SHS Web Conf.
Volume 86, 2020ICORE 2019 – The International Conference on Rural Development and Entrepreneurship
|Number of page(s)||11|
|Published online||20 November 2020|
What is Behind Green Industry Motive to Maintain Rural Areas?
Universitas Jenderal Soedirman
2 Universitas Jenderal Soedirman
* Corresponding author: email@example.com
The environmental damage is one of the essential factors that determine of disasters. Industrial activities that are mostly in urban areas are contributors to this problem. These activities often exploit resources from rural to an urban area. So that industry is required to be actively involved in maintaining the rural area alike implementing a green industry thatcan be represent through the application of green accounting which is disclose environmental information. The purpose of this paper is to explain the involved an industry in rural areas. Especially, to explain benefit and industry motive. This study uses legitimacy theory and stakeholder theory as a theoretical framework to explain the role of industry. The research method used a quantitative approach and seconder data from Indonesia stock exchange with the LQ45 index as a sample. The data analyzed using multiple regression and path analysis to examine environmental factors that influence the economic performance. The result of this study shows that environmental performance and environmental cost has an influence on environmental disclosure then influence economic performance. Furthermore, it can be identified that the company get the benefit from environmental performance and environmental cost. Also, Economic performance is a reason why an industry involved in maintaining the rural area.
© The Authors, published by EDP Sciences, 2020
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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