Influence of Corporate Social Responsibility Disclosure to the Profitability with a Company Size as Moderating Variable

Rima, Amy and Carolina, Yenni (2022) Influence of Corporate Social Responsibility Disclosure to the Profitability with a Company Size as Moderating Variable. International Journal of Business, Economics and Law, 26 (1). pp. 34-44. ISSN 2289-1552

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Abstract

Disclosure of Corporate Social Responsibility CSR is a program that is seen as a form of Corporate Social Responsibility towards stakeholders and the environment in all aspects of the company's operations. In addition to pursuing profit for stakeholders, companies must also pay attention to and be involved in fulfilling community welfare. Mining industry activities are always associated with corporate social responsibility towards the communities around mining. This CSR program in its implementation in the mining world consists of five aspects, namely community relations, community empowerment, structural development, natural and environmental disasters, and operational aspects. The phenomenon of Covid-19 has changed the order of life and significant changes in various fields, including the economy. The impact of Covid-19 has become one of the reasons companies do not disclose their corporate social responsibility even though profitability has increased, including for mining companies. The research was conducted on mining companies listed on the Indonesia Stock Exchange (IDX) for the 2018-2020 period. The purpose of this research is to find out how the effect of corporate social responsibility disclosure on profitability, the effect of corporate social responsibility disclosure on profitability with company size as a moderating variable. This study uses a quantitative method with a population of mining companies listed on the IDX for the period 2018-2020. This method serves to convert qualitative information into quantitative ones by referring to the Sustainability Reporting Guidlines (SRG) issued by the Global Reporting Initiatives (GRI). The sampling technique used was purposive sampling. With a sample of 23 companies. Data processing is carried out by using multiple linear regression tests containing interactions between variables or often referred to as Moderated Regression Analysis (MRA). The results show that Corporate social responsibility disclosures have an effect on the profitability of mining companies listed on the IDX for the 2018-2020 period. Corporate social responsibility has an effect on profitability which is moderated by company size in mining companies listed on the IDX for the period 2018-2020.

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