2015

THE MECHANISM OF COMPANY

RESPONSE TO GOVERNMENT
INITIATED REPORTING
PROGRAM: A MODEL

VIDAYANA SOEBAGIO
ID 15893298

AUT | Auckland
Student Name : Vidayana Soebagio Student ID : 15893298

INTRODUCTION

Environmental issue has become an important topic of discussion in business. More and more
businesses have started to publish environmental report, following the trend of environmental
disclosure program. Environmental report is an annual report about the company’s environmental
performance and it might related to company waste , pollutant, emission or energy reduction. The
availability of such report makes it easier for stakeholder to monitor the environmental performance of
companies (Clarkson, Overell & Chapple, 2011). Environmental disclosure program may be done
voluntarily or as a response to new regulation.

There are several categories of environmental report, based on the intention of publishing or initiative.
According to the intention, there are voluntary and mandatory reports; while according to the reporting
initiative there are government, non-government organization, and industrial association initiative (Lyon
& Maxwell, 1999). Based on government initiative, there are two different types: one that only
publishes data and the one that publishes data and analysis (e.g. ranking of participating companies).

Companies who published their environmental report believed that by doing so, they will gain benefit
from it. Previous studies in business and management have found that there is a relationship between
reporting and company performance. For instance, Michelon (2011) found that there is an association
between environmental report and company reputation, while Cho & Patten (2007) established that
environmental disclosure can be used as company legitimacy tools. Khlif, Guidara & Souissi (2015) found
that building an effective communication channel through environmental report can increase
stakeholders trust and loyalty. As a result, consumer might choose to consume products made by a
more sustainable company, making company sustainability report as a tool to create stronger demand.

Environmental issue is also a major concern of policy makers, and their concerns will have direct impact
to businesses operating within their sphere of authority. Studies on policy makers and their
environmental concerns show that there is a tendency to regulate pollutant, especially greenhouse
gasses and industrial waste. Several studies show that when government initiates environmental report,
it can make significant impact in pollutant reduction, as in the case of Indonesia (García, Afsah &
Sterner, 2009) and China (Dasgupta, Laplante, Mamingi & Wang 2001 ). In the case of Indonesia, data
shows that the amount of pollutant is decreased significantly after environmental report was published
(García et.al., 2009), while in the case of China the amount of pollutant was only slightly decreased
(Dasgupta et.al., 2001). In addition, Konar and Cohen (1997) found that after the implementation of
Toxic Release Inventory (TRI) disclosure program in the US, air and water pollutions have decreased
significantly.

The government initiative environmental report is intriguing to be studied further. First of all, although
the government makes the initiative, participation to this program is usually voluntary. Therefore, it is
interesting to study the motivation of companies to participate in the program. In addition, although
both studies of companies and policy makers have shown relationship between environmental
disclosure to company performance and the role of government environmental report program to
pollutant reduction, there is a missing link that needs to be further established: the way companies and
managers response to it. In his Indonesian case study, García et.al. (2009) proposed that there is still
limited knowledge to explain how government reporting program can motivate companies to reduce
their emission or waste. A study by Annandale, Morrison-Saunders, and Bouma (2004) found a
relationship between government voluntary protection program and company environmental
Student Name : Vidayana Soebagio Student ID : 15893298

performance, but it does not focus on environmental report. Furthermore, it also does not explain how
government voluntary instrument is able to make companies to obtain better environmental
performance either. Therefore, to be able to achieve maximum benefit from environmental report
program, the following questions need to be examined further: How does the government
environmental report program influence company’s environmental performance? What are the
mechanisms that facilitate the response of companies towards government environmental reporting
program? Does the type of government reporting program contribute to company’s environmental
performance?

It is argued that those two questions are worth to be analyzed from the perspective of institutional
theory and resource-based view theory. The two theories are commonly used in explaining
environmental related topics, but each explains different perspective of organization (Berrone, Gelabert,
Fosfuri & Gomez-Mejia, 2007). Institutional theory explains that organizations react to external
pressures, while the resource-based view looks at the internal capability of organizations to create
competitive advantage (Berrone et.al, 2007). The two theories can complement and strengthening each
other’s analysis (Berrone et.al., 2007). Therefore, in institutional theory, government environmental
program can be considered as external pressure for the company. Using resource-based view theory,
the behavior of managers in responding to external pressure can be assessed further.

