EXPLORING CSR REPORTING PRACTICES AND STRATEGIC FUND ALLOCATION IN PALM OIL COMPANIES
DOI:
10.54443/morfai.v4i4.2390Published:
2025-01-31Downloads
Abstract
Corporate Social Responsibility (CSR) has become a mandatory practice for companies, including those in the palm oil industry, which plays a significant role in the global economy. However, inconsistent accounting treatments for CSR expenditures have raised challenges in achieving transparency and accountability. This study examines the variations in CSR accounting practices among palm oil companies listed on the Indonesia Stock Exchange and their implications for financial transparency, stakeholder trust, and corporate sustainability. The findings reveal that companies adopt diverse approaches to reporting CSR expenditures, treating them as operating expenses, tax-related costs, or long-term investments. While some companies integrate CSR into sustainability initiatives aligned with global standards like ISPO and RSPO, others treat CSR as a compliance obligation. This inconsistency underscores the absence of explicit accounting standards for CSR, creating challenges for investors, auditors, and policymakers in assessing the impact of CSR activities. This study highlights the need for harmonised regulations and standardised CSR reporting practices to enhance financial transparency and accountability. By addressing these gaps, companies can strengthen stakeholder trust, improve corporate reputation, and contribute to the long-term sustainability of the palm oil industry.
Keywords:
Corporate Social Responsibility Palm Oil Industry CSR Accounting Financial Transparency Sustainability ReportingReferences
Abdul Wahab, N., Yusoff, H., & Ahmad, N. (2019). Corporate Social Responsibility (CSR) Disclosure and Corporate Performance for Malaysian Plantation and Consumer Product Sectors. The Journal of Social Sciences Research, SPI 1, 59–68. https://doi.org/10.32861/jssr.spi1.59.68
Adams, C. A. (2004). The ethical, social and environmental reporting‐performance portrayal gap. Accounting, Auditing & Accountability Journal, 17(5), 731–757. https://doi.org/10.1108/09513570410567791
Ariastini, N. N., & Semara, I. M. T. (2019). Implementasi Konsep Triple Bottom Line Dalam Program Corporate Social Responsibility Di Hotel Alila Seminyak. Jurnal Ilmiah Hospitality Management, 9(2), 160–168. https://doi.org/10.22334/jihm.v9i2.155
Chowdhury, N., Balaraman, P. K., Liu, J., & Guo, X. (2025). The influence of stakeholder theory and Islamic faith on employee perception of CSR. Journal of Islamic Marketing, 16(1), 306–325. https://doi.org/10.1108/JIMA-07-2023-0202
Di Maddaloni, F., & Derakhshan, R. (2024). Stakeholders’ perception of organization: an attribution and fairness perspective. International Journal of Managing Projects in Business, 17(1), 27–49. https://doi.org/10.1108/IJMPB-08-2023-0178
Distiawati, R. P., Wardhana, E. T. D. R. W., & Handayati, P. (2021). Environmental Cost Analysis of PT. Gudang Garam Tbk. International Journal of Accounting & Finance in Asia Pasific, 4(1), 15–23. https://doi.org/10.32535/ijafap.v4i1.1029
Elkington, J. (1997). Cannibals With Forks: The Triple BottomLine of 21st Century Business. Capstone Publishing Limited.
Elkington, J. (1999). Cannibals with Forks: The Triple Bottom Line of 21st Century Business. Capstone.
