Social Sustainability Disclosures: Evaluating Sustainability Reporting in Indonesia and Malaysia
DOI:
https://doi.org/10.61132/ijema.v3i2.1259Keywords:
Indonesia, Malaysia, Social Issues, Social Sustainability, Sustainability ReportingAbstract
As the world’s top producers of palm oil, Indonesia and Malaysia continue to face challenges in disclosing social issues through corporate sustainability reports. This study evaluates the disclosure of social sustainability issues in both countries, focusing on transparency and alignment with international standards, particularly the Global Reporting Initiative (GRI). Using a qualitative approach, the study analyzes secondary data of the palm oil corporate sustainability reports in Indonesia and Malaysia. Findings indicate that while both Indonesian and Malaysian firms report on social sustainability, there are differences in depth and focus. Malaysian companies disclose more consistently on occupational health and safety (GRI 403) and diversity (GRI 405), while Indonesian firms score higher on child labor (GRI 408) and non-discrimination (GRI 406), though overall disclosure in sensitive areas remains limited. The study attributes inconsistencies to regulatory differences, limited alignment with global standards, and varied stakeholder pressure. It offers insights for improving corporate accountability and guiding policy development in Southeast Asia.
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