بخشی از مقاله (انگلیسی)
This study aims to examine the effect of the environmental accounting strategy on sustainability performance and explore waste management as a mediation between environmental accounting strategy and the sustainability performance of Micro, Small and Medium Enterprises (MSMEs). Research data was collected from 194 MSMEs in East Java Indonesia through online and offline questionnaires. The data analysis is performed with PLS-SEM. The results of the study found that the MSME’s environmental accounting strategy had an effect on sustainability performance, and it was proven that MSME’s waste management mediated the effect of environmental accounting strategy on MSME sustainability performance. The originality of this research is the development of research instruments, which combine from various sources from previous researchers, GRI standards and Indonesian Government Regulations so that they can contribute Environmental Management Accounting literature and practical contributions to MSMEs and related institutions in determining sustainability performance strategies. This research implication supports the goals of the Indonesian Government’s Sustainability Development Goals (SDGs) regarding SDGs Goal number 12 Responsible consumption and production. The government needs to establish a waste management policy to improve environmental problems. The implications of future research can collect larger data and can compare the MSMEs between emerging countries. Also, MSMEs need to establish strategic Environmental Accounting so that it has an impact on sustainability performance.
Companies produce goods or services using raw materials and other materials in the production process. As a result, it impacts material waste, product, and packaging waste. The impact on economic sustainability can reduce sales and operating profits because consumers prefer environmentally friendly products. The impact on environmental sustainability not only can reduce environmental damage such as soil and water pollution and increased global warming but also decrease in employee welfare along with a decrease in operating profit.
Moreover, management’s understanding and knowledge of environmental accounting strategies and waste management are essential in achieving business sustainability in companies, including Micro, Small, and Medium Enterprises (MSMEs). The negative impacts of MSMEs include environmental pollution from production waste. As many as five industries are the biggest producers of B3 (Toxic Hazardous Materials) waste in Indonesia, namely: the metal, chemical, electricity, sugar, and paper industries. As stated by the Deputy Chairperson of Investment in East Java, Turino Junaidi, said that the amount of MSME waste is large, but the level of investment for the waste treatment industry is still small (www.kompasiana.com). For example, from 71 SMEs making tofu in Jombang, almost all of the soybean waste is disposed of together on village roads before finally being dumped into the river. As a result, it polluted the environment in three villages and even polluted surface water and well water. (www.jatim.kompas.tv/article/126221). Therefore, the environmental problems are mostly caused by the impact of economic and social activities of companies, including Micro, Small Medium Enterprises (MSMEs). Polluted water sources, polluted air, deforested forests, and global warming have damaged the environment. People’s awareness demands the importance of protecting environmentally friendly production processes and being concerned with business continuity than the short-term goal of profit.
Conclusion and implication of the research
Indonesia is concerned with Green Accounting because MSMEs waste is quite high and poor waste management. The East Java government has the second largest MSMEs in Indonesia and has a problem with industrial waste. However, it does not take maximum responsibility for product waste and an impact on low sustainability performance. This indicates the need for an Environmental Accounting strategy to support policies to minimize environmental costs related to environmental prevention costs for waste reduction employee training, environmental prevention costs for waste recycling training, environmental detection costs for environmentally friendly product inspection, internal failure costs for waste treatment and failure costs. external for cleaning polluted environment. This research implication supports the goals of the Indonesian Government’s Sustainability Development Goals (SDGs) regarding SDGs Goal number 12 Responsible consumption and production. The government needs to establish a waste management policy to improve environmental problems. Therefore all parties, namely: entrepreneurs including MSMEs, government, private sector, communities including financial institutions have the same responsibility to carry out activities and run a business with due regard to production that is responsible for the environment and society.