The companies that are included in the research are those with the following criteria:
- Not doing business in the field of nuclear, weapons, tobacco, alcohol, and Genetically Modified Organism (GMO)
Meet the following Financial Aspect:
- Market Capitalization > 1 trillion
- Rupiah, total assets > 1 trillion
- Rupiah, Positive PE Ratio
The fundamental aspects are developed from core subjects of ISO 26000, then weight is assigned for each aspect. The result is below:
- Environment: 15%
- Community Development: 15%
- Organisational Governance: 25%
- Business Behaviour & Consumer Issue: 15%
- Human Rights: 15%
- Labour Practice: 15%
The scoring in this study uses "three general concepts of disclosure" developed by Hendriksen, E, 1998, i.e:
- When indicators are not disclosed in the report, it is given a score of "0".
- When the disclosure of indicators are sufficient enough not to make the statement misleading, then it is given a score of "1".
- When the disclosure of indicators are considered fair to all potential readers, it is given score as "2".
- If the disclosure of indicators are complete (full) that present all relevant information, then it is given score of "3".
Additional and Reduction value by 5% if:
- The company practices good corporate governance (+5%)
The company practices bad corporate governance (-5%), because of, among other things:
- There is report that the company has poluted the environment, violated human rights and other aspects of sustainability.
- The Company does not fullfill its tax obligation