Eng, N., Troy, C. L. C., & Bortree, D. S. (2024). Symbolic and substantive legitimation: examining corporate commitments to sustainable development goal 12. Journal of Communication Management, 28(1), 74–92. https://doi.org/10.1108/JCOM-06-2022-0075
Freeman, R. E. E., & McVea, J. (2001). A Stakeholder Approach to Strategic Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263511
Ginanti, & Soufyan, D. A. (2024). Rasio Keuangan Dan Financial Distress Pada Perusahaan Agrikultur Yang Terdaftar Di Bursa Efek Indonesia. JURNAL AKUNTANSI MUHAMMADIYAH, 14(1), 158–173. https://doi.org/https://doi.org/10.37598/jam.v1i1.2120
Hendarjanti, H., & Nawangsari, L. C. (2023). How does the green competitive advantage of building a sustainable palm oil industry? The role of green innovations as a mediation. Corporate Governance and Organizational Behavior Review, 7(3), 57–69. https://doi.org/10.22495/cgobrv7i3p5
Hizam, S. M., Othman, Z. I. S. binti, Amin, M. M., Zainudin, Z., & Fattah, M. F. A. (2019). Corporate Social Responsibility in Malaysia. International Journal of Financial Research, 10(5), 381. https://doi.org/10.5430/ijfr.v10n5p381
Hummel, K., & Schlick, C. (2016). The relationship between sustainability performance and sustainability disclosure – Reconciling voluntary disclosure theory and legitimacy theory. Journal of Accounting and Public Policy, 35(5), 455–476. https://doi.org/10.1016/j.jaccpubpol.2016.06.001
Jafri, N. H. S., Jimat, D. N., Azmin, N. F. M., Sulaiman, S., & Nor, Y. A. (2021). The potential of biomass waste in Malaysian palm oil industry: A case study of Boustead Plantation Berhad. IOP Conference Series: Materials Science and Engineering, 1192(1), 012028. https://doi.org/10.1088/1757-899X/1192/1/012028
Kaur, N., & Singh, V. (2021). Empirically examining the impact of corporate social responsibility on financial performance: evidence from Indian steel industry. Asian Journal of Accounting Research, 6(2), 134–151. https://doi.org/10.1108/AJAR-07-2020-0061
Kurniawan, S., & Disemadi, H. S. (2020). Corporation’s Criminal Liability in Indonesia: A Response to the Weak Enforcement of Corporate Social Responsibility. Lentera Hukum, 7(2). https://doi.org/10.19184/ejlh.v7i2.16754
Kustina, T. (2020). Pengaruh Kinerja Lingkungan, Sensitivitas Industri, Dan Ukuran Perusahaan, Terhadap Pengungkapan Corporate Social Responsibility Di Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. KRISNA: Kumpulan Riset Akuntansi, 12(1), 113–125. https://doi.org/10.22225/kr.12.1.1865.113-125
Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1. https://doi.org/10.1186/s40991-018-0039-y
Lee, L., & Hur, W.-M. (2024). How does corporate hypocrisy undermine corporate reputation? The roles of corporate trust, affective commitment and CSR perception. Journal of Product & Brand Management, 33(6), 654–667. https://doi.org/10.1108/JPBM-07-2023-4605
LEH CHING, J. Y. (2019). A Case Study Into The Sustainability Journey And Biodiversity Conservation Projects In Sarawak By Sarawak Oil Palms BERHAD. Journal of Oil Palm Research. https://doi.org/10.21894/jopr.2019.0036
Maya Sari, D., Aceh, P., & Aceh, B. (n.d.). Stock Price Dynamics Of Palm Oil Plantation Firms: Insights From Current Ratio, Return On Asset And Firm Size. https://radjapublika.com/index.php/IJEBAS
Morgans, C. L., Meijaard, E., Santika, T., Law, E., Budiharta, S., Ancrenaz, M., & Wilson, K. A. (2018). Evaluating the effectiveness of palm oil certification in delivering multiple sustainability objectives. Environmental Research Letters, 13(6), 064032. https://doi.org/10.1088/1748-9326/aac6f4
