Exploration of Sustainability Accounting Practices in Small and Medium Enterprises in Bali Province, Indonesia
1Partiwi DWI Astuti, 2Ni Putu Riasning, 3Luh Kade Datrini, 4I Nyoman Sunarta
1,2,3Department of Accounting, Faculty of Economics and Business, Universitas Warmadewa, Denpasar, Indonesia
4Department of Accounting, Faculty of Economics and Business, Universitas Pendidikan Nasional, Denpasar, Indonesia
https://doi.org/10.47191/jefms/v6-i11-44
ABSTRACT:
This research aims to explore sustainability accounting practices in small and medium enterprises (SMEs) in Bali Province, Indonesia. Exploration of these practices is seen from the perspective of institutional issues, regulatory environment, social issues and environmental issues. The research sample was 397 SMEs in Bali Province, Indonesia selected using simple random sampling. Questionnaires were sent to SMEs (CEO/director/financial manager/accounting). Analysis was carried out using descriptive statistics with SPSS 25 software. Research findings show that awareness of sustainability reporting among SMEs in Bali Province is still low. SMEs have not published sustainability reports, despite being very reactive in accepting and introducing sustainability measures. The biggest obstacle to implementing sustainability accounting practices is a lack of understanding or information about the risks/benefits of sustainability. This research provides implications for the need to educate SMEs with sustainability knowledge and create a new approach to sustainability reporting, specifically developed for SMEs according to the organizational context. This research has limitations because it was only conducted in the context of a developing country, in Bali Province, Indonesia, thereby limiting the understanding of sustainability accounting practices in SMEs. This study used a limited sample with a usable response rate of 17.94% which limits the findings of this study. This research contributes to the sustainability accounting literature by diagnosing gaps related to sustainability reporting practices in SMEs. This research is the first attempt to explore sustainability accounting practices in the context of developing countries, especially SMEs in Bali Province, Indonesia.
KEYWORDS:
Sustainability, Accounting, Small and Medium Enterprises, Bali Province
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