Green Reputation in Mediating Implementation of Sustainable Development Goals (SDGs) On Company Financial Performance
DOI:
https://doi.org/10.35838/jrap.2025.006Keywords:
SDGs, green reputation, ESG Score, financial performanceAbstract
This study aims to examine the mediating role of green reputation in the relationship between the implementation of Sustainable Development Goals (SDGs) and corporate financial performance. Research data processing using SEM-PLS Analysis. Data sourced from financial reports and sustainability reports published by the company, and ESG score data released by the IDX in collaboration with Morningstar Sustainalytics.The research findings found that although the implementation of SDGs does not have a direct impact on financial performance, there is a significant influence of the implementation of SDGs on green reputation, and green reputation has a significant influence on the company's financial performance, so that green reputation becomes a mediator between the implementation of SDGs on the company's financial performance. The theoretical implications of this study support signaling theory, where green reputation acts as a positive signal to stakeholders regarding a company's commitment to sustainability. In terms of policy, these results encourage companies to not only adopt SDGs, but also proactively build and strengthen their green reputation to maximize the positive impact on the company's financial performance. The novelty of this research lies in the use of the green reputation variable as a mediator with measurements using the ESG-Sutainalytics score.
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Cai, Y.-J., & Choi, T.-M. (2020). A United Nations’ Sustainable Development Goals perspective for sustainable textile and apparel supply chain management. Transportation Research Part E: Logistics and Transportation Review, 141, 102010. https://doi.org/10.1016/j.tre.2020.102010
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Cheng, B. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. https://doi.org/10.1002/smj.2131
Chindasombatcharoen, P., Chatjuthamard, P., Jiraporn, P., & Treepongkaruna, S. (2022). Achieving sustainable development goals through board size and innovation. Sustainable Development, 30(4), 664–677. https://doi.org/10.1002/sd.2264
Chiou, T. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. https://doi.org/10.1016/j.tre.2011.05.016
Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117, 683–693. https://doi.org/10.1016/J.JBUSRES.2018.11.017
Dangelico, R. M., & Pujari, D. (2010). Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability. Journal of Business Ethics, 95(3), 471–486. https://doi.org/10.1007/s10551-010-0434-0
Dao, V. (2011). From green to sustainability: Information Technology and an integrated sustainability framework. Journal of Strategic Information Systems, 20(1), 63–79. https://doi.org/10.1016/j.jsis.2011.01.002
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science, 60(11), 2835–2857. http://www.jstor.org/stable/24550546
Emma, G. M., & Jennifer, M. F. (2021). Is SDG reporting substantial or symbolic? An examination of controversial and environmentally sensitive industries. Journal of Cleaner Production, 298, 126781. https://doi.org/10.1016/j.jclepro.2021.126781
Erin, O. A., Bamigboye, O. A., & Oyewo, B. (2022). Sustainable development goals (SDG) reporting: an analysis of disclosure. Journal of Accounting in Emerging Economies, 12(5), 761–789. https://doi.org/10.1108/JAEE-02-2020-0037
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
Galeazzo, A., Miandar, T., & Carraro, M. (2024). SDGs in corporate responsibility reporting: a longitudinal investigation of institutional determinants and financial performance. Journal of Management and Governance, 28(1), 113–136. https://doi.org/10.1007/s10997-023-09671-y
Girón, A., Kazemikhasragh, A., Cicchiello, A. F., & Panetti, E. (2021). Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa. Journal of the Knowledge Economy, 12(4), 1741–1759. https://doi.org/10.1007/s13132-020-00693-7
Gomez-Trujillo, A. M. (2020). A literature review on the causality between sustainability and corporate reputation: What goes first? Management of Environmental Quality: An International Journal, 31(2), 406–430. https://doi.org/10.1108/MEQ-09-2019-0207
Hair, J. F., Babin, B. J., & Anderson, R. E. (2010). Multivaraite Data Analysis. Prentice Hall.
Hair, J. F., G. Tomas M. Hult, Christian M. Ringle, & Marko Sarstedt. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) Third Edition (3rd Edition). SAGE.