SUSTAINABILITY STRATEGY

All production activities produce waste, and the scale of waste production has grown with the
massification of industry around the world. It is now become crucial to think about the environmental
impact of the waste generated in the production process.

The growing concern of environment sustainability has been made global and is calling for global action.
From business and economic perspective, the UN conference about environment and development in
1992 was the starting point to discuss this issue in global forum. The outcome of this meeting was the
agreement to ensure that economic development has to consider social and environmental condition
for future generation. This concept is known as the triple bottom line strategy, that economic
development has to go together with social and environmental development (Elkington, 1998). Triple
bottom line strategy aims to achieve sustainable development, which is the condition of equilibrium
between economic, social and environment in the development process (Elkington, 1998).

The triple bottom line strategy is also relevant for business, and it can also serve as a way to generate a
competitive advantage. A company that is able to generate profit while being actively looking after the
social and natural environment is a sustainable enterprise. Sample of practices by a sustainable
enterprise include wise use of resources and harmful waste reduction. The efforts of being sustainable
can serve as a process to turn the company into a competitive organization (Toppinen & Hänninen,
2013). By introducing new products that are less destructive to natural and social environment, a
company can create a new market with fewer competitors. These new products will have a strong
differentiation from those produced by competitors and they may generate stronger customer loyalty
(Toppinen & Hänninen, 2013).

On top of making new lines of product, other strategies can also be adopted such as reduction of waste
or pollutant. Companies are often unaware of the harmful waste and substance they produced as the
production by-product. Should they become more aware, actions can be taken to minimize it. Waste
Student Name : Vidayana Soebagio Student ID : 15893298

minimization and resources efficiency can create a competitive organization because they could operate
the organization with minimum cost. A sample of comprehensive sustainability strategy is the strategy
of P&G (White, 2009). Realizing the customer demand for sustainable products, this consumer good
company adopted five sustainable strategies: sustainable innovations on products, sustainable
operations, social responsibility programs, developing sustainable-oriented workforce and practices, and
transparency to stakeholders (White, 2009). In 2008, they have successfully reduced 6% of their energy
use while still maintaining their business growth by 5%, while their total energy cut in 2007 has reached
46% from their 2002 usage (White, 2009).

The success story of P&G illuminates the capability of a company to achieve sustainability strategy by
using, nurturing and developing the company’s own resources. From the resource-based view theory,
this will create a strategy that is not easy to be imitated by their competitors.

SUSTAINABILITY REPORT
Information disclosure is widely used in the field of finance and accounting to analyze companies
performance. Accountants and financial analysts use disclosure reports, containing mainly the
companies’ financial condition, to analyze and make future prediction of a company’s performance.
Nowadays, companies not only need to disclose their financial performance, but they also need to
disclose their social or environmental performance.

Sustainability report is an information disclosure which reported the triple bottom line areas: economic,
environmental and social performance. In this report a company should disclose their activities related
to the environmental and social issues. In some reports, financial condition is also included. As have
been mentioned before, there are several different types of sustainability report. Focusing on
government reporting initiative there are two categories of report: the one which provide data only, and
the one which include detailed analysis and environmental performance (Dasgupta et al. 2007). Toxic
Release Inventory (TRI) is a report which only gives information about the level of pollutant produced by
a particular industry or company, while Evaluation of Rating Program (ERP) in Indonesia, Green Rating
Project (GRP) in India and Ecowatch program in Philippine disclose not only regular information about
pollutant that produce by company, but also provide performance evaluation.

Publishing sustainability report can serve different purposes for the company. Alonso-Almeida, Llach &
Marimon (2013) identify three purposes of environmental report. First of all, it is a good, valid and
reliable company communication channel, as it gives important and valuable information for their
stakeholders. Secondly, it also serves the purpose of building a positive image and reputation. Thirdly, it
also provides information to make certain evaluation or judgment. For example, investors might use the
report to calculate or forecast a company’s future rate of return and environmental risk before they
make a further decision (Wheeler & Elkington, 2001). In other words, environmental report can help
building a company’s image which can be converted into economic and financial benefit (Zadek, 2001).

