CORPORATE SOCIAL PERFORMANCE OF INDONESIAN LQ 45 COMPANIES USING SUSTAINABILITY AND ANNUAL REPORTS

• Main Author: Bagus Wahyudiono, Rio
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78740
• Institution: Institut Teknologi Bandung

Social responsibility becomes more popular in this decade alongside with the global concerns about global warming issue and now is one of the important things for investors in determining which company they will invest. As well as in Indonesia, trend shifting in investment decision in Indonesia demand a comprehensive and transparency methodology to measure companies in socially responsible way. Currently, there is thin literature in Indonesia regarding corporate social performance under reliable model. This paper tries to give new perspective in assessing corporate social performance under KLD model. Moreover, there is thin study in Indonesia related with the correlations between determinant factors and corporate social performance. This research’s sample is LQ 45 for the period of 2014. This paper will also find the determinant of corporate social performance of those companies. This study constructs the social ranking under KLD model. Moreover, This study finds that firm size and government ownership are positively significant, while industry is negatively significant to CSP score. This research’s result give contribution to the literature related corporate social performance of Indonesian LQ 45 and give investment insight for investors who invest in Indonesian capital market as well as social consideration.