Corporate Social Responsibility dan Kinerja Perusahaan (Studi pada Perusahaan Manufaktur yang Listing di BEI Tahun 2016-2017)

Abstract

Research on corporate social responsibility has been done for some time now, however, its effect on firm performance is still inconclusive. Some argue that this conflicting result is due to the difference among the researchers concerning the concept and measure of CSR. This research examines the effect of CSR cost on the performance of manufacturing companies in Indonesia. The population in this research is manufacturing companies listing on the Indonesia Stock Exchange in 2016 and 2017. This research employs a purposive sampling technique. Using 137 samples, the results of the regression analysis test found that the cost of CSR has a negative influence on price to book value. The negative impact of CSR cost on firm performance is perhaps due to the CSR activity that is not in line with its strategic business. These results implied that CSR activity should be done by a firm to sustain the performance, however, those activities should inline with firm strategic business