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.

Transforming NGO Projects into Social Enterprise

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Introduction: Non-Government Organization (NGO) is Non-Profit Organization founded to create social impact without looking for profit. NGOs are generally funded through charitable donations, however, many of those sources of funds have dried up. For sustainability, NGOs need to find ways to enhance their sustainability, diversify their income source and become less dependent on donors. This research will study Global Peace Foundation Indonesia using Gap Analysis to find how to transform an NGO into a Social Enterprise and the innovation of the business model needed.

Literature Review: This research benchmarks Fowler’s steps of social enterprise, Ann Mei Chang’s hybrid organization, and Burkett’s social business model.

Research Methodology: This research collects primary and secondary data through interviews, FGD, and desk research. The data obtained data from the collection methods will be processed and analyzed with a qualitative approach: logic model, PESTEL Analysis, and SWOT Analysis.

Result and Discussion: From the logic model of Global Peace Foundation Indonesia, can be seen that some projects can potentially be transformed into a social enterprise, and the nearest industry to those projects are Tourism Industry. Continuing the logic model analysis, PESTEL Analysis was done, and the result showed some positive opportunity in the tourism industry that relate to what Global Peace Foundation Indonesia value. As there’s a positive opportunity, SWOT Analysis was used to find the strategies to implement. Those Analyses were used to produce the Value Proposition Canvas and Social Business Model of Global Peace Foundation Indonesia.

Conclusion and Recommendation: Fowler’s steps of Social Enterprise are slightly different from the transforming steps of Global Peace Foundation Indonesia. This research can be used by other field affiliates of the Global Peace Foundation and other NGOs who want to transform into social enterprises too. Future research can focus on the assigning human resource and leadership to the transformation process.

Repair, Reused and Recycle as a New Business Model for Furniture Enterprise in Indonesia to Support Sustainability Program: Case of Oo-Furni Furniture Enterprise.

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This research aims to study about the condition of furniture business on MSME (Micro Small Medium Enterprise) in Indonesia by case study is Oo-Furni as knowledge to build the correct strategy for new business which has decreased the sales trend due to tough competition. Furthermore, the furniture industry in Indonesia has problem with sustainability which is related to environmental. The two problem issues are decrement the availability of raw material and waste from furniture used. The analysis has conducted in this research with internal analysis and external analysis. The internal analysis was consisting of the sales trend, general capital & profit data and SWOT. The external analysis was consisting of customer perceptions, porter five forces, PESTEL. The data has been retrieved from primary data and secondary data. The analysis results   have been followed up by Business Model Canvas to build new business model and the marketing mix strategy. The recommendation for new business model to growth and survive over long time was repair, reused and recycle.  The new marketing strategy for new business model was developed to increase the sales of Oo-Furni.

Influence of Management Commitment in the Implementation of Hotel Environmental Management Practices and its Effect on Business Sustainability among Hotels in Tanzania

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This study aimed to assess the influence of management commitment in the implementation of hotel environmental management practices and its effect on business sustainability among hotels in Tanzania. Studies have shown that management commitment plays a significant role in the implementation of hotel Environmental Management Practices (EMPs). Based on that argument, two hypotheses were formulated as follows; Firstly, Management commitment influences the implementation of environmental management practices. Secondly, Implementation of environment practices have effects on hotel business sustainability. The study was conducted in two cities namely: Arusha and Dar es Salaam whereby a structured questionnaire with Likert scale range from 1 to 5 was used to collect information from the sample of 400 managers and supervisors of hotels.   SPSS software was used for data entry and AMOS software version 23 was used to analyze multivariate analysis and Structural Equation Modeling (SEM) was used to test the hypotheses. The findings indicated that both hypotheses were accepted that is, Management commitment has a positive influence on the implementation of the EMPs with highly significant at p<0.000. Also, the implementation of EMPs has a positive effect on hotel business sustainability strongly significant p<0.000. Therefore, the implications to industry managers and expertise are: first, hotel managers’ commitment plays a pivotal role in the EMPs implementation. Second, the implementation of EMPs in hotels serves as a vehicle in achieving hotel business sustainability. This contributes to a body of knowledge by showing that an environmental factor is a major external component that affects business sustainability in organizations like hotels. Moreover, the study has enlightened that, a hotel manager stands a strategic role in managing the organization based morals and values that address the interest of a bigger segment of its stakeholders. The study recommends future research on further study of water conservation especially on reducing water for showering and bathtubs. It was concluded that commitment of hotel managers in the implementation of EMP plays a pivot role in the sustainability of hotel business in Tanzania.

Vermicomposting in Silver Oak Plantation Areas for Sustainable Waste Management and Enhanced Livelihood: A Case Study of Kolli Hills, Tamil Nadu, India

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Silver Oak plantation on farmlands growing coffee and black pepper has gained importance in recent times in the areas surrounding the Kolli hills in the Namakkal district of Tamil Nadu, India. The Silver Oak trees shed significant quantities of dry leaves during the summer season which the local Malayali tribal community burns and/or leaves on ground. The current case study is based on an experiment of vermicomposting using local Silver Oak leaf litter, cow dung and earthworms. The results show that joint production of manure from agroforestry practices is an option in self-sufficiency for the rural communities and has the potential for a business model. Moreover, this ensures environmental sustainability by avoiding green-house gas emissions that are caused by the practice of burning leaves and/or leaving the mulch to rot. The present paper attempts to develop a sustainable model of vermicomposting in the Kolli hills region that can offer triple solutions encompassing organic manure production, environmental quality improvement and livelihood opportunity enhancement. Based on field surveys and physiochemical experiments in the Perungiraipatti village of the Kolli hills, the study presents a sustainable model of vermicomposting with specifications on nutritional quality, environmental sustainability and economic development. 

Application of the Delayed Royalty Framework for Onshore Petroleum Investment in Nigeria Using the 1993 Production Sharing Contract

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The 1993 production sharing contract (PSC) in Nigeria specifies different royalty rates for oil and gas investment. The royalty rates were fixed. This makes the fiscal arrangement to be regressive in nature. Royalty rate of 20% is to be paid for onshore investment using the 1993 PSC. Hence, there is a need to make the fiscal arrangement progressive. The delayed royalty framework was incorporated into the1993 PSC as a progressive measure to make it dynamic. Two economic models were developed using spreadsheet technique to evaluate the impact of the delayed royalty framework on onshore petroleum investment. The 1993 PSC fiscal framework was used to develop the economic models. The delayed royalty framework was incorporated into one of the models. The delay in royalty payment hinged on the payout period of the investment. It was observed that the delayed royalty framework increased the contractor’s revenue during the period of low oil price. Thus, increasing the sustainability of the investment during period of low oil price.

Recent Trends in Sustainable Textiles and Apparel Production

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Human life is sustainable with food, cloth, and shelter as a basic need. The global textile industry is bound to be huge, as it fulfills the second basic requirement of human. In recent years ecological issues have become more important in the textile and apparel industry, an industry known as a polluting industry despite having a natural and environmentally friendly base. Every textile item releases toxic substances that are harmful to the environment. The traditional textile industry consumes large amounts of natural resources and pollutes the environment by involving a huge amount of toxic chemical substances during the production and wet treatment processes. Sustainability has become an essential attribute of today’s textile industry. The process of transforming the textile industry into a more sustainable one is very sensitive, needs a lot of knowledge, skills, and commitment. This paper reviews the importance, recent trends, and role of governing bodies in sustainable textile production.