There are several sustainability report initiatives that provide services for companies willing to publish
their environmental report. Each initiative has its own reporting format and standard, but the most
recognized is the Global Reporting Initiative (GRI) (Alonso-Almeida et al, 2013). GRI is an independent
international organization which provide a communication channel that can be used by any government
or organization to deliver information related to environment and sustainability issues (Li, Clarkson,
Richardson & Vasvari, 2008).
Student Name : Vidayana Soebagio Student ID : 15893298

GRI is the first organization that introduced sustainability reporting, and has been actively providing
assistance for companies. Collaborating with United Nation Environmental Program, GRI has been
publishing a lot of sustainability report from organizations around the world ainc3 1997 (Li et.al., 2008).
According to GRI, 93% of 250 the world’s biggest companies have published their sustainability
information (About GRI, n.d.). GRI has developed a reporting guideline that can be followed for those
company who want to produce a sustainability report. By producing a reporting guideline, it is hoped
that companies can produce a good quality report complying to the GRI principles: transparency,
inclusiveness, auditability, completeness, relevance, sustainability context, accuracy, neutrality,
comparability, clarity, and timeliness (Li, et.al., 2008).

GOVERNMENT INITIATED SUSTAINABILITY REPORT

Besides the internationally accepted GRI, several countries have their own national reporting initiative.
This national effort, such as China and Indonesia, was initiated by the respective government, aiming to
maintain each country’s environmental condition (García et.al., 2009; Dasgupta et.al., 2001). Three
reporting programs will be discussed below, which are the programs in Indonesia, China and the US.

Program for Pollution Control Evaluation and Rating (PROPER) is an Indonesian government program
aiming to reduce pollutant produced by industrial sector which existed in 1995-1997 under World Bank
initiative (García et.al., 2009). The main concept of this program is asking companies to publish their
environmental performance to public, and the government will monitor it in order to control pollutant.
Participation is voluntary, and every company who participates at this program will then be given a color
code, depending on their environmental performance level. There are five different colors used, each
color representing an environmental performance. Black is for company who perform below the
standards set by the government, while Red is given to those who have made some efforts but still
underperform. Blue is given to those who have achieved environmental performance standard, and
green is for the companies who show above environmental performance standard achievement. Gold is
for outstanding environmental performance companies who have met not only national standard but
the international standard as well. Although this program is no longer exist, it has been used as a model
for similar program in India and the Philippines (García et.al., 2009).

China is another country asking companies to report their sustainability performance. Different to
Indonesian report, Chinese sustainability report is linked to the financial market, or also called as market
based information. The government produces financial instruments such as company environmental
disclosure or emission index which can be traded through the financial market (Huang & Chen, 2015).
Every company listed in China Stock Exchange can produce an environmental report which will be
published as index that can be traded in Chinese financial market. Participation in this program is also
voluntary.

The United States also has environmental disclosure program called the Toxic Release Inventory (TRI).
TRI is non-market based, and is the oldest environment report program (Huang & Chen, 2015). The main
purpose of TRI is to provide information about the level of toxic released by companies. As it only
provides information, TRI does not rank the participating companies. TRI was introduced by US
government in 1986 as a response to environmental tragedy in Bhopal, India (Arora & Gangopadhyay,
1995). This program is a part of the Environmental Protection and Community Right to Know Act which
aims to inform public about the level of hazardous substance produced by industrial activities (Arora &
Gangopadhyay, 1995; Tietenberg, 1998). In TRI, companies should produce an annual report consisting
of the amount of toxic they produced, the frequency and the information about how they produce it
Student Name : Vidayana Soebagio Student ID : 15893298

(Tietenberg, 1998). All the data then will be published for public. Participation is mandatory for a certain
scale of industry, while voluntary for others.

Although there are different types of government initiated environmental report, they all have the same
objective: to control pollution level in the respective country. This is different to voluntary report
initiated by non-government institution (e.g. GRI and KPMG), which tend to be more organizational-
minded by focusing on organizational performance. The different types of government initiated
reporting program might influence company environmental performance in different ways.

The aim of non-evaluation government reporting is only to provide information for stakeholder,
therefore each stakeholder have to developed their own analysis for their own purposes. Consumer
might use this data to make their judgment about the company product, meanwhile investor might use
data for further investment decision. Environmental organization might use the data to reduce public
environmental risk exposure. However this phenomenon might influence company intention to reduce
their pollutant in different way from other type of government report which is the one that includes the
analysis of performance.

