Abstract
This study aims to examine the influence of Corporate Social Responsibility on Profitability. The population in this study used a sample of 40 manufacturing companies on the Indonesia Stock Exchange (IDX) from 2016-2020. The method used in this research is purposive sampling which is taken with certain criteria. Profitability is measured by the Return on Asset (ROA) formula. The data analysis method used is Descriptive Statistics, Multiple Regression Analysis, and Classical Assumption Test, while the Hypothesis Test used is Partial Test, Simultaneous Test, as well as Test of Determination. The results of this study indicate that Corporate Social Responsibility Economic Indicators have a positive influence on Profitability as evidenced by a significant value of 0,013, while Corporate Social Responsibility Environmental Indicators do not have a positive effect on Profitability as evidenced by a significant value of 0,949. Meanwhile, Corporate Social Responsibility economic and environmental indicators simultaneously has a positive influence on profitability as proven by a significant value of 0.036, and R square (R^2) which obtained 11% Profitability which can be influenced by Economic and Environmental Corporate Social Responsibility and 89% is influenced by other factors outside the study.
Highlights
The following are the steps in determining the T test: 1) Determining the Formulation of Statistical Hypotheses: H01: There is no significant influence between X1 on Y Ha1: There is a significant influence between X1 on Y H02: There is no significant influence between X2 on Y Ha2: There is a significant influence between X2 on Y
H03: There is no significant influence between X1 and X2 simultaneously on Y Ha3: There is a significant influence between X1 and X2 simultaneously on Y 2) Determine the significance level of alpha (α) and F table or significant value a
Ha is accepted and H0 is rejected if the significant value in the output table is < 5% alpha or the value of F statistic > F table in the output results b
Summary
A rise in popularity for companies to be responsible and care for the environment and society has occurred in this period of globalization as a result of people realizing the relevance of the effects of production factors and development undertaken by companies. Most businesses are unaware of the necessity of fulfilling their obligations to the community and the environment, and they believe that doing so will add to their financial burden and result in significant outlays (Putra, 2015b). This is based on the circulating issue that in the CSR Bill, there will be a benchmark for the amount of CSR funds that must be issued by the company, namely 2%, 2.5%, or 3 (Nasional, 2018). Unilever Indonesia, which carries out Green and Clean by recycling used bags of Unilever products and empowering black
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