Social Responsibility and Regulatory Issues: A Review of Corporate Financial Reporting in the Palm Oil Industry

Abstract

The palm oil industry has increasingly faced global criticism regarding its environmental degradation, labor practices, and governance challenges, placing corporate financial reporting at the center of debates on accountability and transparency. This study aims to critically review how social responsibility and regulatory issues are incorporated into corporate financial reporting practices in the palm oil sector, and to identify gaps that limit their effectiveness. A qualitative research design was employed through a systematic literature review (SLR), which is appropriate for synthesizing complex evidence across multiple studies. Data were collected from Scopus-indexed publications using structured keyword searches, followed by rigorous inclusion and exclusion criteria. A total of forty articles published between 2020 and 2025 were selected. The analysis used thematic coding to identify recurring practices, reporting standards, and challenges. Findings highlight four major themes: persistent fragmentation between global and national standards, disparities in reporting capacity between large and small enterprises, limited independent verification that undermines credibility, and strong external stakeholder pressure as the main driver of improved disclosure quality. Global frameworks such as GRI, TCFD, and IFRS enhance transparency but are unevenly applied, while national mechanisms such as ISPO and MSPO lack alignment with international benchmarks. In conclusion, corporate financial reporting in the palm oil industry demonstrates gradual progress in integrating social responsibility and regulatory compliance, though fundamental structural challenges persist. Future research should explore hybrid reporting models, stronger enforcement, and targeted capacity building to ensure greater inclusivity and credibility across the sector.