Company environment performance analysis repot might be considered as government judgment about
company environmental performance. As a result there is a probability that government might consider
to take further step to control the industrial pollutant by applying new rule or a standard that has to
comply by company.

From this perspective environmental disclosure can be considered as a tool which can help government
in reducing environmental degradation. By encouraging companies to disclose their environmental
performance, government will have a sufficient data which might needed to help them developing a
policy to protect the environment (Tietenberg, 1998). Government initiated reporting program usually
has monitoring and inspection mechanism to ensure that the company published the correct data and
to reduce the possibility of manipulation (García et.al, 2009; Huang & Chen, 2015).

THE INSTITUTIONAL THEORY: THE ROLE OF EXTERNAL PRESSURES

THEORY OF INSTITUTION
From organization perspective, government sustainability report program can trigger several external
pressure for companies. As in general government sustainability report program is used to influence
public behavior (Tietenberg, 1998). Based on the report, public can assess risks of pollutant produced by
companies. Consequently, if they perceived that they are exposed to high environmental risk, public can
force a company to reduce its pollutant. How public enforce company to reduce pollutant might be
done with many ways. Public might create an action to refuse to buy company product or push
government to perform a law enforcement. Public demand is thus act as external pressure on top of the
government regulation.

However, the the impact of public pressure depends on several factors such as company location and
ownership (García et.al., 2009). If the company is located in a densely populated area, the pressure will
be higher because there are more potential victims of company’s pollutant, thus they will have more
power to control the company (Tietenberg, 1998). Each company will also react differently to external
pressure, depending on the ownership type (García et.al., 2009). There are three different company
ownership: family owned, government, and national or multinational company. The multinational
company is more sensitive to public pressure (García et.al., 2009). As a foreign direct investment
Student Name : Vidayana Soebagio Student ID : 15893298

company, they need to build positive image to compete with local products. Moreover, multinational
companies have presence in different countries, and the pressure from the public in one country might
generate reactions from their customers in other countries (García et.al., 2009).

Applying environmental report as a tool brings several benefits for government. First of all, it is an
effective low cost regulation (Tietenberg, 1998). The government does not have to enforce its power in
demanding compliance from the companies because the public can make their demand to companies to
reduce pollutant. Another benefit is that the government can shift the funding of collecting data to the
companies, thus making it as a useful yet efficient strategy.

THE ROLE-BASED VIEW THEORY: MANAGER AS COMPANY’S RESOURCE

RESOURCE BASED VIEW
Resource –based view theory dealing with the issue related to what company have and what company
can do. This two things has to be perfectly match in order to create something that valuable for the
company. In other word the company internal resources become a key factor in developing sustainable
competitive strategy (Russo, & Fouts, 1997)

In this study, resource-based view theory will be used to observe manager as one of the resource that
the company have. Based on this theory, a company has three kinds of resources, which are tangible,
intangible and human resources (Russo & Fouts, 1997). Tangible resources are the company’s physical
assets and technology, while intangible resources are reputation or company good will. Human
resources include organization culture, communication capability, loyalty and also personnel
performance (Russo & Fouts, 1997).

Good manager is an important resource for a company, especially in dealing with external pressures.
Company’s performance might be achieved if it has managers with excellent capability (Berrone, 2007).
Manager is believed to be able to turn external pressure into a competitive advantage that is not easy to
be imitated by competitors. When a company has to deal with external pressure, the situation
influences the behavior of the manager as the company’s leading personnel. The way a manager
behaves under a particular circumstance of pressure becomes a success factor in overcoming the
situation, and it could bring the solution and actually improve company’s performance (Cordano &
Frieze, 2000). As well, the motivation of the managers will contribute to the company’s attitude towards
process to discover new ways to increase company’s perforce (Cordano, & Frieze, 2000).

In studies of environmental reporting, there are still limited studies on the antecedents that could
trigger manager intentions to improve company environmental performance. The behavior of manager
towards pollution prevention is known as an important factor that can influence the company strategy
adoption (Ashford, 1993; Dieleman & de Hoo, 1993; Kemp, 1993; Marcus, 1995; Schmidheiny, 1992 in
Cordano & Frieze, 2000). However, how managers behave towards external pressure has not been
explored in details. By having a better understanding on the antecedents, it may explain in more details
the way company responses to government environmental report program that result in better
environmental performance.

