Beyond profit: How to create value in business by integrating ESG and sustainability accounting

Authors

  • Musviyanti Musviyanti Mulawarman University, Samarinda, East Kalimantan, Indonesia
  • Muhammad Abadan Syakura Mulawarman University, Samarinda, East Kalimantan, Indonesia
  • Muhammad Harits Zidni Khatib Ramadhani Mulawarman University, Samarinda, East Kalimantan, Indonesia

DOI:

https://doi.org/10.14414/tiar.v14i2.4765

Keywords:

ESG investment, Sustainability accounting, Green value

Abstract

This study aims to explore the integration of Environmental, Social, and Governance (ESG) investment with sustainable accounting practices to achieve the Sustainable Development Goals (SDGs) in order to instill important values in sustainable busi-ness. This study is a qualitative study using a case study method at PT Pupuk Kali-mantan Timur (PKT) and its subsidiary, PT Kaltim Industrial Estate (KIE). Data collection was conducted through in-depth interviews. The findings of this study reveal that a proactive approach to ESG adoption is a strategic corporate initiative that emphasizes corporate governance compliance with government regulations, ethical business practices, and fraud prevention. In addition, this study explores insights into the decision-making process related to ESG projects through budget considera-tions for ESG implementation. The results of this study also indicate that there is an important role for management in adopting ESG practices as a company’s commitment to long-term environmental management. The implications of this study are for sustainable development, especially in the fertilizer industry, through the role of an integrated ESG strategy that will ultimately increase corporate profitability, preserve the environment and support the improvement of community welfare. This research contributes to the practical development of sustainability accounting on how industries can integrate sustainable business with environmental responsibility through ESG initiatives to achieve the SDGs.

Author Biographies

Musviyanti Musviyanti, Mulawarman University, Samarinda, East Kalimantan, Indonesia

Musviyanti is a lecturer in the Faculty of Economics and Business at Mulawarman University,
Samarinda, Kalimantan Timur, Indonesia. She earned a bachelor of economy (2003) in
Accounting at Faculty of Economics and Business, Mulawarman University Samarinda and her
master of economy (2006) in local financial at Faculty of Economics and Business, Mulawarman
University Samarinda. She also earned her doctoral of economy (2012) from Hasanuddin
University Makassar. Her current research mainly focused on sustainability accounting, financial
accounting, public financial management , management of investment, and syariah accounting.
She has published academic articles in the Journal of Public and Municipal Finance, Journal
Corporate Governance and Organizational Behavior Review, dan Journal of Governance and
Regulation, and INOVASI: Jurnal Ekonomi, Keuangan, dan Manajemen. Author’s contact detail:
Faculty of Economics and Business; Universitas Mulawarman; Jl. Tanah Grogot No.1,Kampus
Gn Kelua, Samarinda Indonesia; +628125505809; musviyanti@feb.unmul.ac.id

Muhammad Abadan Syakura, Mulawarman University, Samarinda, East Kalimantan, Indonesia

Muhammad Abadan Syakura is a lecturer in the Faculty of Economics and Business at
Mulawarman University, Samarinda, Kalimantan Timur, Indonesia. He earned a bachelor of
economy (2012) in Accounting at Sekolah Tinggi Ilmu Ekonomi (STIE) Malangkucecwara
Malang and his Master of Science (2014) in Accounting at Faculty of Economics and Business,
Brawijaya University Malang. His current research mainly focused on taxation, sustainability
accounting, management accounting, and entrepreneurship. He has published academic
articles in the Journal of Public and Municipal Finance, Jurnal Akuntansi Multiparadigma, Jurnal
Akuntabel, International Journal of Multidisciplinary Research and Publications, and The
International Journal of Accounting and Business Society. Author’s contact detail: Faculty of
Economics and Business; Universitas Mulawarman; Jl. Tanah Grogot No.1,Kampus Gn Kelua,
Samarinda Indonesia; +6285329469908; muhammad.abadan.syakura@feb.unmul.ac.id

Muhammad Harits Zidni Khatib Ramadhani, Mulawarman University, Samarinda, East Kalimantan, Indonesia

Muhammad Harits Zidni Khatib Ramadhani is a lecturer in the Faculty of Economics and Business at Mulawarman University, Samarinda, Kalimantan Timur, Indonesia. He earned a bachelor of economy (2011) in Accounting and also his Master of Science (2014) in Accounting at STIE YKPN Yogyakarta. His current research mainly focused on local accounting, sustainability accounting, banking, and entrepreneurship. He has published academic articles in the Journal of Risk and Financial Management, Jurnal Ekonomi, Akuntansi & Manajemen, The Es Economics and Entrepreneurship, International Journal of Multidisciplinary Research and Publications, and Journal of Business and Economics. Author’s contact detail: Faculty of Economics and Business; Universitas Mulawarman; Jl. Tanah Grogot No.1,Kampus Gn Kelua,
Samarinda Indonesia; +6285399997717; harits.zidni@gmail.com

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Submitted

2024-09-28

Published

2025-08-08

How to Cite

Beyond profit: How to create value in business by integrating ESG and sustainability accounting. (2025). The Indonesian Accounting Review, 14(2), 289-300. https://doi.org/10.14414/tiar.v14i2.4765

Issue

Vol. 14 No. 2 (2024): July - December 2024

Section

Articles

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How to Cite

Beyond profit: How to create value in business by integrating ESG and sustainability accounting. (2025). The Indonesian Accounting Review, 14(2), 289-300. https://doi.org/10.14414/tiar.v14i2.4765