¹Frans B. M. Dabukke, ²Harianto, ³Bungaran Saragih, ⁴Setiadi Djohar

^1,2,3,4Business School IPB University, Bogor Indonesia

DOI : https://doi.org/10.47191/ijsshr/v7-i09-11

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ABSTRACT

This study investigates the determinants of Corporate Sustainability Performance (CSP) in PT Pupuk Indonesia (Persero), a leading state-owned enterprise in Indonesia's fertilizer industry. The research focuses on the impact of Environmental, Social, Governance (ESG), Operational, Leadership, and Strategic Transformation factors on CSP. Utilizing a Structural Equation Modeling-Partial Least Squares (SEM-PLS) approach, the study reveals that Operational Performance is the most significant driver of CSP, with Governance and Social factors also playing crucial roles. However, Environmental, Leadership, and Strategic Transformation variables show limited direct influence on CSP. These findings suggest that while operational efficiency and governance are critical for enhancing sustainability, the importance of social responsibility, visionary leadership, and long-term environmental strategies should not be underestimated. The study offers strategic insights for corporate leaders, emphasizing a balanced and comprehensive approach to achieving sustainable growth in energy-intensive industries.

KEYWORDS:

Corporate Sustainability Performance, Operational Performance, Governance, Social Responsibility, Structural Equation Modeling (SEM-PLS).

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Volume 07 Issue 09 september 2024