Pengaruh CSR dan GCG Terhadap Profitabilitas

Abstract

The objective of this study is to analyze the effect of Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) on profitability. The research was conducted on manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2017-2019. This study used purposive sampling to determine the study sample, which resulted in 103 companies as the sample obtained. Data were obtained from annual reports and/or CSR reports published on the IDX website www.idx.co.id. The results of data analysis based on Partial Least Square indicated that CSR had no effect on profitability while GCG was found to have effect on profitability. Theoretically, this study confirms previous studies and Agency Theory in terms of the importance of GCG's role in the management of companies to reduce agency problems between investors as principals and managers as agents. In addition, the research implies that manufacturing companies in Indonesia have not fully implemented CSR as can be seen from CSR disclosures in annual reports or separate CSR reports, so as not to affect profitability. Meanwhile, the result of the study implies that the GCG in manufacturing companies has been implemented adequately so that it can affect the profitability of the company.