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International Journal of Environment and Sustainability, 2016, 5(1): 76-85 77
environment. Mining activity can affect the envi- impact so that it will be able to make strategic
ronment around the mining location. In order to plans and management decisions making which
minimize and control the negative effects of min- appropriate if in the financial report stated the
ing activity, it is necessary to conduct environ- accounts which is related to environment. Some
mental management that includes a concerted previous research empirically proved that there
effort in the utilization, structuring, mainte- is a positive role between implementation of
nance, monitoring, controlling and development green accounting and companies’ financial per-
of environmental, which has been set in Indone- formance. When companies implement green ac-
sia’s statement of financial accounting standards counting and can show a better environmental
number 33 (PSAK 33) about mining accounting. performance, they have better financial perfor-
mance. This has been proven by research that
Gray (1993) explained that environmental dis- shows the financial performance, in this case
closure is part of a financial report. That research market value from the companies, is greatly in-
also explained that there were many researchers fluenced by environmental performance, and the
that further investigated social information that influence is positive. The relationship between
was produced by the company and found that environmental performance and financial per-
environmental information was one aspect of formance can be seen from the income and cost
that information. Furthermore, Gray stated that perspectives.
environmental disclosure is the important part
of a company’s financial report. Research about environmental performance and
the quality of environmental disclosure has been
In Indonesia, there is a regulation that controls done by Lindrianasari (2007). The results
responsibility and the environment. Based on showed that companies will only give infor-
Government regulation section 74 Constitution mation when they have good information. Be-
Limited liability company Number 40/2007, sides that, to provide environmental disclosure
every company must reveal information about and to improve environmental quality, many
environmental disclosure that is supported by companies in Indonesia do not get motivation
Indonesia’s statement of financial accounting from companies’ economic performance. Mehen-
standards number 33 (PSAK 33), which controls a and Vernon (2004) described green accounting
companies’ from the mining sector responsibil- as an expansion path that deals with environ-
ity to report environmental items in their finan- mental performance and the integration of
cial report. The regulation is supported by legiti- environmental policy with business policy. The
macy theory, which supports social norms for business firm’s strategy includes responding to
environmental disclosure. capital and operating costs of pollution control
equipment. This is caused by increasing public
In this research, the environmental disclosure concerns over environmental issues and by the
that is going to be investigated is the activity of recent government trend toward incentive-
environmental management based on PSAK 33, based regulation. Furthermore, they found that
which is about stripping, environmental man- the environmental component of the business
agement because of exploration and evaluation strategy, producing the required performance
and environmental management because of pro- reports and recognizing the multiple skills
duction. Pava and Krausz (1996) explained that required to measure, compile and analyze the
information that is revealed by companies will requisite data.
not cause them to lose their stakeholders. The
companies that show their social responsibility Based on the information above, it can be said
prove that they have better performance than that environmental cost disclosure shows busi-
others who do not show their social responsibil- ness etiquette and proves that environment re-
ity. source management is being handled responsi-
bly. This improves social trust from the stake-
There is undoubtedly a relationship between the holders like society and consumers, which, in the
environment and economics. Recently, green ac- end, improves financial performance, like
counting has gotten serious attention in relating
activity of the companies with environmental
Science Target Inc. www.sciencetarget.com
