The Impact of Corporate Social Responsibility on the Growth of Basic Materials Sector Companies Listed on the Indonesian Stock Exchange
Keywords:
Corporate Social Responsibility, Financial Performance, Company Growth, Revenue Growth, Asset Growth.
Abstract
This study aims to analyze the effect of Corporate Social Responsibility (CSR) on the growth of basic materials sector companies listed on the Indonesia Stock Exchange (IDX). The population used in this study are all basic materials sector companies listed on the IDX for the period 2018-2022. The sample used in this study was determined by purposive sampling method, so that 71 companies were obtained with a total of 302 observations. This study uses secondary data in the form of annual reports (for CSR variables) and financial reports obtained from the official IDX website and each company. CSR measurement in this study uses an index measured based on a list of items that must be disclosed according to GRI Standards. The analysis method used is multiple linear regression analysis using SPSS 15.0. The results of this study indicate that 1) Corporate Social Responsibility (CSR) has a positive and significant effect on revenue growth, 2) Corporate Social Responsibility (CSR) has a positive and significant effect on total growth rate of assets.
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References
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Buallay, A., Kukreja, G., Aldhaen, E., Al Mubarak, M., & Hamdan, A. M. (2020). Corporate social responsibility disclosure and firms’ performance in Mediterranean countries: a stakeholders’ perspective. EuroMed Journal of Business, 15(3), 361–375. https://doi.org/10.1108/EMJB-05-2019-0066
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Cho, S. J., Chung, C. Y., & Young, J. (2019). Study on the relationship between CSR and financial performance. Sustainability (Switzerland), 11(2), 1–26. https://doi.org/10.3390/su11020343
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Sisdianto, E., & Fitri, A. (2020). Pengaruh Firm Growth and Firm Value on Corporate Social Responsibility in Indonesia (Survey Pada Bank Mandiri dan Bank Mandiri Syariah Tahun 2014-2018). Al-Mal: Jurnal Akuntansi Dan Keuangan Islam, 01(01), 9–24.
Sumarna, A. D. (2016). Faktor-faktor yang Mempengaruhi Pertumbuhan Perusahaan. Jurnal Benefita, 1(2), 48–57.
Buallay, A., Kukreja, G., Aldhaen, E., Al Mubarak, M., & Hamdan, A. M. (2020). Corporate social responsibility disclosure and firms’ performance in Mediterranean countries: a stakeholders’ perspective. EuroMed Journal of Business, 15(3), 361–375. https://doi.org/10.1108/EMJB-05-2019-0066
Cahyono, D., & Rachmaniyah, A. (2020). Pengungkapan Corporate Social Responsibility (CSR) dan Kinerja Keuangan Perusahaan Manufaktur Indonesia dan Malaysia. Jurnal Ilmiah Akuntansi (JIA), 5(2), 264–284. https://doi.org/10.36982/jiegmk.v7i1.104
Cho, S. J., Chung, C. Y., & Young, J. (2019). Study on the relationship between CSR and financial performance. Sustainability (Switzerland), 11(2), 1–26. https://doi.org/10.3390/su11020343
Deegan, C. M. (2019). Legitimacy theory: Despite its enduring popularity and contribution, time is right for a necessary makeover. Accounting, Auditing and Accountability Journal, 32(8), 2307–2329. https://doi.org/10.1108/AAAJ-08-2018-3638
Dewanti, I., & Afif, A. S. (2022). Pengaruh Size, Ukuran Dewan Komisaris, ROA dan Sales Growth terhadap Pengungkapan Corporate Social Responsibility (CSR). JIIP - Jurnal Ilmiah Ilmu Pendidikan, 5(10), 4112–4119. https://doi.org/10.54371/jiip.v5i10.929
Dhani, I. P., & Utama, A. A. G. S. (2017). Pengaruh pertumbuhan perusahaan, struktur modal, dan profitabilitas terhadap nilai perusahaan. Jurnal Riset Akuntansi Dan Bisnis Airlangga, 2(1), 135–148.
Dowling, J., & Pfeffer, J. (1975). Organizational Legitimacy: Social Values and Organizational Behavior. The Pacific Sosiological Review, 18(1), 122–136. https://doi.org/https://doi.org/10.2307/1388226
Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Cambridge University Press. https://books.google.co.id/books?hl=en&lr=&id=NpmA_qEiOpkC&oi=fnd&pg=PR5&ots=62bkJ1Q7MN&sig=V2fcD1iNHZaGDZ03OLuj_fz1vfI&redir_esc=y#v=onepage&q&f=false
Hutabarat, F. (2020). Analisis Kinerja Keuangan Perusahaan. Desanta Muliavistama. https://www.google.co.id/books/edition/Analisis_Kinerja_Keuangan_Perusahaan/Vz0fEAAAQBAJ?hl=en&gbpv=1&kptab=overview
idx.co.id. (n.d.). Retrieved February 5, 2024, from https://www.idx.co.id/id
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: manajerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1177/0018726718812602
Mahrani, M., & Soewarno, N. (2018). The effect of good corporate governance mechanism and corporate social responsibility on financial performance with earnings management as mediating variable. Asian Journal of Accounting Research, 3(1), 41–60. https://doi.org/10.1108/AJAR-06-2018-0008
Mansour, M., Al Amosh, H., Alodat, A. Y., Khatib, S. F. A., & Saleh, M. W. A. (2022). The Relationship between Corporate Governance Quality and Firm Performance: The Moderating Role of Capital Structure. Sustainability (Switzerland), 14(17), 1–25. https://doi.org/10.3390/su141710525
Nguyen, V. H., Agbola, F. W., & Choi, B. (2022). Does Corporate Social Responsibility Enhance Financial Performance? Evidence from Australia. Australian Accounting Review, 32(1), 5–18. https://doi.org/10.1111/auar.12347
Okafor, A., Adusei, M., & Adeleye, B. N. (2021). Corporate social responsibility and financial performance: Evidence from U.S tech firms. In Journal of Cleaner Production (Vol. 292). Elsevier Ltd. https://doi.org/10.1016/j.jclepro.2021.126078
Rahmawati, E., Dwianika, A., & Sofia, I. P. (2023). Pengaruh Kinerja Lingkungan, Pertumbuhan Perusahaan dan Likuiditas terhadap Kinerja Keuangan dengan Corporate Social Responsibility sebagai Variabel Intervening. Konferensi Ilmiah Akuntansi X Faculty of Economics and Business, 1–15.
Sisdianto, E., & Fitri, A. (2020). Pengaruh Firm Growth and Firm Value on Corporate Social Responsibility in Indonesia (Survey Pada Bank Mandiri dan Bank Mandiri Syariah Tahun 2014-2018). Al-Mal: Jurnal Akuntansi Dan Keuangan Islam, 01(01), 9–24.
Sumarna, A. D. (2016). Faktor-faktor yang Mempengaruhi Pertumbuhan Perusahaan. Jurnal Benefita, 1(2), 48–57.
