Page 146 - SUSTAINABILITY ISSUES & COVID-19

Jones & Murrell (2001) as cited by Moratis (2018) stated that signaling theory suggests that firms provide information
that could be employed by individuals or groups who attempt to form impressions about the organization, its
values and its overall future direction. In this regard, the Sei Kehati index (SKI) was developed as an ethical index
for SRI investors to review the performance of companies’ profitability, supported by their Environmental Social
and Governance performances (Zulkafli et al., 2017). The information of companies included in SKI is provided and
published by an institution namely Yayasan Kehati. According to Peters & Romi (2013), The appointment od SO in
a company is positively associated with sustainability performance. While SRI is the process of financial investment
which consider social, environmental and corporate governance impacts – and/or investment in the community and
shareholder activism (SIF, 2009 as cited by (Olmedo et al., 2010)). Hence, based on signaling theory the presence of
SO can provide good signal to stakeholder, in this regard, including investor. Therefore, the hypothesis in this study is:
Ha: the ISOE which employ SO will be likely to be included in Sri Kehati Index.

3. METHODS

There is 114 ISOE in 2017 (bumn.go.id), 20 of them are listed in IDX. This study employs twenty ISOE listed in IDX in 2017
as sample data. There are several step conducted in this research. Firstly, from the ISOE’s Annual Report downloaded
from companies’ websites, we look at the organizational structure. Looking for the position titles with sustainability
officer name in it, its synonym or CSR related names.

Table. 1 The List of Listed ISOE in 2017
Num Companies Type
1 ADHI - PT Adhi Karya (Persero) Tbk Konstruksi
2 ANTM - PT Aneka Tambang (Persero) Tbk Tambang
3 BBNI - PT Bank BNI (Persero) Tbk Bank

4 BBRI - PT Bank BRI (Persero) Tbk Bank
5 BBTN - PT Bank BTN (Persero) Tbk Bank
6 BMRI - PT Bank Mandiri (Persero) Tbk Bank
7 GIAA - PT Garuda Indonesia (Persero) Tbk Angkutan
8 INAF - PT Indofarma (Persero) Tbk Farmasi
9 JSMR - PT Jasa Marga (Persero) Tbk Angkutan
10 KAEF - PT Kimia Farma (Persero) Tbk Farmasi

11 KRAS - PT Krakatau Steel (Persero) Tbk Logam
12 PGAS - PT Perusahaan Gas Negara (Persero) Tbk Energi
13 PTBA - PT Tambang Batubara Bukit Asam (Persero) Tbk Tambang
14 PTPP - PT Pembangunan Perumahan (Persero) Tbk Konstruksi
15 SMBR - PT Semen Baturaja (Persero) Tbk Semen

16 SMGR - PT Semen Gresik (Persero) Tbk Semen
17 TINS - PT Timah (Persero) Tbk Tambang
18 TLKM - PT Telkom (Persero) Tbk Telekomunikasi
19 WIKA - PT Wijaya Karya (Persero) Tbk Konstruksi
20 WSKT- PT. Waskita Karya (Persero) Tbk Konstruksi

International Conference on Sustainability 145
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