摘要：There has been a remarkable attention on social and environmental accounting recently. It informs us about social and environmental impact on operating activity of a company. Traditional accounting report only includes economic information for investors and creditors’ interests. Social and environmental accounting has been developed by various organizations in many countries. Accounting standard in Indonesia has ruled it, however, there is a lack in the implementation, especially in reporting prevention and maintenance of environmental activities. To improve the implementation, there are several steps that must be done by the regulator. Firstly is to set standard of sustainability reporting (SR) and mandate the implementation for companies doing environmentally related activities. Secondly, is to mandate companies to prepare SR in accordance to the existing guidelines, such as those issued by Global Reporting Initiative (GRI). Thirdly, is to award companies that have been implemented SR. Fourthly, is to conduct environmental audit to improve credibility of SR. Finally, is to develop GCG mechanism to protect the interests of all stakeholders.
