Main Article Content
Abstract
Changes in global business dynamics require companies to not only focus on profit, but also pay attention to social responsibility and environmental sustainability through the application of the Triple Bottom Line concept, which emphasizes a balance between profit, people, and planet. The Fast-Moving Consumer Goods (FMCG) sector is one of the sectors most vulnerable to sustainability issues due to its high production volume and use of disposable packaging, which has the potential to generate waste. This study aims to examine the effect of Sustainability Reporting (SR), Community Development (CD), and Waste Management Program (WMP) on the profitability of FMCG companies listed on the Indonesia Stock Exchange during the period 2022–2024.
The research method used a quantitative approach with panel data regression analysis and a Random Effects model. Each sustainability variable was measured using binary indicators to represent the existence of the program being implemented, while profitability was proxied by Return on Assets (ROA). The results of the analysis showed that SR, CD, and WMP had no significant effect on profitability, either partially or simultaneously. The Adjusted R² value of -0.0047 indicates that these three variables only explain 3.6% of the variation in company profitability, while the rest is influenced by other factors outside the model. These findings confirm that the implementation of sustainability practices in FMCG companies in Indonesia is more oriented towards achieving social legitimacy and long-term reputation, rather than increasing short-term financial profits.
Keywords: Sustainability Reporting, Community Development, Waste Management Program