THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON COMPANIES’ PROFITABILITY IN INDONESIA

Dewi, Amelia Chintya (2022) THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY ON COMPANIES’ PROFITABILITY IN INDONESIA. S1 thesis, Universitas Atma Jaya Yogyakarta.

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Abstract

The purpose of this study is to determine if Corporate Social Responsibility has any effect on the profitability of non-cyclical consumer goods sector companies in Indonesia. This research provides two models to examine the short term and long-term effects of Corporate Social Responsibility on the companies’ profitability. The sample size for the first model is 315, which comprises data from 63 companies over a five-year period. The second model has 63 samples. This study employs a quantitative approach. The descriptive statistics are used to analyse the data, followed by the F-test and ANOVA. Durbin-Watson test was also employed to check whether there is any autocorrelation in the regression. While the statistical computations were significant, the independent and control factors' influence on the dependent variable is extremely modest. Thus, the results of these statistical computations reveal that the existence of CSR has a negligible effect on the companies' profitability in Indonesia.

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