Cleaner and Responsible Consumption (Jun 2023)
Sustainability policies for small medium enterprises: WHO are the actors?
Abstract
Sustainability policies are needed to promote sustainability reporting and actions in companies, including small-and-medium-enterprises (SMEs). The purpose of this study is to provide a platform to define key actors in the development of sustainability reporting policies especially for SMEs. This study uses a qualitative approach, conducting a comprehensive internet-based literature study with the search terms “Sustainability in SMEs,” “Indonesian SMEs,” “CSR in SMEs,” “Policies for SMEs,” and “Regulations for SMEs.” To leverage the research results, we conducted semi-structured interviews with the Financial Services Authority (OJK), good corporate governance forums, reporters from the Ministry of Finance, representatives from the Ministry of Cooperatives and SMEs, the Ministry of Industry, and SMEs which are the suppliers of large companies. Currently, there is no policy that actively encourages and supports SME in developing sustainability reports in Indonesia. The two most relevant regulations are 29/POJK.04/2016 and 51/POJK.03/2017, which most apply to large companies and publicly listed companies. Large companies are obliged to promote the submission of sustainability reports, unlike the SMEs. This study highlights the crucial role of sustainability reporting in promoting sustainable practices among SMEs and emphasizes the importance of enforcing laws and regulations to promote corporate social responsibility (CSR) in SMEs to achieve sustainable development goals. The findings are expected to assist relevant stakeholders in developing policies to promote sustainability reporting and practices among SMEs, not only in Indonesia but also in other countries to support stronger economic sustainability.
