Sustainability Reporting Guideline for Small Medium Enterprises (SMEs): Case Study from 25 SMEs in Indonesia

Abstract

The sustainability reporting trend has been increasing in Indonesia for the past few years, with the government’s plan to make sustainability reporting mandatory for all companies, including Small and Medium-sized Enterprises (SMEs) that have significant impacts on national economics. So far, there are no specific guidelines for SME’s sustainability report. There are many indicators in the global sustainability reporting guidelines that are not suitable for SMEs since they are limited in the resources and knowledge they can disseminate. Therefore, this study aims to develop a sustainable reporting guideline for SMEs. This study analyzes the sustainable development reporting practices of Indonesia and other countries through literature review, interviews and surveys, in order to build a sustainable development reporting guide for SMEs. The reporting guidelines recommended in this study contain 25 indicators: 12 general information indicators, 1 economic indicator, 6 environmental indicators, and 6 social indicators. Based on a survey of 25 small and medium-sized enterprises, this guideline is suitable for preparing SMEs’ sustainability reports.