THE IMPACT OF CSR DISCLOSURE ON PROFITABILITY AND FIRM VALUE(CASE STUDY OF COMPANY LISTED IN INDONESIA STOCK EXCHANGE)

• Main Author: Herda Siagian, Joshua
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/80002
• Institution: Institut Teknologi Bandung

Companies now have to disclose their corporate social responsibility (CSR) practices, particularly in Indonesia. CSR is an integrated concept that harmoniously blends social and business elements to enable businesses to maximize revenues while also promoting stakeholder well-being. Economic development, social development, and environmental protection are the three policy areas that are encompassed by sustainable development, also referred to as the Triple Bottom Line. The practice of disclosing financial and non-financial data to parties other than shareholders is known as corporate responsibility reporting, or CSR. Stakeholders are informed by the report about the reporting organization's capacity for risk management. For a business to be successful over the long run and to create value for society and a competitive advantage, it must pursue sustainable business development advantage Even though 74% of Indonesian customers choose businesses with a social conscience, just 20% of corporations report engaging in CSR initiatives, according to the Indonesian Stock Exchange. Consequently, it is clarified that regardless of the amount of money a business must spend on corporate social responsibility (CSR) to safeguard the environment and protect the planet, the business will expand its market over time, leading to higher profits and improved financial performance. favorable features that will eventually benefit the community and enhance the company's reputation, encouraging numerous investors to fund the business. This study focuses on investigating the effects of corporate social responsibility (CSR) disclosure on the value and profitability of companies listed on the Indonesian Stock Exchange through empirical testing. Fifteen historical financial data sets and sustainability reports are used in this study. The company's sustainability reports and historical financial data were collected between 2015 and 2021. Panel data regression is used in this study. The study's findings demonstrate that there is no meaningful correlation between CSR disclosure and business value or profitability. The low average corporate social responsibility (CSR) statistic reflects this. The lack of businesses engaging in CSR initiatives in sustainability reports is the reason behind this. To produce meaningful findings on CSR disclosure, it is intended that the scope of the study can be broadened in the future by utilizing a wider range of proxies for profitability and firm value. Aside from that, given the challenges in gathering data, it is anticipated that companies listed on the Indonesian stock exchange will publish sustainability reports. Furthermore, it is hoped that we will gain a greater understanding of how CSR disclosure may enhance profitability and company value, making it a resource for stakeholders.