Forensic Audit of OHS and Environmental Disclosures in Indonesia’s FMCG Sector

Vollständiger Abstract

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Introduction: Sustainability reporting within the Indonesian Fast-Moving Consumer Goods (FMCG) sector is receiving closer public attention. This study investigates whether firm size guarantees disclosure quality in occupational health and safety (OHS) and environmental performance. Methods: A sample of 20 manufacturing firms is taken with specific criteria and divided into large- and small-capitalization groups. This study then applies forensic ‘strict audit’ procedures based on the Global Reporting Initiative (GRI) to avoid symbolic claims and prioritize verifiable evidence, such as quantitative data and valid certifications. Results: Mann-Whitney U test results indicate that large-capitalization firms outperformed small-capitalization firms in environmental disclosure (U = 20.500, p = 0.022, effect size r = 0.511). In contrast, no significant difference in OHS transparency (U = 30.000, p = 0.124, effect size r = 0.344). The total disclosure score (H3) shows the difference between the two groups is not statistically significant (U = 24.500, p = 0.051, effect size r = 0.435). Large-Capitalization firms possess high inconsistency, where proven by a standard deviation ( ), suggesting a reliance on policy commitments rather than granular safety data. Additionally, a strong positive correlation (rs ) reflects a broader organizational reporting orientation. Conclusion: Firm size is a reliable indicator of environmental disclosure quality, but it does not ensure that safety disclosure is mature. This result shows that there is a gap between policy commitments and detailed technical accountability. As a result, regulators should prioritize clear and targeted capacity-building programs instead of relying mainly on regulatory enforcement.