This study aims to investigate how Chief Financial Officers (CFOs) in Indonesia navigate sustainability integration within mandatory reporting frameworks that reflect colonial legacies privileging Western approaches over local knowledge systems.
Employing a decolonial lens through an interpretivist approach, this study investigated CFO navigate sustainability integration with a broad range of stakeholders. A two-pronged approach was used to gather data: in-depth interviews with 27 managers from eight listed Indonesian companies along with a survey of 28 Indonesian CFOs. Thematic analysis was employed to identify key patterns and themes.
Indonesian CFOs primarily focus on data stewardship and regulatory compliance, reflecting how colonial legacies shape corporate practices through imposed Western reporting frameworks. This decolonial analysis reveals finance leaders struggling against the domination of Western financial paradigms, where reporting becomes an extension of colonial control rather than addressing local sustainability needs. These power structures include dominant economic paradigms and external pressures which constrain CFO roles and perpetuate dependence on imported frameworks. To overcome this capability building that validates local knowledge systems is necessary to navigate global requirements for better societal outcomes.
Future research should explore the dynamics between CFOs and other top management team members like Chief Sustainability Officers, Chief Operating Officers and Chief Executive Officers in driving sustainability integration. A decolonial lens can enlighten how these dynamics work.
This study uniquely reveals how Indonesian CFOs struggle against colonial power structures that impose Western reporting frameworks, while being simultaneously constrained by their strong ties with shareholders who prioritize global financial metrics over sustainability values.
