The Effect Of Company Size, Profitability, Leverage, And Management Ownership Towards The Level Of Corporate Social Responsibility (CSR) Disclosure

Abstract

The Government has regulated CSR activities through Law No. 40 Year 2007 regarding Limited Liability Company. Mentioned that the company must perform and disclose CSR activities, especially companies that related to natural resources such as mining companies. The objective is to know the effect of company size, profitability, leverage, and management ownership on the level of CSR disclosure of mining companies listed on BEI during the period of 2014-2017. Using secondary data from annual report and financial report. The samples sum up to a total of ten companies with a four-year observation period, resulting in a total of 40 observational data. The method used in this research is multiple linear regression using SPSS 22.0 program. The result of the research shows that (1) firm size has positive effect on CSR disclosure level, (2) profitability and leverage has no effect on CSR disclosure level; (3) management ownership negatively affect CSR disclosure level. This finding contributes to the future research, companies, creditors, investors, and government.

Pengaruh Profitabilitas, Leverage, Kepemilikan Publik dan Institusional Terhadap Pengungkapan Lingkungan

“…Legitimasi dari masyarakat menjadi sebuah faktor strategis sekaligus cara yang dapat dilakukan perusahaan untuk lebih memajukan perusahaannya. Menurut Yuliawati & Sukirman dalam Wardhani et al, (2019) perusahaan besar harus berusaha mendapatkan legitimasi dari masyarakat karena semakin besar perusahaan, semakin banyak orang yang akan terlibat dalam tindakan operasional perusahaan. Perusahaan yang berusaha untuk mendapatkan, mempertahankan atau memperbaiki legitimasi mereka akan memanfaatkan pengungkapan sosial dan lingkungan untuk berkomunikasi dengan para stakeholder (Mousa, et.…”

“…Leverage menjadi alat ukur yang digunakan untuk memperkirakan kapasitas atau kemampuan perusahaan dalam membayar seluruh utang yang dimiliki (Wardhani et al, 2019). Leverage merupakan penggunaan utang perusahaan untuk meningkatkan pendapatan mereka.…”

Determinants of corporate social responsibility disclosure

“…What seems to be the concern in this study relates to the factors affecting CSR disclosure. Several previous studies stated that CSR disclosure is influenced by several variables, including company size (Anasta & Muslim, 2019;Andarsari, 2019;Dias et al, 2019;Dyduch & Krasodomska, 2017;Herleni et al, 2021;Khafid et al, 2018;Mujiyati & Afianto, 2017;Revaldo & Rusmanto, 2020;Salehi et al, 2019;Syed & Butt, 2017;Wardhani et al, 2019), liquidity (Herleni et al, 2021;Lolo & Yuliandhari, 2020;Revaldo & Rusmanto, 2020), leverage (Anasta & Muslim, 2019;Salehi et al, 2019), and profitability (Alabdullah et al, 2019;Lolo & Yuliandhari, 2020;Mudjiyanti & Maulani, 2017;Revaldo & Rusmanto, 2020;Salehi et al, 2019). Due to different results of the previous studies, the researchers intend to investigate the effect of firm size, liquidity, and leverage on CSR disclosure policies.…”

“…Profit is the ability of a company to benefit from the company's operations, in which earning profits and increasing the value of shares are the company's goals (Sugiri & Abdullah, 2003:44). Profitability is a measuring tool used to evaluate a company's performance (Wardhani et al, 2019). Companies with high profits will come under pressure from stakeholders to interpret CSR reports (Revaldo & Rusmanto, 2020).…”

Enhancing Health Awareness Through Community Participation

“…The importance level of CSR is increasing every single day. In Indonesia, the implementation and reporting of CSR are mandatory for some companies as regulated by law (Al-Mamun & Seamer, 2021;Carnahan et al, 2017;Hamid et al, 2020;Putra & Lindrianasari, 2020;Sethi et al, 2017;Wardhani et al, 2019). Based on Government Regulation Number 47 of 2002, companies obliged to implement CSR are limited liability companies that carry out business activities in the field and/or related to natural resources based on the law (Nayenggita et al, 2019;Rahmawati et al, 2020;Zainal, 2019).…”