ESG DISCLOSURE IN CREATING STAKEHOLDERS VALUE THROUGH ENVIRONMENTAL MANAGEMENT ACCOUNTING

Abstract

This research seeks to investigate the impact of ESG disclosure on stakeholder value creation through environmental management accounting. This research is driven by the limitations that uses subjective measures in measuring and evaluating environmental management accounting. This study is also motivated by the limitations of previous research that does not consider all stakeholders in the distribution of wealth such as the community, so this study adds the community in measuring stakeholder value creation using the entropy weighting method. The findings of the research found that ESG disclosure has no impact on stakeholder value creation. However, ESG disclosure has an effect on the creation of stakeholder value through environmental management accounting. This suggests that businesses in Indonesia remain concentrated on short-term profits. The results of this study also found that stakeholder value creation has begun to shift from shareholders to other stakeholders.