THE MECHANISM OF COMPANY RESPONSE TO GOVERNMENT INITIATED REPORTING PROGRAM: A

MODEL

We have discussed resource-based view theory and institutional theory separately in the previous
sections. In this section, the two theories are used in the context of sustainability reporting and the
Student Name : Vidayana Soebagio Student ID : 15893298

managers’ response towards it. Using both theories, some propositions are generated to build the
model of the mechanism of company response to government initiated reporting program. The
propositions are derived from literatures reviewed; however, it has to be acknowledged that the
number of literatures in this topic is still limited. Maxwell, Lyon and Hackett (1998) is the pioneer in this
area, and is mostly adopted in others works such as Blackwell (2004); Tietenberg (1998), Garcia et.al.
(2009).

Pre-emptive Future Regulation

The raising concerns over environmental issues provide companies with the ability to predict which
issues will become the government’s concern in the future (Lyon & Maxwell, 1999). Further, it also
means that the company might be able to forecast what regulations will be made in the future, thus it
will give them the time to simulate the impact and formulate strategies to address that future
regulation.

A company might choose to do a voluntary abatement, or lowering production pollution level

voluntarily, before the government regulates it. This strategy is beneficial for company as it gives the
company a head start. The rationale behind this idea is a connection between political cost, government
regulation and preempt stringent future regulation (Maxwell, Lyon & Hackett, 1998 in Lyon & Maxwell,
1999). Maxwell et.al. argue that access to information can contribute to the political cost that have to be
borne by environmental activists and relevant parties to put pressure to the government, which then in
turn will influence the likelihood of government publishing regulations of abatement. Therefore, the
higher the political cost, the more unlikely the government will get sufficient pressure to regulate
abatement. However, Maxwell et.al. also argue that voluntary abatement is a good strategy in either
political climate (high or low political cost). In a high political cost climate, showing voluntary abatement
will help companies to strengthen their image in the eye of customers, and at the same time only reduce
their pollutant to the level that they are willing to do. In low political cost climate, making preemptive
self-regulation can create bargaining power against future stricter regulation.

Proposition 1: Manager intention to preempt stringent future regulation contributes to the company
environmental performance

Weakening Forthcoming Regulations

When it seems difficult to preempt government regulation, voluntary abatement might be useful to
reduce the strictness of government regulation (Lyon & Maxwell , 1999). If a company has chosen to
reduce their pollutant much higher than others, there is a chance that the government will ask for their
input in policy making process, and their company standard might be use as the standard in the
government policy. This is clearly an advantage the high achiever company, as the standard determined
by the new regulation will not be an extra burden for them, thus creating an opportunity to make more
profit. Other companies will have to struggle to comply with the new standard, as they have to adopt
the cost to comply with it (Lyon & Maxwell , 1999).

P2: Manager intention to weaken forthcoming regulation contributes to company environmental

performance
Student Name : Vidayana Soebagio Student ID : 15893298

THE MECHANISM OF COMPANY RESPONSE TO GOVERNMENT INITIATED REPORTING PROGRAM

Reducing Regulatory Monitoring

A company will not feel comfortable when it has to operate under close monitoring by the government,
and it might influence their productivity. Therefore, to reduce the government monitoring, they prefer
to reduce their waste. To do voluntary abatement, a company may have to invest in new technology or
new methods of production that will lower the pollutant (Lyon & Maxwell, 1999). If the government can
see this effort, the possibility is that the company will create an image as a company that takes
sustainability seriously and will have lower probability to manipulate the standard or regulation. As a
result, the government will not put the company under close monitoring scheme (Lyon & Maxwell,
1999). It is hoped that looser government monitoring activities will improve working condition.

P3 : Manager intention to reduce regulatory monitoring contributes to company environmental

performance

Attracting green consumer

Nowadays, there is a trend that consumers are more interested to products related to the environment.
Either the product is produced using environmental friendly materials, technology or method
(Shashikiran & Madhavaiah, 2014). The rise of non-price factor assessment of product has increasingly
become the decision making factor in buying, particularly in higher income or higher education
consumer.

