Implications of Corporate Social Responsibility (CSR) on the Financial Performance of Companies Receiving the Sustainability Reporting Award (SRA)

Abstract

The purpose of this study is to test or analyze the financial capacity of the company's use of corporate social responsibility. This measurement of social responsibility is carried out based on the General Reporting Initiative or often called GRI which is used in testing. Explanatory research with a quantitative approach aims to analyze a theory that is used to find out whether the previous test hypothesis is accepted or rejected. Companies that have joined the Winner of Sustainability Reporting Awards (SRA) have a total of 32 companies as the sample population for observational testing that publish their sustainability review activities clearly and are listed on the Indonesia Stock Exchange in the 2015-2018 period. Purposive sampling where there are 17 companies described in the test so that the sample used for 4 years becomes 68 samples as a means of observational testing. Descriptive analysis and inferential analysis describe 2 systems for examining research evidence tests. Comparison of data translation methods applies classical assumption testing and hypothesis testing. The conclusion from this test is expected to be able to have the accuracy of research data if Corporate Social Responsibility (CSR) does not significantly affect Return On Assets (ROA), Corporate Social Responsibility (CSR) does not significantly affect Return On Equity (ROE), Corporate Social Responsibility (CSR) has no significant effect on Price book Value (PBV).