Does The Village Owned Enterprises Care About Environmental, Social, and Economics Sustainability?

Village-owned enterprises (BUMDes) are village commercial institutions that utilize the potential of local village resources to make a profit. BUMDes also provides social services that are in favor of the welfare of village communities. Responsibility for maintaining surrounding conditions such as the environment, social, and economic conditions is an absolute responsibility for BUMDes that cannot be avoided. This research aimed to determine the motivation of BUMDes management in conveying accountability information on BUMDes activities to the public. Through the lens of stakeholder theory, it is thought that we will better comprehend the management’s motivation in showing the public the accountability of all its activities. BUMDes is a form of implementation of village financial management that will manage the potential for village independence with various kinds of economic activities in a community-based and mutually cooperative manner. This is the attraction of BUMDes as the object of this research study. The population in this study was all BUMDes financial staff in Kebumen Regency. Data was obtained through a questionnaire given to a sample of respondents selected using the purposive sampling method. Research data was analyzed using multiple regression analysis. The results show that government regulatory pressure, community pressure, and environmental organizations pressure all are proven to encourage BUMDes to disclose their activities. However, mass media pressure does not always encourage BUMDes to disclose their activities. Suggestions for further research include using other theoretical perspectives such as legitimacy and stakeholders, in looking at the BUMDes management motivation.