Track: Sustainability and Green Systems

Abstract

 This study aims to examine the existence of greenwashing practices in Indonesia by examining whether banking companies listed on the IDX conduct Corporate Social Responsibility (CSR) activities for sustainability development or only as greenwashing activities.The research method used purposive sampling and the observations were carried out for six years. This study used descriptive statistics as the basis for processing data. The population in this study was banking companies listed on the IDX. The focus of this study is on the accounts presented in the position statements to assess CSR activities, not on the statements presented in the annual financial statements.  The sustainability reporting (SR) policy has a two-sided meaning. First, reporting will encourage companies to be oriented towards sustainability. Second, the critical side, is the use of SR for legitimate media, which does not describe the actual performance or is often referred to as the greenwashing phenomenon. The contribution of this study is to prove and measure greenwashing practices in Indonesia. Thus, we know the presence of greenwashing and its measurement.  The results of this study would also strengthen the argument, of whether signaling theory or legitimacy theory is more appropriate for the Indonesian context