ESG Performance Research: Current Review in Indonesia

Anake Nagari, Meilinda Dwi Anugrah

Abstract


Environmental, Social, and Governance (ESG) is an important framework that focuses on a company’s environmental impact, social responsibilities, and governance systems, shifting the focus away from financial aspects. ESG performance is also increasingly being used as a benchmark for company performance and as a decisionmaking tool by stakeholders. Despite its worldwide popularity, ESG Performance is rarely discussed in Indonesian literature. Hence, this research tries to examine prior studies with topic of ESG Performance in Indonesia to give an update of the development and trends. Literature review method is utilized, which data is collected from reputable Indonesian journals indexed by SINTA. Data was gathered from 104 economic journals, yielding a total of six articles distributed across six journals. According to the research results, the most dominant topic is the impact of ESG performance on firm performance, and the most used theories are stakeholder and agency theory. All of the articles share several similar characteristics, such as using public companies as research settings, employing secondary data collection methods, and using regression as data analysis techniques. Relationship mapping of the variables reveals that in the sample articles, ESG performance is only analyzed as an antecedent influencing other variables, except for one article which uses ESG performance as a moderating variable. It is hoped that this research will provide researchers with new ideas for research opportunities that will improve ESG Performance-related literature, and will raise awareness among companies about the significance of ESG Performance to their companies.

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References


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