Disclosure of Corporate Social Responsibility (Csr) and Its Effect to the Financial Performance of Sharia Banks in Indonesia

Abstract

This study aims to determine the effect of CSR disclosure information in the annual report of Sharia banks in Indonesia totheir financial performance as measured by profitability ratios. This research function as an input for the company in thelong term, that CSR is not as a burden for the company, and through CSR, the financial the performance of the companydescribed through profitability ratios has, in fact, increased. The analysis method used is structural equation modeling withWapPLS ver.4.0 program. The results showed that CSR disclosure had a positive and significant effect on the financialperformance of Sharia bank in Indonesia with p-value 0.03 <0.05. Bank Muamalat and BNI Syariah are banks that have thehighest average in CSR disclosure of companies. Furthermore, the dimensions often disclosed in corporate CSR of Shariabanks in Indonesia are energy, environmental, and product dimensions