Question

a. What are the internal and external benefits for the companies when they apply and comply with some reporting standards (e.g:GRI Standards, or SASB)?

b. Should publishing the Sustainability Report become mandatory for all of public listed companies (Tbk) in Indonesia or remain as voluntary?

Answer 1

1.internal and external benefits for the companies when they are applying and complying with reporting standards are as follows-

Internal benefits will be as follows-

A. it will help them to manage their business in a structured way and report their books of account in a structured way.

B.it will help them to keep better internal control in place due to standard regulations

C.it will help them to assign responsibilities and place better control system in the overall company.

External benefits are as follows-

A. It will help them to follow standard set of rules and guidelines which will be providing a better transparent system in the entire organisation.

B.it will help them to make the public disclosure of requirements in a better way and it will also help them to protect the interest of the stakeholders

C.it will help them to abide by the international rules and regulations and help them to attract the global investors as well.

2.publishing the sustainability report should be becoming mandatory for various companies in Indonesia because it will be helping them in order to protect the interest of the stakeholders and provide them with a better projection of the performance of the management.

sustainability report is a report which will be including the impact of the business organisations activities on the social, economic and environmental front.

sustainability report for the listed company will help them in order to report better profits in place and they will be giving them the stakeholders a better idea about the value creation of the company and it will be e leading to long-term sustainability of the company rather than short term profitability so investors can make better decisions about the company and it will also help in protection of the stakeholders interest and those companies who are giving a special emphasis on the social and environmental concern will be preferred by investors.

So it can be advocated that sustainability report for listed company in Indonesia should be made mandatory as per my opinion.