THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY TO FINANCIAL PERFORMANCE OF MANUFACTURE COMPANIES IN INDONESIA

Maharani, Rahma Melia (2024) THE INFLUENCE OF CORPORATE SOCIAL RESPONSIBILITY TO FINANCIAL PERFORMANCE OF MANUFACTURE COMPANIES IN INDONESIA. S1 thesis, UNIVERSITAS ATMA JAYA YOGYAKARTA.

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Abstract

This research aims to analyze the influence of the Corporate Social Responsibility Disclosure Index (CSRDI) on Return on Assets (ROA) in manufacturing companies in Indonesia. CSRDI is used as an indicator of corporate social responsibility, while ROA is used as a measure of company financial performance. This research method involves collecting data through documentation studies, especially sustainability reports and annual reports. The research sample consists of companies listed on the stock exchange and have complete data during the research period. Linear regression analysis is used to test the relationship between CSRDI and ROA variables. The research results are expected to provide insight into the extent to which CSR disclosure can influence a company's financial performance. The findings of this research can contribute to the literature on the impact of CSR on financial performance and enrich understanding of the importance of corporate social responsibility in an economic and financial context. This research has practical x implications for companies in managing their social responsibilities and for financial parties interested in the impact of CSR disclosure on company value. In addition, this research can serve as a basis for further research in exploring the relationship between corporate social responsibility practices in different industrial contexts. The results of this research show that CSDI have a positive effect on ROA.

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