Analysis Corporate Social Responsibility and Environmental Performance Report Forward Financial Performance on Proper Ranking Companies in Indonesia

DOI

10.2991/aebmr.k.200915.062How to use a DOI?

Keywords

corporate social responsibility, environmental performance, return on asset, PROPER, Indonesia

Abstract

Profit is not the sole purpose of the company. An established company must be able to provide benefits to the owners and stakeholders. Therefore, the company must maintain relationships with stakeholders and maintain the sustainability of the existence of resources so that the company grows sustainably along with the benefits for stakeholders and the balance of nature. To that end, companies must carry out Corporate Social Responsibility (CSR) activities as evidence of corporate responsibility to stakeholders and maintain the availability of sustainable natural resources. Therefore, the company will make environmental performance reports, namely Sustainability Reporting, and Financial Statements to shareholders and stakeholders. For this environmental performance, the government will give a rating in environmental management known as PROPER. This research was conducted to see whether the company’s financial performance as measured by Return On Assets is influenced by CSR activities, and Sustainability Reporting for companies that have received PROPER ratings from the government. Research on 45 manufacturing companies listed on the Indonesia Stock Exchange during 2014-2015 shows that CSR activities do not affect financial performance, while Sustainability Reporting has an influence. Thus, manufacturing companies are expected to make CSR activity plans in line with the company’s mission and objectives that are sustainable, and maintain the honesty of sustainability reporting as a control and reference tool to maintain the sustainability of the company’s business.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hendro Lukman
AU  - Rousilita Suhendah
AU  - Jesica Evan
PY  - 2020
DA  - 2020/09/15
TI  - Analysis Corporate Social Responsibility and Environmental Performance Report Forward Financial Performance on Proper Ranking Companies in Indonesia
BT  - Proceedings of the International Conference on Management, Accounting, and Economy (ICMAE 2020)
PB  - Atlantis Press
SP  - 274
EP  - 279
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200915.062
DO  - 10.2991/aebmr.k.200915.062
ID  - Lukman2020
ER  -