scholarly journals Zero Waste Accounting for Islamic Financial Institutions in Indonesia and Its Role in Achieving Sustainable Development Goals

ETIKONOMI ◽  
2020 ◽  
Vol 19 (2) ◽  
Author(s):  
Yaser Taufik Syamlan ◽  
Murniati Mukhlisin
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Sustainable Development Goals ◽  
Financial Institution ◽  
Accounting Standard ◽  
Zero Waste ◽  
Islamic Financial Institutions ◽  
Development Goals ◽  
Interpretative Approach

This study aims to propose a model of Zero Waste Accounting in Islamic Financial Institutions in Indonesia and how it is relevant to the achievement of Sustainable Development Goals (SDGs).  Due to the nature of the research that is exploration thus the research adopts interpretative approach that is essential to validate the research with “convincingness” approach rather than positivist measures of the reliability, validity of data and the generalization of results. The finding documents that Zero Waste Accounting is in vein with the spirit of Maqashid ul-Shariah that has been embedded as a part of the purpose of Islamic financial institution establishment. Statement of Sources and Uses of Zero Waste Accounting should become one of the additional disclosures. The paper sheds a light the need on Zero Waste Accounting for the accounting standard setters.JEL Classification: G20, G52, Q56How to Cite:Syamlan, Y. T., & Mukhlisin, M. (2020). Zero Waste Accounting in Islamic Financial Institutions in Indonesia and Its Role in Achieving Sustainable Development Goals. Etikonomi: Jurnal Ekonomi, 19(2), xx – xx. https://doi.org/10.15408/etk.v19i2.15538.

scholarly journals Financial Institutions’ Risk Profile and Contribution to the Sustainable Development Goals

2021 ◽  
Vol 13 (14) ◽  
pp. 7738
Author(s):  
Nicolás Gambetta ◽  
Fernando Azcárate-Llanes ◽  
Laura Sierra-García ◽  
María Antonia García-Benau
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Sustainable Development Goals ◽  
Sustainability Reporting ◽  
Risk Profile ◽  
The Sustainable Development ◽  
Corporate Reporting ◽  
2030 Agenda ◽  
Development Goals ◽  
The Impact

This study analyses the impact of Spanish financial institutions’ risk profile on their contribution to the 2030 Agenda. Financial institutions play a significant role in ensuring financial inclusion and sustainable economic growth and usually incorporate environmental and social considerations into their risk management systems. The results show that financial institutions with less capital risk, with lower management efficiency and with higher market risk usually make higher contributions to the Sustainable Development Goals (SDGs), according to their sustainability reports. The novel aspect of the present study is that it identifies the risk profile of financial institutions that incorporate sustainability into their business operations and measure the impact generated in the environment and in society. The study findings have important implications for shareholders, investors and analysts, according to the view that sustainability reporting is a vehicle that financial institutions use to express their commitment to the 2030 Agenda and to higher quality corporate reporting.

scholarly journals Formation of Financial Statements at Islamic Financial Institutions

2018 ◽  
pp. 128-132
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Financial Institution ◽  
Financial Statements ◽  
Financial Accounting ◽  
Accounting Standard ◽  
Charitable Foundations ◽  
Islamic Financial Institutions ◽  
Further Development ◽  
Traditional Economy

Conceptually, the key approaches to the formation of financial reporting for an Islamic financial institution (IFI) have much in common with approaches developed for economic entities in the traditional economy. At the same time, the AAOIFI Concept and the Financial Accounting Standard No. (1) provide for Islamic financial institution-specific provisions and reporting forms that reflect the requirements of the Sharia. Disclosure of methods in published accounts is intended to help its users distinguish between changes in the financial position of an Islamic financial institution, the results of its operations, cash flow, limited investment managed by it, the sources and use of Zakat (poor-due) and Kard funds and charitable foundations. Further development of the regulation of the issues on the formation of financial statements seems to us in the making common approaches to its formation closer for companies operating in the traditional economy and Islamic financial institutions.

Ambitious UN global goals may falter in execution

2015 ◽  
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Millennium Development Goals ◽  
Sustainable Development Goals ◽  
Member States ◽  
Content Type ◽  
The Sustainable Development ◽  
Development Goals

Subject An assessment of the prospects for the SDGs Significance UN member states on September 25 ratified a new set of global benchmarks, the Sustainable Development Goals (SDGs), following the expiry of the Millennium Development Goals (MDGs) this year. The 17 new goals, with 114 outcome targets, have already drawn criticism for being overly ambitious and lacking direction. Impacts The UN's Paris Climate Talks (COP21) later this year will be heavily influenced by the number of climate goals set out in the new SDGs. NGOs will alter policies to align with the SDG agenda, soliciting funds to broaden programmes beyond the MDG-focus of the last 15 years. Governments and NGOs will increasingly ask international businesses and financial institutions to collaborate on achieving the SDGs.

