Sustainability Reporting and Quality Management on Company Performance in Indonesia

Abstract

The aim of this paper is twofold: 1) to analyze the impact of corporate sustainability reporting and quality management on firm performance in Indonesia, and 2) to find out whether there is any significant difference between all sectors of industries in Indonesia concerning the impact of such reporting on firm performance. This study focuses on 697 publicly traded company with 270 samples in Indonesia. We utilized statistical package SMARTPLS analysis to assess both the direct and indirect effects of the hypothesized variables by employing content analysis, using binary (0 and 1) coding, to gauge the extent of sustainability performance disclosure according to the Global Reporting Initiative (GRI) framework. The findings from this analysis are then utilized to investigate the relationship between corporate sustainability reporting and company performance through the application of a logistic regression model. The finding reveals a noteworthy positive correlation between sustainability reporting and a company's performance. Additionally, it suggests that the influence of quality management can moderate this relationship between sustainability reporting and firm performance.