Factors influencing the practice of corporate social responsibility in Indonesia

Gozales, Caroline (2019) Factors influencing the practice of corporate social responsibility in Indonesia. Bachelor thesis, Universitas Pelita Harapan.

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Abstract

Corporate social responsibility is a commitment of the company in doing good activities in order to welfare the employees, society, and investors. Besides, it also focuses on the balance attention to economic, social and environmental. This research aims to find empirical evidence about factors influencing the practice of corporate social responsibility in Indonesia. The type of research is quantitative method and the research design is causal-comparative research. The independent variables are profitability (return on assets), firm size, and public ownership. While, the dependent variable is corporate social responsibility. The sample in this research were taken by using purposive sampling which had some criteria and obtained 30 samples of food and beverages sector listed on Indonesia Stock Exchange. The period used in this research is from 2015-2017. The result of fit test indicated that profitability (return on assets), firm size and public ownership have fit on corporate social responsibility. Meanwhile, the result of significant effect test showed that profitability (return on assets) and firm size have positive significant effect on corporate social responsibility. And then public ownership have negative significant effect on corporate social responsibility. The recommendation of this research are: for the company side, it is good to voluntary do corporate social responsibility and disclose the programs are more complete. For government side, this corporate social responsibility must be a mandatory action for all companies. For investors, it is good to pay attention to this disclosure. Lastly, for future researcher, it is good to add other sector and year of research.

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