ENVIRONMENTAL INCIDENT, PEMBERITAAN MEDIA DAN PRAKTIK PENGUNGKAPAN LINGKUNGAN (ENVIRONMENTAL DISCLOSURE) : STUDI PADA SUSTAINABILITY REPORT ASIA PULP AND PAPER Co., Ltd.

Abstract

This study is a case study about corporate social responsibility in a multinational company in regard to identify a link between APP’s environmental incidents in Indonesia andits disclosure initiatives subsequent to the incidentsin sustainability reporting of PT. Asia Pulp and Paper (APP). This study aims to:understand whether newsmedia attention as proxy for public concern has an impact on APP disclosure practices; analyze the media attention associated with the environmental incidents; analyze the company comply with the standard of Global Reporting Initiative in APP sustainability report; analyze the corporate strategy in its sustainability report after the incidents. Data collection methods used in this study were analysis ofcorporate documents and media articles. This study uses semiotic analyses to analyze narrative texts which contained in APP sustainability report. The data obtained were analyzed by using description and interpretation. The analyzed data is 2005-2009 APP sustainability report. APP’s sustainability report is obtained by downloading it at company’s website, which is www.asiapulppaper.com. This study concluded that APP compasses on Global Reporting Initiative Guidelines in reporting its sustainability performance. This study claims that generally APP has conducted the disclosure standard required by Global Reporting Initiative. This study reviewed local and global news media articlesfor over six years (subsequent to the incidents) to understand whether ornot APP’s environmental disclosure initiatives were associated with the media attention pertaining toits environmental incidents in Indonesia. The study also suggest that APP’s environmental disclosure was associated with the public pressures as measured by media news coverage towards the APP’s incidents. The motivation of firms in conducting environmental disclosure practices is to apply the principles of Global Reporting Initiative, meet the expectations of stakeholders, gain legitimacy, and environemental dislosure practices based on company vision, mission and its sustainability targets