Readability of Sustainability Reports in Indonesian Companies

What is it about?

The research explores how easy it is to understand sustainability reports in Indonesia. The government requires companies to issue these reports, but the study found that many are difficult to read. Using linguistic techniques, the researchers found a low level of readability, suggesting that the information is hard for users to understand. The study emphasizes the need for clearer and more understandable sustainability reports, as mandated by regulations, to enhance their usefulness for investors and other stakeholders in Indonesia. This research is one of the first of its kind in Indonesia, focusing on improving the quality of sustainability reports.

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Photo by Geio Tischler on Unsplash

Photo by Geio Tischler on Unsplash

Why is it important?

This research is important because it evaluates the readability of sustainability reports in Indonesia, focusing on how easily people can understand the information presented in these reports. The Indonesian government requires companies to issue sustainability reports, but the study found that many of these reports are challenging to comprehend. This raises concerns about the effectiveness of these reports in conveying information to stakeholders. The research highlights the need for clearer and more intelligible sustainability reports, which can be valuable for investors and other users. By addressing the readability issues, the study contributes to enhancing the quality and usefulness of sustainability reporting in Indonesia, promoting transparency and accountability in companies' sustainable practices.