Transforming corporate governance: Excellence in human resources and environment in Indonesia

Abstract

Orientation: The orientation of this research is how human resources are integrated into good corporate governance practices to achieve sustainability practices. This research also explores the role of accounting in the context of Indonesian political economy in supporting corporate sustainability and accountability.

Research purpose: To analyse the role of human resources in the transformation of good corporate governance towards sustainability practices through the perspective of political economy of accounting in Indonesia.

Motivation for the study: Understanding the integration of human resources in corporate governance to improve sustainability practices, especially in the context of the political economy of accounting in Indonesia.

Research approach/design and methods: Qualitative research approach with interpretivism paradigm. The participants of this study consisted of stakeholders, top management, human resource managers and accounting managers (N = 30). Data were analysed using thematic analysis.

Main findings: The main findings of this study are that the integration of human resources in good corporate governance significantly improves environmental performance. Companies that implement accounting practices based on political economy accounting in the Indonesian context tend to be more transparent and accountable in their environmental reporting. Employee involvement contributes to an organisational culture that supports sustainability practices.

Practical/managerial implications: This study emphasises the importance of companies investing in human resource development and implementing good governance practices based on political economy accounting in the Indonesian context to achieve sustainability practices.

Contribution/value-add: Provides new insights into the integration of human resources into corporate governance that drives sustainability practices.