodological Foundations (12th ed.). CreateSpace Publishing.

Jayanti, R. K., & Gowda, M. V. R. (2014). Sustainability Dilemmas in Emerging Economies. IIMB Management Review, 26(2), 130–142.

Menguc, B., & Ozanne, L. K. (2005). Challenges of the “Green Imperative”: A Natural Resource-Based Approach to the Environmental Orientation–Business Performance Relationship. Journal of Business Research, 58(4), 430–438.

Miles, M. B., Huberman, A. M., & Saldana, J. (2013). Qualitative Data Analysis: A Methods Sourcebook (3rd ed.). London: SAGE Publications, Inc.

Oeyono, J., Samy, M., & Bampton, R. (2011). An Examination of Corporate Social Responsibility and Financial Performance: A Study of The Top 50 Indonesian Listed Corporations. Journal of Global Responsibility, 2(1), 100–112.

Powell, T. C. (2001). Competitive Advantage: Logical and Philosophical Considerations. Strategic Management Journal, 22(9), 875–888.

Rasi, R. Z. R. M., Abdekhodaee, A., & Nagarajah, R. (2014). Stakeholders’ Involvements in the Implementation of Proactive Environmental Practices: Linking Environmental Practices and Environmental Performances in SMEs. Management of Environmental Quality: An International Journal, 25(2), 132–149.

Richards, L., & Morse, J. M. (2012). README FIRST for a User’s Guide to Qualitative Methods (3rd ed.). London: SAGE Publications, Inc.

Sambasivan, M., Bah, S. M., & Jo-Ann, H. (2013). Making the Case for Operating “Green”: Impact of Environmental Proactivity on Multiple Performance Outcomes of Malaysian Firms. Journal of Cleaner Production, 42, 69–82.

Torugsa, N. A., O’Donohue, W., & Hecker, R. (2013). Proactive CSR: An Empirical Analysis of the Role of its Economic, Social and Environmental Dimensions on the Association between Capabilities and Performance. Journal of Business Ethics, 115(2), 383–402.

Wagner, T., Lutz, R. J., & Weitz, B. A. (2009). Corporate Hypocrisy: Overcoming the Threat of Inconsistent Corporate Social Responsibility Perceptions. Journal of Marketing, 73(6), 77–91.

Wang, H.-L. (2014). Theories for Competitive Advantage. In H. Hasan (Ed.), Being Practical with Theory: A Window into Business Research (pp. 33–43). Wollongong: THEORI.

Weng, H.-H., Chen, J.-S., & Chen, P.-C. (2015). Effects of Green Innovation on Environmental and Corporate Performance: A Stakeholder Perspective. Sustainability, 7(5), 4997–5026.

Yin, R. K. (2017). Case Study Research and Applications: Design and Methods (6th ed.). London: SAGE Publications, Inc.

Yu, W., & Ramanathan, R. (2016). Environmental Management Practices and Environmental Performance: The Roles of Operations and Marketing Capabilities. Industrial Management and Data Systems, 116(6), 1201–1222.






  • There are currently no refbacks.

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