Japan investment and Indonesia sustainability reporting: an isomorphism perspective

Abstract

Purpose

The purpose of this study is to detect focal issues in sustainability reports in two different Asian countries based on the operating sustainability reporting law and regulations and to explore possible changes in laws and regulations because of investment interactions between the two countries.

Design/methodology/approach

This paper provides a descriptive literature review on laws and regulations related to sustainability reporting in Japan and Indonesia followed by an interpretive approach in the analysis.

Findings

Laws and regulations in Japan can lead to focus on the environmental aspect of sustainability. Laws and regulations in Indonesia can lead to variations in all aspects of sustainability reporting. All types of institutional isomorphism are possible investment system pressures.

Practical implications

This paper redefines issues in sustainability reporting based on the reporting environment created by laws and regulations in Japan and Indonesia.

Originality/value

This study assists researchers and investment analysts in understanding inherent reporting issues because of laws and regulations in both countries, and it expands existing theory for voluntary and mandatory reporting interaction studies.

Citation

Fitriasari, D. and Kawahara, N. (2018), "Japan investment and Indonesia sustainability reporting: an isomorphism perspective", Social Responsibility Journal, Vol. 14 No. 4, pp. 859-874. https://doi.org/10.1108/SRJ-04-2017-0062