Lean and sustainable construction: Link between the sustainability report disclosure and the impact on profitable opportunities for investors

Abstract

Lean management in the construction sector is a company-driven movement to gain various advantages in running the business process. By implementing lean management, the company is simultaneously able to achieve multiple goals, such as profit maximization, while being able to eliminate non-value added activities and improve its environmental and social performance. To communicate these activities, the company issues a sustainability report, whose quality of disclosure depends on what the company has done with its business processes. This study tries to examine whether the quality of disclosures in sustainability reports has been able to contribute to influencing the number of earnings per share, which in this case is essential information for investors to see opportunities for profitability. The findings of this study indicate that, overall, disclosures in sustainability reports have not been a critical reference for investors, especially in looking at their profitability opportunities, and they only position this sustainability report as an additional source of information to ensure their concerns about social and environmental responsibility. The implication of this research for the development of sustainable construction is that it functions as a note to increase stakeholder engagement, especially investors, so that they appreciate the efforts of management to achieve competitive advantages and not only profit oriented.