Previous studies have shown that consumers with higher education level have more intention to choose
organic product while those with lower education level tend to buy ordinary product (Nolan, 2006;
Speer, 2006 in Shashikiran & Madhavaiah, 2014). Higher income level consumers are more willing to pay
higher price to purchase products from a company who has strong environmental commitment (Arora &
Gangopadhyay, 1995). Gifford and Bernard (2010) examined the consumers intention to purchase
environmental friendly product. They found that organic products that have environmental information
Student Name : Vidayana Soebagio Student ID : 15893298

can be sold for 30% to 50% higher than ordinary products (Gifford and Bernard, 2010 in Shashikiran &
Madhavaiah, 2014). Therefore, the level of income and education has a strong influence in choosing
products. A new segment in market can be developed according to income level (Arora &
Gangopadhyay, 1995).

Many companies see that there is an opportunity to create a new market by providing “green products”,
which is also potentially become a competitive advantage. To initiate this strategy, government
environment report program might provide a good opportunity to start their “green product” or “green
consumer”, as because the government provides them a channel to communicate their “green product”.

P4 : Manager intention to attract “green consumer” contributes to company environmental

performance

Pressure from Industrial Organization

Industrial association has significant power to influence company to reduce pollutant (Khanna & Damon,
1998). An example is the adoption of Responsible Care program by Chemical Manufacturer Association
(CMA) which encourage their members to comply with management practice to reduce their waste
(Khanna & Damon, 1998). In their study, Khanna and Damon (1998) compared the rate of toxic release
between companies who are members of CMA and non-members, and they found that CMA members
have lower rate of toxic release than non member (Khanna & Damon,1998). The program or
requirement made by industrial organization can be seen as external pressure that has to be dealt with.

P5 : Manager intention to reduce pressure from industrial association contributes to company

environmental performance

Type of Report.
As has been discussed above, government environmental reporting program are categorized into two:
the one with rank and without rank. The impact of report required may be different. The government
who publishes a report with analysis and ranking will be taken more seriously, as companies will be
compared to each other. This kind of report also provides more information for managers, as they
become more aware of their company position and their own performance.

P5 : The type of government reporting program contributes to company environmental performace.

CONCLUSION

This study aims to explore the contribution of government environmental report program in improving
company environmental performance, since this phenomenon has not been well explored yet.
Government environmental report program can be seen as external pressure for company, and the
impact of this pressure to company as organization will be assessed through managerial behavior
responses. Institutional theory and resource-based view theory are used to study this phenomenon.

Based on previous studies, there are several aspects that considered can fulfill the gap of the voluntary
reporting issues. Pre-emptive future regulation, weakening forthcoming regulations, reducing regulatory
monitoring, attracting green consumer and pressure from industrial organization, are the underlying
reason of the company to disclose their environmental report voluntarily. From organizational
perspective, these aspects might motivate managers to improve company performance, since managers
Student Name : Vidayana Soebagio Student ID : 15893298

are considered to have key roles in organization. In considering that there are two different categories
of reporting, this study also wants to establish whether the type of report provides more motivation to
increase company environmental performance.

IMPLICATIONS FOR BUSINESS

In general this study recommends that government environmental disclosure program can persuade
company to reduce pollutant even there is no formal rule and regulation. Therefore, companies might
use this program as their sustainability strategy driver.

Understanding about the driver of organization transformation related to environmental issue is very
important in order to know the obstacles and the way to solve them. In studying this phenomenon, one
needs to focus on the behavior of the human resource in the organization. Managers as individual can
be considered as a key person in organization, because managers have power to make a decision that
can influence the transformation of the organization. Therefore, by understanding this issue, it will bring
benefit to the companies by providing information for the manager on how to bring changes to their
company in becoming a sustainable enterprise.

Limitation
This study is limited to the government environmental report program, other reporting schemes such as
GRI reporting is not included.

Suggestion Future Research

There are many unanswered questions related to the mechanism of the role of sustainability report to
influence company environmental performance from the perspective of organizational behavior. The
role of report to influence company innovativeness is one of the interesting issues which has not
explored very well yet and need to study further.

