The Effect Of Profitability (ROA, ROE, NPM) On The Disclosure Of Corporate Social Responsibility (Study on Cement Sub Sector Manufacturing Companies Listed on BEI in 2012-2014)

Abstract

This research aims to find out the influence of profitablitiy on the disclosure of Corporate Social Responsibility. This research uses secondary data. This research is done by examining the influence of the profitability as an independent variable on the CSR disclosure as a dependent variable. The profitability ratio on this research used as an independent variable is ROA (Return On Asset), ROE (Return On Equity), and NPM (Net Profit Margin) while the CSR disclosure used as a dependent variable is measured by using an instrument referred to GRI (Global reporting Initiative) 2006 as a guidance to the disclosure of companies’ social reports. The sample collecting is done by using a sampling purposive technique meaning that the selected samples are based on some certain criteria. The analysis technique used in this research is a multiple linear regression analysis where the previous data have been examined by using a classical assumption including data normality, heteroskedasticity and autocorrelation. The research result shows that the profitability that is paired with ROA and ROE indicates a partially significant influence on the CSR disclosure while NPM does not give any influence on the CSR disclosure.