PENGARUH FAMILY FIRM TERHADAP PELAKSANAAN CORPORATE SOCIAL RESPONSIBILITY : COPORATE GOVERNANCE SEBAGAI MODERASI

Abstract

The purpose of this study is to empirically examine the influence of family firms on environmental strength and environmental concern in implementing corporate social responsibility (CSR). This study will also examine how the family firm interacts with family members as the board of directors and the interaction between family firms and independent commissioners on environmental strength and environmental concerns in implementing CSR, by including firm size and firm age as control variables. This research is a quantitative research. The data is obtained from the annual reports of manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. The sample was obtained using purposive sampling technique, the total sample was 154 company years. CSR implementation is measured using indicators of environmental strength and environmental concern. Family ownership is measured using the proportion of shares owned by the family. Family members who serve on the board of directors are measured using the proportion of family members who are on the board of directors. Independent Commissioners are measured using the proportion of independent commissioners on the board of commissioners. Firm size is measured using the natural logarithm of total assets. Company age is measured using the length of the company since its establishment until the year of research. Data analysis in this study used multiple regression tests and Moderated Regression Analysis (MRA) using the IBM SPSS ver. 22. The results show that family ownership has a significant positive effect on environmental strength and environmental concern in implementing CSR. The higher the family share ownership in the company, the higher the level of CSR implementation of the company, for this reason CSR implementation in family companies needs to be increased so that the company gets the legitimacy of the survival of the stakeholders. Variable of family members as independent directors and commissioners does not strengthen or weaken the effect of family ownership on CSR disclosure. Keywords: Family firm, environmental strength and environmental concern