Kazemikhasragh, A., Antonella, F. C., & Maria, C. P. (2021). Factors influencing the adoption of SDG reporting by large African and Asian companies. International Journal of Technology Management & Sustainable Development, 20(1), 43–60. https://doi.org/10.1386/tmsd_00034_1
Lee, M. T., Raschke, R. L., & Krishen, A. S. (2022). Signaling green! firm ESG signals in an interconnected environment that promote brand valuation. Journal of Business Research, 138, 1–11. https://doi.org/10.1016/J.JBUSRES.2021.08.061
Lichtenthaler, U. (2022). Explicating a sustainability-based view of sustainable competitive advantage. Journal of Strategy and Management, 15(1), 76–95. https://doi.org/10.1108/JSMA-06-2021-0126
Magon, R. B., Thomé, A. M. T., Ferrer, A. L. C., & Scavarda, L. F. (2018). Sustainability and performance in operations management research. Journal of Cleaner Production, 190, 104–117. https://doi.org/10.1016/j.jclepro.2018.04.140
Meiryani, M., Houten, S., & Syamil, A. (2024). Finance Performance of Manufacturing Companies Affected by Corporate Social Responsibility Disclosure. JURNAL ASET (AKUNTANSI RISET), 16(1), 79. https://doi.org/10.17509/jaset.v16i1
Mozas-Moral, A., Fernández-Uclés, D., & ... (2021). The role of the SDGs as enhancers of the performance of Spanish wine cooperatives. … Forecasting and Social …. https://www.sciencedirect.com/science/article/pii/S0040162521006090
Muhmad, S. N., & Muhamad, R. (2021). Sustainable business practices and financial performance during pre- and post-SDG adoption periods: a systematic review. Journal of Sustainable Finance & Investment, 11(4), 291–309. https://doi.org/10.1080/20430795.2020.1727724
Papoutsi, A., & Sodhi, M. M. S. (2020). Does disclosure in sustainability reports indicate actual sustainability performance? Journal of Cleaner Production, 260, 121049. https://doi.org/10.1016/J.JCLEPRO.2020.121049
Rahayu, S., Yudi, Y., Rahayu, R., & Jumaili, S. (2022). How Performance Mediate the Effects of Participation and Control Environment on Transparency. Jurnal Ilmiah Akuntansi Dan Bisnis, 17(1). https://doi.org/10.24843/jiab.2022.v17.i01.p05
Ramos, D. L., Chen, S., Rabeeu, A., & Abdul Rahim, A. B. (2022). Does SDG Coverage Influence Firm Performance? Sustainability, 14(9). https://doi.org/10.3390/su14094870
Revaldo, F. W., & Tan, M. K. (2024). Can ESG Save Zombie Companies During the Covid-19 Pandemic? Jurnal ASET (Akuntansi Riset), 16(1), 1. https://doi.org/10.17509/jaset.v16i1
Rosamartina, S., Giustina, S., & Angeloantonio, R. (2022). Digital reputation and firm performance: The moderating role of firm orientation towards sustainable development goals (SDGs). Journal of Business …. https://www.sciencedirect.com/science/article/pii/S0148296322006294
Saeidi, S. P. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Sánchez, G. M., & Morales, M. E. de V. (2018). Corporate reputation and firms’ performance: Evidence from Spain. Corporate Social Responsibility and Environmental Management, 25(6), 1231–1245. https://doi.org/10.1002/csr.1634
Schrettle, S., Hinz, A., Scherrer -Rathje, M., & Friedli, T. (2014). Turning sustainability into action: Explaining firms’ sustainability efforts and their impact on firm performance. International Journal of Production Economics, 147, 73–84. https://doi.org/10.1016/j.ijpe.2013.02.030
Selpiyanti, S., & Fakhroni, Z. (2020). Pengaruh Implementasi Green Accounting dan Material Flow Cost Accounting Terhadap Sustainable Development. Jurnal ASET (Akuntansi Riset), 12(1), 109–116. https://doi.org/10.17509/jaset.v12i1.23281
Turzo, T., Marzi, G., Favino, C., & Terzani, S. (2022). Non-financial reporting research and practice: Lessons from the last decade. Journal of Cleaner Production, 345, 131154. https://doi.org/10.1016/j.jclepro.2022.131154
Tyan, J., Liu, S.-C., Lin, C. Y.-Y., & Chang, T.-Y. (2024). Unlocking the Connection between Corporate Social Responsibility Strategy and Firm Performance: Unveiling Mediating and Moderating Effects. Journal of Business Ethics. https://doi.org/10.1007/s10551-024-05758-0
Xi, B., Wang, Y., & Yang, M. (2022). Green credit, green reputation, and corporate financial performance: evidence from China. Environmental Science and Pollution Research, 29(2), 2401–2419. https://doi.org/10.1007/s11356-021-15646-z
