Corporate Sustainability Performance in the Indonesian Fertilizer Industry: A Strategic Approach with PT Pupuk Indonesia (Persero)
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 09
Abstract
This study investigates the determinants of Corporate Sustainability Performance (CSP) in PT Pupuk Indonesia (Persero), a leading state-owned enterprise in Indonesia's fertilizer industry. The research focuses on the impact of Environmental, Social, Governance (ESG), Operational, Leadership, and Strategic Transformation factors on CSP. Utilizing a Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach, the study reveals that Operational Performance is the most significant driver of CSP, with Governance and Social factors also playing crucial roles. However, Environmental, Leadership, and Strategic Transformation variables show limited direct influence on CSP. These findings suggest that while operational efficiency and governance are critical for enhancing sustainability, the importance of social responsibility, visionary leadership, and long-term environmental strategies should not be underestimated. The study offers strategic insights for corporate leaders, emphasizing a balanced and comprehensive approach to achieving sustainable growth in energy-intensive industries.
Authors and Affiliations
Frans B. M. Dabukke, Harianto, Bungaran Saragih, Setiadi Djohar
Keywords
Related Articles
- EP ID EP744374
- DOI 10.47191/ijsshr/v7-i09-11
- Views 49
- Downloads 0
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