The Impact of Firms’ Social and Environmental Aspect towards Circular Economy Effectiveness

Abstract

The purpose of this study is to study whether the social and environmental aspects of firms’ activities may affect effectiveness of Circular Economy by using environmental management accounting (EMA) and Corporate Social Responsibility (CSR) of the firms as variables of research. A sample of Indonesian mining and property firms were chosen for the research, and the data used in this research are obtained from the firms’ annual and sustainability report. The results of the research showed that both EMA and CSR had no statistical influence towards the firms’ CE. This result shows that the implementation of EMA and CSR in Indonesian firms is insufficient in bringing out the potentials of Circular Economy and that Indonesian firms may need to increase their sustainability awareness to reach a national sustainable growth.