van Zanten, J. A., & van Tulder, R. (2021). Improving companies’ impacts on sustainable development: A nexus approach to the SDGS. Business Strategy and the Environment, 30(8), 3703–3720. https://doi.org/10.1002/bse.2835
Akturan, U. (2020). Pay-premium for green brands: evidence from an emerging country. Journal of Global Responsibility, 11(3), 219–232. https://doi.org/10.1108/JGR-03-2019-0034
Ardiana, P. A. (2023). Is Sustainability Reporting Really About Reporting Sustainability? Jurnal Ilmiah Akuntansi Dan Bisnis, 18(2), 216. https://doi.org/10.24843/jiab.2023.v18.i02.p02
Bissoondoyal-Bheenick, E., Brooks, R., & Do, H. X. (2023). ESG and firm performance: The role of size and media channels. Economic Modelling. https://www.sciencedirect.com/science/article/pii/S0264999323000159
Cai, Y.-J., & Choi, T.-M. (2020). A United Nations’ Sustainable Development Goals perspective for sustainable textile and apparel supply chain management. Transportation Research Part E: Logistics and Transportation Review, 141, 102010. https://doi.org/10.1016/j.tre.2020.102010
Calabrese, A., Costa, R., Ghiron, N. L., Tiburzi, L., & ... (2021). How sustainable-orientated service innovation strategies are contributing to the sustainable development goals. … Forecasting and Social …. https://www.sciencedirect.com/science/article/pii/S0040162521002481
Cheng, B. (2014). Corporate social responsibility and access to finance. Strategic Management Journal, 35(1), 1–23. https://doi.org/10.1002/smj.2131
Chindasombatcharoen, P., Chatjuthamard, P., Jiraporn, P., & Treepongkaruna, S. (2022). Achieving sustainable development goals through board size and innovation. Sustainable Development, 30(4), 664–677. https://doi.org/10.1002/sd.2264
Chiou, T. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822–836. https://doi.org/10.1016/j.tre.2011.05.016
Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117, 683–693. https://doi.org/10.1016/J.JBUSRES.2018.11.017
Dangelico, R. M., & Pujari, D. (2010). Mainstreaming Green Product Innovation: Why and How Companies Integrate Environmental Sustainability. Journal of Business Ethics, 95(3), 471–486. https://doi.org/10.1007/s10551-010-0434-0
Dao, V. (2011). From green to sustainability: Information Technology and an integrated sustainability framework. Journal of Strategic Information Systems, 20(1), 63–79. https://doi.org/10.1016/j.jsis.2011.01.002
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The Impact of Corporate Sustainability on Organizational Processes and Performance. Management Science, 60(11), 2835–2857. http://www.jstor.org/stable/24550546
Emma, G. M., & Jennifer, M. F. (2021). Is SDG reporting substantial or symbolic? An examination of controversial and environmentally sensitive industries. Journal of Cleaner Production, 298, 126781. https://doi.org/10.1016/j.jclepro.2021.126781
Erin, O. A., Bamigboye, O. A., & Oyewo, B. (2022). Sustainable development goals (SDG) reporting: an analysis of disclosure. Journal of Accounting in Emerging Economies, 12(5), 761–789. https://doi.org/10.1108/JAEE-02-2020-0037
Friede, G., Busch, T., & Bassen, A. (2015). ESG and financial performance: aggregated evidence from more than 2000 empirical studies. Journal of Sustainable Finance & Investment, 5(4), 210–233. https://doi.org/10.1080/20430795.2015.1118917
Galeazzo, A., Miandar, T., & Carraro, M. (2024). SDGs in corporate responsibility reporting: a longitudinal investigation of institutional determinants and financial performance. Journal of Management and Governance, 28(1), 113–136. https://doi.org/10.1007/s10997-023-09671-y
Girón, A., Kazemikhasragh, A., Cicchiello, A. F., & Panetti, E. (2021). Sustainability Reporting and Firms’ Economic Performance: Evidence from Asia and Africa. Journal of the Knowledge Economy, 12(4), 1741–1759. https://doi.org/10.1007/s13132-020-00693-7
Gomez-Trujillo, A. M. (2020). A literature review on the causality between sustainability and corporate reputation: What goes first? Management of Environmental Quality: An International Journal, 31(2), 406–430. https://doi.org/10.1108/MEQ-09-2019-0207
Hair, J. F., Babin, B. J., & Anderson, R. E. (2010). Multivaraite Data Analysis. Prentice Hall.
Hair, J. F., G. Tomas M. Hult, Christian M. Ringle, & Marko Sarstedt. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) Third Edition (3rd Edition). SAGE.
