How participatory is corporate environmental performance rating? An assessment of Indonesia's PROPER program Online publication date: Wed, 08-Dec-2021
by Inez Fitri; Aili Pyhälä
International Journal of Environmental Policy and Decision Making (IJEPDM), Vol. 3, No. 1, 2021
Abstract: Before, Indonesia used the common 'command-and-control' policy approach to regulate business activities in relation to environmental protection. Indonesia's PROPER program is the first developed incentive-based monitoring system of companies' environmental performance through public disclosure of companies' performance rating at the national level. Already adopted in many other developing countries, one of its keys to supposed effectiveness is that it incorporates stakeholder participation into the mechanism. However, to date, no study has been undertaken to evaluate the participatory process. This study aims to fill this gap by assessing the implementation of stakeholder participation in the PROPER program and investigating stakeholders' perceptions towards the program. The study identifies current levels of stakeholder participation and shortcomings in the process, and suggests ways to improve the PROPER program through the reinforcement of stakeholder participation.
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