References

Annandale, D., Morrison-Saunders, A., & Bouma, G. (2004). The impact of voluntary environmental
protection instruments on company environmental performance. Business Strategy and the
Environment Bus. Strat. Env., 13, 1-12.

About GRI. (n.d.). Retrieved October 12, 2015, from

https://www.globalreporting.org/information/about-gri/Pages/default.aspx

Alonso-Almeida, M., Llach, J., & Marimon, F. (2013). A Closer Look at the ‘Global Reporting Initiative’
Sustainability Reporting as a Tool to Implement Environmental and Social Policies: A Worldwide
Sector Analysis. Corp. Soc. Responsib. Environ. Mgmt. Corporate Social Responsibility and
Environmental Management, 21, 318-335.

Arora, S., & Gangopadhyay, S. (1995). Toward a theoretical model of voluntary overcompliance. Journal
of Economic Behavior and Organization, 28, 289-309.

Berrone, P., Gelabert, L., Fosfuri, A., & Gomez-Mejia, L. (2007). Can Institutional Forces Create
Competitive Advantage? An Empirical Examination of Environmental Innovation. SSRN Electronic
Journal SSRN Journal.
Student Name : Vidayana Soebagio Student ID : 15893298

Blackman ,A ., Afsah, S., & Ratunanda, D., (2004). How Does Public Disclosure Work? Evidence from
Indonesia's PROPER Program. Human Ecology Review, Vol. 11(No. 3), pp. 235-246.

Cho, C., & Patten, D. (2007). The role of environmental disclosures as tools of legitimacy: A research
note. Accounting, Organizations and Society, 32, 639-647.

Clarkson, M,P., Overell, B, M., & Chapple, L. (2011). Environmental Reporting and its Relation to
Corporate Environmental Performance. ABACUS, 47(1), 1467-6281.

Cordano, M., & Frieze, I. (2000). Pollution Reduction Preferences Of U.s. Environmental Managers:
Applying Ajzen's Theory Of Planned Behavior. Academy of Management Journal, 43(4), 627-641.

Dasgupta, S., Laplante, B., Mamingi, N., & Wang, H. (2001). Inspections, pollution prices, and
environmental performance: Evidence from China. Ecological Economics, 36, 487-498.

García, J., Afsah, S., & Sterner, T. (2009). Which Firms are More Sensitive to Public Disclosure Schemes
for Pollution Control? Evidence from Indonesia’s PROPER Program. Environmental and Resource
Economics Environ Resource Econ, 42, 151-168.

Huang, R., & Chen, D. (2015). Does Environmental Information Disclosure Benefit Waste Discharge
Reduction? Evidence from China. J Bus Ethics Journal of Business Ethics, 535-552.

Konar, S., & Cohen, M. (1997). Information As Regulation: The Effect of Community Right to Know Laws
on Toxic Emissions. Journal of Environmental Economics and Management, 32, 109-124.

Lyon, T., and J. Maxwell. 1999. Voluntary Approaches to Environmental Regulation: A Survey. In
Environmental Economics: Past Present and Future, edited by M. Franzini and A. Nicita,
Brookfield, VT: Ashgate Publishing Ltd

Michelon, G. (2011). Sustainability Disclosure and Reputation: A Comparative Study. Corp Reputation
Rev Corporate Reputation Review, 14(2), 79-96.

Russo, M., & Fouts, P. (1997). A Resource-Based Perspective On Corporate Environmental Performance
And Profitability. Academy of Management Journal, 40(3), 534-559.

Shashikiran., L., & Madhavaiah, C. (2014). Impact of Demographic s on Consumers Willingness to Pay
Premium: A study of Organic food product. International Journal of Research and Developm Ent -
A Management Review, 3(3).

Toppinen, A., & Hänninen, V. (2013). Sustainability management with traditional and innovative social
media communication tools. Proceedings from The XXIV ISPIM Conference – Innovating in Global
Markets: Challenges for Sustainable Growth. Helsinki, Finland.

Wheeler, D., & Elkington, J. (2001). The end of the corporate environmental report? Or the advent of
cybernetic sustainability reporting and communication. Business Strategy and the Environment
Bus. Strat. Env., 1-14.

Zadek, S. (2001). The civil corporation the new economy of corporate citizenship. London: Earthscan