Kazemikhasragh, A., Antonella, F. C., & Maria, C. P. (2021). Factors influencing the adoption of SDG reporting by large African and Asian companies. International Journal of Technology Management & Sustainable Development, 20(1), 43–60. https://doi.org/10.1386/tmsd_00034_1
Lee, M. T., Raschke, R. L., & Krishen, A. S. (2022). Signaling green! firm ESG signals in an interconnected environment that promote brand valuation. Journal of Business Research, 138, 1–11. https://doi.org/10.1016/J.JBUSRES.2021.08.061
Lichtenthaler, U. (2022). Explicating a sustainability-based view of sustainable competitive advantage. Journal of Strategy and Management, 15(1), 76–95. https://doi.org/10.1108/JSMA-06-2021-0126
Magon, R. B., Thomé, A. M. T., Ferrer, A. L. C., & Scavarda, L. F. (2018). Sustainability and performance in operations management research. Journal of Cleaner Production, 190, 104–117. https://doi.org/10.1016/j.jclepro.2018.04.140
Meiryani, M., Houten, S., & Syamil, A. (2024). Finance Performance of Manufacturing Companies Affected by Corporate Social Responsibility Disclosure. JURNAL ASET (AKUNTANSI RISET), 16(1), 79. https://doi.org/10.17509/jaset.v16i1
Mozas-Moral, A., Fernández-Uclés, D., & ... (2021). The role of the SDGs as enhancers of the performance of Spanish wine cooperatives. … Forecasting and Social …. https://www.sciencedirect.com/science/article/pii/S0040162521006090
Muhmad, S. N., & Muhamad, R. (2021). Sustainable business practices and financial performance during pre- and post-SDG adoption periods: a systematic review. Journal of Sustainable Finance & Investment, 11(4), 291–309. https://doi.org/10.1080/20430795.2020.1727724
Papoutsi, A., & Sodhi, M. M. S. (2020). Does disclosure in sustainability reports indicate actual sustainability performance? Journal of Cleaner Production, 260, 121049. https://doi.org/10.1016/J.JCLEPRO.2020.121049
Rahayu, S., Yudi, Y., Rahayu, R., & Jumaili, S. (2022). How Performance Mediate the Effects of Participation and Control Environment on Transparency. Jurnal Ilmiah Akuntansi Dan Bisnis, 17(1). https://doi.org/10.24843/jiab.2022.v17.i01.p05
Ramos, D. L., Chen, S., Rabeeu, A., & Abdul Rahim, A. B. (2022). Does SDG Coverage Influence Firm Performance? Sustainability, 14(9). https://doi.org/10.3390/su14094870
Revaldo, F. W., & Tan, M. K. (2024). Can ESG Save Zombie Companies During the Covid-19 Pandemic? Jurnal ASET (Akuntansi Riset), 16(1), 1. https://doi.org/10.17509/jaset.v16i1
Rosamartina, S., Giustina, S., & Angeloantonio, R. (2022). Digital reputation and firm performance: The moderating role of firm orientation towards sustainable development goals (SDGs). Journal of Business …. https://www.sciencedirect.com/science/article/pii/S0148296322006294
Saeidi, S. P. (2015). How does corporate social responsibility contribute to firm financial performance? The mediating role of competitive advantage, reputation, and customer satisfaction. Journal of Business Research, 68(2), 341–350. https://doi.org/10.1016/j.jbusres.2014.06.024
Sánchez, G. M., & Morales, M. E. de V. (2018). Corporate reputation and firms’ performance: Evidence from Spain. Corporate Social Responsibility and Environmental Management, 25(6), 1231–1245. https://doi.org/10.1002/csr.1634
Schrettle, S., Hinz, A., Scherrer -Rathje, M., & Friedli, T. (2014). Turning sustainability into action: Explaining firms’ sustainability efforts and their impact on firm performance. International Journal of Production Economics, 147, 73–84. https://doi.org/10.1016/j.ijpe.2013.02.030
Selpiyanti, S., & Fakhroni, Z. (2020). Pengaruh Implementasi Green Accounting dan Material Flow Cost Accounting Terhadap Sustainable Development. Jurnal ASET (Akuntansi Riset), 12(1), 109–116. https://doi.org/10.17509/jaset.v12i1.23281
Turzo, T., Marzi, G., Favino, C., & Terzani, S. (2022). Non-financial reporting research and practice: Lessons from the last decade. Journal of Cleaner Production, 345, 131154. https://doi.org/10.1016/j.jclepro.2022.131154
Tyan, J., Liu, S.-C., Lin, C. Y.-Y., & Chang, T.-Y. (2024). Unlocking the Connection between Corporate Social Responsibility Strategy and Firm Performance: Unveiling Mediating and Moderating Effects. Journal of Business Ethics. https://doi.org/10.1007/s10551-024-05758-0
Xi, B., Wang, Y., & Yang, M. (2022). Green credit, green reputation, and corporate financial performance: evidence from China. Environmental Science and Pollution Research, 29(2), 2401–2419. https://doi.org/10.1007/s11356-021-15646-z
van Zanten, J. A., & van Tulder, R. (2021). Improving companies’ impacts on sustainable development: A nexus approach to the SDGS. Business Strategy and the Environment, 30(8), 3703–3720. https://doi.org/10.1002/bse.2835
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2025-06-30
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Green Reputation in Mediating Implementation of Sustainable Development Goals (SDGs) On Company Financial Performance. (2025). JRAP (Jurnal Riset Akuntansi Dan Perpajakan), 13(1). https://doi.org/10.35838/jrap.2025.006
