Articles

Identifying Environmental, Social, and Governance (ESG) Implementation towards Growth and Sustainability: A Case Study at Assisted Micro, Small, and Medium Enterprise (MSME) by Bank Indonesia

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As one of the financial institutions in Indonesia which also has important role in determining the direction of Indonesia Economy, Bank Indonesia currently already assist 1.143 MSMEs within several sectors. Previously known that approximately 59,1% of total assisted MSMEs are dominantly still not adapting the environmentally friendly practice into their business. With the requirement of Environmental, Social, Governance (ESG) implementation within every organization as well as enterprises become necessary since already stated in the provision POJK No. 51/POJK.03/2017. Whereas Environmental is one of the elements on ESG itself. Through the ESG implementation particularly for enterprises, it offers added-value for the business itself. Not only added-value, ESG implementation could also lead to the growth and sustainability which also become important for the enterprises. The research aims to provide portrait/mapping the condition of assisted MSMEs based on ESG elements. Through the literature review, author enrich the rubrication measurement tool of assisted MSMEs with the ESG standard that already used internationally i.e. Sustainable Accounting Standards Board (SASB) and Climate Disclosure Standards Board (CDSB). all of the ESG elements have significant impact on Growth and Sustainability. The result also shown that there is one sub-indicator which comes from Social element regarding pension insurance which has high influence to the assisted MSMEs business but most of the respondent haven’t concerned about it yet. There are other items with high influence to the business but still need to be improved which are leave for employee, health facilities guarantees, diversity and stakeholder support. Other than that, since the dominant of respondent are coming from Processing Industry, the subindicator regarding guarantee for consumer health and safety need to be considered. The result of this research could be the recommendations both for Bank Indonesia and assisted MSMEs which requires special concern for ESG elements if the enterprises want to achieve growing and sustainable business ahead.

Inventory Management Practices of Micro, Small and Medium Grocery Stores in Daet, Camarines Norte

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Sourcing, storing and selling are the three very significant processes in the practice of inventory management.
These processes are the focus of assessment of this research to a group of selected MSM grocery stores in Daet, Camarines Norte. Specifically, it sought answers to the following questions: 1) What is the profile of the MSM grocery stores in Daet, Camarines
Norte in terms of length of the business operation, current capitalization; and total number of inventory management personnel? 2) What are the existing inventory management practices of grocery stores and their assessment of the level of effectiveness in terms of sourcing, storing, and selling? and, 3) Is there a significant relationship between the profile of the MSM grocery stores and the assessment of the level of effectiveness of the inventory management practices of grocery stores?
The study covered 150 respondents composed of MSM grocery stores. Descriptive-correlational method and F-test (One Factor Analysis of Variance) were used in the gathering and treatment of data. Frequency count and percentage were employed to determine the number of respondents characterized by each of the items in the profile. Weighted mean and adjectival ratings were utilized in marking the inventory management practices as well as the challenges encountered by MSM grocery stores. Pearson’s Product-Moment Correlation and the Somers’s Delta using the SPSS software was used in determining the significant relationship between the level of effectiveness of the inventory management practices of MSM grocery stores and their profile.
The findings of the study revealed that majority or 38 percent of the MSM grocery stores are already existing for 4 to 6 years with less than Php 3,000,000 current capitalization and most of them admitted that they had no particular employee assigned as inventory management personnel. The existing inventory management practices along the sourcing and storing process were all absolutely effective with ABC Classification System being the highest indicator. Moreover, findings showed that the inventory management practices for selling were 50 percent absolutely effective and 50 percent highly effective, where Enterprise Resource Planning (ERP) was the highest indicator. In the correlation analysis conducted, it was found out that the length of business operation and the level of effectiveness of inventory management practices of MSM Grocery stores along sourcing and storing are not significantly related unlike selling as an inventory management process which resulted to a significant correlation. Further, all other profiles such as current capitalization and the number of inventory management personnel have no significant relationship to the effectiveness of the inventory management practices of the respondents.