Company characteristics and CSR disclosure toward environmental performance

Abstract

The term CSR in Indonesia has been known in the 1980s. But long before that, the application of CSR has been carried out as a philanthropic or humanitarian activity, for example, natural disaster assistance, hunger, and scholarships. But in terms of the application on the CSR fund management, the company is considered to merely maintain a reputation for stakeholders. In addition, with the publishing of the regulation Number 40 of 2007 concerning the obligations of Limited Liability Companies, companies were considered to be merely complying with the government regulations. This research aimed to examine the characteristics of the company proxies through Profitability and Environmental Performance as an independent variable on Corporate Social Responsibility Disclosure as the dependent variable. The population of this research was companies registered in the Jakarta Islamic Index (JII) during the period 2013-2017. The data collection used in this research was a purposive sampling method. The data were analyzed using multiple linear regression. The findings of this research revealed that profitability has no effect on CSR because it has a significant level of 0.595 or greater than 0.05 while the environmental performance has an effect on CSR because it has a significant level of 0.012 or less than 0.05. Based on the results of this research, it can be concluded that profitability cannot guarantee that companies will disclose CSR in their financial statements while environmental performance through the Ministry of Environment (KLH) assessment program can have an influence on the disclosure of corporate CSR.