Between cost and value

2019 ◽  
Vol 20 (4) ◽  
pp. 481-496 ◽  
Author(s):  
Amina Buallay
Keyword(s):  
Sustainable Development ◽  
Financial Institutions ◽  
Business Performance ◽  
Sustainable Development Goals ◽  
Market Performance ◽  
Sustainability Reporting ◽  
Firm Level ◽  
Content Type ◽  
Country Level ◽  
Development Goals

Purpose There are wide debates about the costs and benefits of sustainability reporting. The purpose of this paper is to investigate the relationship between sustainability reporting and a firm’s financial, operational and market performance in order to determine when sustainability reporting benefits a firm and when it adds cost. Design/methodology/approach This study examined 342 financial institutions within the 20 countries that top the list of achievers of sustainable development goals for the 10 years 2007 through 2016, for a total of 3,420 observations. The independent variable is the environmental, social and governance (ESG) score; the dependent variables are performance indicators (return on assets, return on equity and Tobin’s Q). Two types of control variables are used in this study: firm level and country level. Findings The findings deduced from the empirical results demonstrate that, on the one hand, ESG positively affects market performance, which supports value creation theory. On the other hand, ESG negatively affects financial and operational performance, which supports cost-of-capital reduction theory. Research limitations/implications This study aims to find how sustainable disclosure can and does play a role in contributing towards performance of financial institutions to eventually achieve country’s sustainable development goals. Practical implications The study provides insights into the effect of sustainability reporting on different perspectives of business performance, which might be utilised by financial institutions to re-arrange their disclosure policy to be aligned with their strategy. Originality/value This study sheds light on the rare prior studies that relate sustainability reporting to indicators of business performance (operational, financial and market).

scholarly journals Corporate citizenship, stakeholder management and Sustainable Development Goals (SDGs) in financial institutions and capital markets

2020 ◽  
Vol 4 (1) ◽  
pp. 47-59
Author(s):  
Jacob Dahl Rendtorff
Keyword(s):  
Sustainable Development ◽  
Business Ethics ◽  
Financial Institutions ◽  
Capital Markets ◽  
Sustainable Development Goals ◽  
Stakeholder Management ◽  
Corporate Citizenship ◽  
Business And Society ◽  
Content Type ◽  
Development Goals

PurposeThe aim of this theoretical and conceptual research paper is to give a definition of the concept of corporate citizenship, which together with business ethics and stakeholder management function as foundation of a vision of the UN Sustainable Development Goals (SDGs) for financial institutions and capital markets.Design/methodology/approachThis paper is based on a conceptual methodology which analyzes the main aspects of corporate citizenship with regard stakeholder management and the UN SDGs. In particular there is focus on stakeholder justice, integrity and fairness with regard to stakeholder responsibility at capital markets.FindingsThis paper suggests that concepts of corporate citizenship, business ethics, stakeholder justice, integrity and fairness, as well as stakeholder responsibility must be conceived as the basis for an acceptable vision of sustainable development at capital markets.Research limitations/implicationsThis paper is a theoretical paper so the paper is limited to the presentation of major concepts from the point of view of business ethics, stakeholder management and SDGs. This is a framework that needs to be developed in specific research and investment practice at capital markets.Practical implicationsThis paper provides the basis for developing a good vision of SDGs in financial institutions and capital markets and it demonstrates that the SDGs must be developed as the foundation of ethics of investments and capital markets.Social implicationsWith suggestions of visions of corporate citizenship, business ethics and stakeholder management this paper situates the firm in a social context as a social actor in the context of sustainable development. The business firm is therefore integrated in society and there is a close connection between business and society which needs to be developed in codes and values of ethics of financial institutions capital markets.Originality/valueThe originality and value of this paper is a conceptual formulation of the relation between the concepts of corporate citizenship, business ethics, stakeholder management and SDGs in financial markets. With this the paper refers to earlier research and summarizes concepts from this in a short synthesis.

Material ESG Outcomes and SDG Externalities: Evaluating the Health Care Sector’s Contribution to the SDGs

2020 ◽  
Vol 33 (4) ◽  
pp. 511-533
Author(s):  
Costanza Consolandi ◽  
Himani Phadke ◽  
Jim Hawley ◽  
Robert G. Eccles
Keyword(s):  
Health Care ◽  
Resource Allocation ◽  
Sustainable Development ◽  
Public Sector ◽  
Sustainable Development Goals ◽  
Well Being ◽  
Data Set ◽  
Accounting Standard ◽  
Development Goals ◽  
Health And Well Being

The 17 UN Sustainable Development Goals (SDGs) have created a framework for environmental and social impacts, which institutional investors and corporations are using to guide resource allocation or highlight SDG-aligned investments already in place. We argue that the SDGs have clarified certain elements predominantly missing or implicit in many environmental, social, and governance (ESG) standards, specifically focusing on companies’ E and S externalities. Methodologically, we analyze how health care companies contribute to SDG 3 on health and well-being as a case, mapping the goal’s targets to the Sustainability Accounting Standard Board’s (SASB’s) 30 generic ESG issues and considering both financially material and immaterial ESG issues, based on SASB. Using an innovative data set, we highlight where private sector firms contribute to SDG impacts and where their financial priorities might lie. Where firms are either not contributing or perhaps unable to, we point to the need for public sector activities.

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