Mu, H.-L., Xu, J., & Chen, S. (2024). The impact of corporate social responsibility types on happiness management: a stakeholder theory perspective. Management Decision, 62(2), 591–613. https://doi.org/10.1108/MD-02-2023-0267
Pramana, P. D., Utari, P., & Naini, A. M. I. (2020). Melihat citra perusahaan melalui big data: Polemik beasiswa perusahaan rokok. Jurnal Studi Komunikasi (Indonesian Journal of Communications Studies), 4(3), 716. https://doi.org/10.25139/jsk.v4i3.2467
Primadasa, R., & Tauhida, D. (2020). Hubungan antar Hambatan Green Supply Chain Management (GSCM) pada Industri Kelapa Sawit di Indonesia. Jurnal Optimasi Sistem Industri, 19(1), 40–49. https://doi.org/10.25077/josi.v19.n1.p40-49.2020
Rahma, A. A., & Aldi, F. (2020). Effect of Foreign Commissioners, Ethnic Commissioners, Feminism Commissioners Towards CSR Disclosure. Assets: Jurnal Akuntansi Dan Pendidikan, 9(1), 16–29. https://doi.org/10.25273/jap.v9i1.5564
Rodrigues, R. A. (2024). Corporate Social Responsibility Strategy: The Effects of Legitimacy and Authenticity on Corporate Reputation* (pp. 37–72). https://doi.org/10.1108/S1569-376720240000023003
Siaw, C. A., Lie, D. S., & Govind, R. (2022). Putting your mouth where your money goes! “Where” and “how” to communicate to maximize the impact of corporate social programs. European Journal of Marketing, 56(12), 3381–3417. https://doi.org/10.1108/EJM-08-2021-0636
Soleha, N., & Rosiana, R. (2021). Exploring Sustainability Reports in The Indonesian Palm Oil Industry. Journal of Applied Business, Taxation and Economics Research, 1(1), 77–94. https://doi.org/10.54408/jabter.v1i1.23
Suchman, M. C. (1995). Managing Legitimacy: Strategic and Institutional Approaches. The Academy of Management Review, 20(3), 571. https://doi.org/10.2307/258788
Suryadi, S., Dharmawan, A. H., & Barus, B. (2020). Ekspansi Perkebunan Kelapa Sawit : Persoalan Sosial, Ekonomi dan Lingkungan Hidup (Studi Kasus Kab. Pelalawan, Riau). Jurnal Ilmu Lingkungan, 18(2), 367–374. https://doi.org/10.14710/jil.18.2.367-374
Utari, I. G. A. D., Pramitari, I. G. A. A., & Yunita, N. P. M. S. (2021). Corporate Social Responsibility Dan Profitabilitas Perusahaan Perbankan Di Indonesia. Buletin Studi Ekonomi, 239. https://doi.org/10.24843/BSE.2021.v26.i02.p07
Vagtborg, F. H. (2024). Corporate Responsiveness and Sustainability Transition: Insights from a Danish–Malaysian Palm Oil Multinational*. In Sustainable and Resilient Global Practices: Advances in Responsiveness and Adaptation (pp. 149–191). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83797-611-920241007
Wicaksono, D. A., Rifin, A., & Pahan, I. (2018). The Sustainability of Three Indonesian Palm Oil Business Entities. Jurnal Manajemen Dan Agribisnis. https://doi.org/10.17358/jma.15.3.249
Wirawan, N. B., & Putri, N. K. (2022a). Pengaruh Karakteristik GCG Terhadap Pengungkapan CSR Perusahaan Yang Terdaftar Pada LQ45 BEI Periode 2017-2018 Menggunakan Asimetri Informasi Sebagai Variabel Intervening. Ratio : Reviu Akuntansi Kontemporer Indonesia, 3(1), 1. https://doi.org/10.30595/ratio.v3i1.7998
Wirawan, N. B., & Putri, N. K. (2022b). Pengaruh Karakteristik GCG Terhadap Pengungkapan CSR Perusahaan Yang Terdaftar Pada LQ45 BEI Periode 2017-2018 Menggunakan Asimetri Informasi Sebagai Variabel Intervening. Ratio : Reviu Akuntansi Kontemporer Indonesia, 3(1), 1. https://doi.org/10.30595/ratio.v3i1.7998
License
Copyright (c) 2025 Dara Angreka Soufyan, Rimal Mahdani, Hafizhah Risnafitri, Abrar Amri, Dewi Maya Sari
This work is licensed under a Creative Commons Attribution 4.0 International License.
Downloads
How to Cite
