Institutional Pressure and the Adoption of Sustainable Development Goals (SDGs) in Mining Companies in Indonesia
DOI:
https://doi.org/10.36526/sosioedukasi.v14i4.6431Keywords:
Capital markets; Institutional theory; Mining industry; Normative pressure; SDGs; Sustainability reportingAbstract
This study uses institutional theory as the analytical framework to examine how institutional pressures affect the institutional adoption of sustainable development goals (SDGs) among mining companies in Indonesia. Through a qualitative content analysis of sustainability reports from 11 firms in three categories of ownership (state-owned enterprises, multinational corporations, and domestic private firms), this study examines different patterns of SDG integration due to coercive normative and mimetic pressures. The findings reveal that multinationals pursue the widest array of SDGs 15-16, motivated by global ESG expectations and investor demands. State-owned enterprises show moderate adoption of 10-12 goals mainly due to national regulations and the legitimacy of the public. Domestic private firms have high variability in 6-11 goals, with listed or parent-affiliated firms showing more substantive engagement than their smaller non-listed counterparts. Crucially, the research concludes that capital market affiliation, directly or indirectly, serves as a consistent normative force that increases the adoption of SDGs for all ownership types. This research contributes theoretically to the literature, showing that normative pressure from financial markets could outweigh coercive regulatory pressure in driving meaningful sustainability practices in developing economies. Practically, it provides practical insights for regulators, investors, and corporate leaders to enhance the implementation of SDGs beyond mere symbolic disclosure.
References
Abhayawansa, S., & Adams, C. (2022). Towards a conceptual framework for non-financial reporting inclusive of pandemic and climate risk reporting. Meditari Accountancy Research, 30(3), 710–738.
Adhariani, D., & Du Toit, E. (2020). Readability of sustainability reports: evidence from Indonesia. Journal of Accounting in Emerging Economies, 10(4), 621–636.
Andrades, J., Martinez-Martinez, D., & Larrán, M. (2025). Sustainability reporting, institutional pressures and universities: evidence from the Spanish setting. Sustainability Accounting, Management and Policy Journal, 16(4), 1045–1071.
Bantekas, I. (2024). Multinational Business Entities and their Role in the Global Environmental, Social, and Governance Architecture. Minn. J. Int’l L., 33, 49.
Berrone, P., Rousseau, H. E., Ricart, J. E., Brito, E., & Giuliodori, A. (2023). How can research contribute to the implementation of sustainable development goals? An interpretive review of SDG literature in management. International Journal of Management Reviews, 25(2), 318–339.
Breitmeier, H., Schwindenhammer, S., Checa, A., Manderbach, J., & Tanzer, M. (2021). Aligned sustainability understandings? Global inter-institutional arrangements and the implementation of SDG 2. Politics and Governance, 9(1), 141–151.
Carmagnac, L., Silva, M. E., & Fritz, M. M. C. (2024). Exploring sustainable development goals adoption in supply chain management: A typology of coexisting institutional logics. Business Strategy and the Environment, 33(4), 3463–3479.
Das, A. (2024). Predictive value of supply chain sustainability initiatives for ESG performance: a study of large multinationals. Multinational Business Review, 32(1), 20–40.
Ding, H., & Wang, Z. (2025). The Influence of Institutional Pressures on Environmental, Social, and Governance Responsibility Fulfillment: Insights from Chinese Listed Firms. Sustainability, 17(9), 3982.
Donnini, C., & Sacco, A. (2024). Social equity in international environmental agreements. Journal of Global Optimization, 90(1), 261–291.
Fourati, A., Zenaidi, A., & Jeriji, M. (2025). Like Parent, Like Subsidiary? On the Diffusion of Sustainability Reporting in Multinational Companies. Corporate Social Responsibility and Environmental Management, 32(3), 3210–3226.
Gold, N. O., Taib, F. M., & Ma, Y. (2022). Firm-level attributes, industry-specific factors, stakeholder pressure, and country-level attributes: global evidence of what inspires corporate sustainability practices and performance. Sustainability, 14(20), 13222.
Ike, M., Donovan, J. D., Topple, C., & Masli, E. K. (2019). The process of selecting and prioritising corporate sustainability issues: Insights for achieving the Sustainable Development Goals. Journal of Cleaner Production, 236, 117661.
Khaled, R., Ali, H., & Mohamed, E. K. A. (2021). The Sustainable Development Goals and corporate sustainability performance: Mapping, extent and determinants. Journal of Cleaner Production, 311, 127599.
Kücükgül, E., Cerin, P., & Liu, Y. (2022). Enhancing the value of corporate sustainability: An approach for aligning multiple SDGs guides on reporting. Journal of Cleaner Production, 333, 130005.
Lashitew, A. A. (2021). Corporate uptake of the Sustainable Development Goals: Mere greenwashing or an advent of institutional change? Journal of International Business Policy, 4(1), 184–200.
Lyytimäki, J., Eckert, N., Lepenies, R., Mosoni, C., Mustajoki, J., & Pedersen, A. B. (2023). Assuming accuracy, pretending influence? Risks of measuring, monitoring and reporting sustainable development goals. Ambio, 52(4), 702–710.
Mahmood, Z., & Uddin, S. (2021). Institutional logics and practice variations in sustainability reporting: evidence from an emerging field. Accounting, Auditing & Accountability Journal, 34(5), 1163–1189.
Nastiti, K., & Bayangkara, I. B. K. (2024). PENYUSUNAN LAPORAN KEBERLANJUTAN BERDASARKAN PERATURAN OTORITAS JASA KEUANGAN NO. 51 TAHUN 2017 PADA PT. BPR SURYA ARTHA UTAMA PERSERODA SURABAYA. GOVERNANCE: Jurnal Ilmiah Kajian Politik Lokal Dan Pembangunan, 11(1).
Ngo, T., Le, T., Ullah, S., & Trinh, H. H. (2023). Climate risk disclosures and global sustainability initiatives: A conceptual analysis and agenda for future research. Business Strategy and the Environment, 32(6), 3705–3720.
Putri, I. G. A. M. A. D., Sari, K., Hasibuan, H. T., Ardiana, P. A., Yanthi, K. D. L., Pradnyani, N. W. A., & Sujana, N. W. K. J. P. (2025). Institutional dynamics and environmental disclosures: insights from Indonesia’s energy sector. Pacific Accounting Review.
Rageth, L., Caves, K. M., & Renold, U. (2021). Operationalizing institutions: a theoretical framework and methodological approach for assessing the robustness of social institutions. International Review of Sociology, 31(3), 507–535.
Risi, D., Vigneau, L., Bohn, S., & Wickert, C. (2023). Institutional theory‐based research on corporate social responsibility: Bringing values back in. International Journal of Management Reviews, 25(1), 3–23.
Schriger, S. H., Binagwaho, A., Keetile, M., Kerry, V., Mubiligi, J. M., Ramogola-Masire, D., Roland, M., Barg, F. K., & Cancedda, C. (2021). Hierarchy of qualities in global health partnerships: a path towards equity and sustainability. BMJ Global Health, 6(12).
Whitelock, V. G. (2019). Multidimensional environmental social governance sustainability framework: Integration, using a purchasing, operations, and supply chain management context. Sustainable Development, 27(5), 923–931.
.png)
