Abstract
This study explores the diffusion of sustainability reporting (SR) norms among private companies in Indonesia between 2010 and 2024, focusing on voluntary adoption in the absence of mandatory regulations. As an international norm promoting transparency and accountability in environmental and social governance, SR adoption in Indonesia highlights the influence of global standards on emerging markets. This research employs a constructivist grounded theory approach, using mixed-method data from interviews with private sector stakeholders and documents analysis. Key findings reveal that external pressures, including investor and customer demands, alongside competitive market dynamics, drive SR adoption. Companies align their practices with global sustainability goals, leveraging SR as a strategic tool for accountability and credibility. The study underscores the role of external coercion and sectoral competition in norm diffusion, offering insights into how emerging markets internalize international standards without regulatory mandates.
Details
Presentation Type
Paper Presentation in a Themed Session
Theme
KEYWORDS
Sustainability Reporting, Private Sector, Indonesia, Coercion, Diffusion, International Norms, Localization
