Sustainable Development Goal Disclosures: Do They Support Responsible Consumption and Production?(A Study of Indonesian Companies)

Abstract

Corporate social responsibility (CSR) is one of the tools used to achieve sustainable development goals (SDGs). The purpose of this paper is to examine whether CSR activities in Indonesian companies support and align to the SDGs, especially in achieving the goal of responsible consumption and production. The data was collected from 453 annual reports and 44 sustainability reports of Indonesian listed companies from 2014 until 2016. The total data observation was from 585 reports. Content analysis was applied to examine the disclosures in both the annual and sustainability reports. Firstly, the analysis targeted sustainability reports. However, due to the limited number of sustainability reports, annual reports were also analyzed for the most recent year when this study was undertaken, which was 2016. The 2016 annual report content analysis shows that Indonesian companies tend to support the achievement of (1) sustainable cities and communities, (2) good health and well-being, (3) decent work and economic growth, (4) responsible consumption and production, and (5) quality education. The content analysis results for the 2014e2016 sustainability reports were found to be similar to the annual report analysis, albeit in a different order: (1) good health and well-being, (2) quality education, (3) sustainable cities and communities, (4) decent work and economic growth, and (5) responsible consumption and production. In short, based on both the annual and sustainability reports, Indonesian companies are likely to support these five SDG priorities. SDG goals are expected to be in line with the country’s commitment. However the support from the companies is not yet aligned to the SDG priorities selected in Indonesia. The results from this analysis can be used to encourage the Government to socialize and provide an understanding of SDGs and the country’s commitment to Indonesian companies. In addition, this study can be used to draw useful perspectives, not only for the Indonesian Government, but also for the other 193 countries that have adopted the SDGs. The results should encourage companies to implement business activities, in particular CSR activities that incorporate the SDG priority development targets. Also, this study can be a platform to provide a comprehensive picture to support SDGs, particularly in achieving the targets for responsible consumption and production. Other countries are expected to start examining their business activities, including CSR programs, in order to support and align with the country’s SDG targets. This evaluation is important, as the SDG initiative will soon be reaching the first one third of the 2030 target implementation timeframe, so time cannot be wasted.