Open AccessTHE ROLE OF CORPORATE SOCIAL RESPONSIBILITY AS MEDIATION IN INDONESIA
Author(s) -
Rintan Nuzul Ainy,
Khusnul Hidayah
Publication year - 2019
Publication title -
muhammadiyah international journal of economics and business
Language(s) - English
Resource type - Journals
ISSN - 2685-7405
DOI - 10.23917/mijeb.v2i1.9372
Subject(s) - corporate governance , stakeholder , corporate social responsibility , business , accounting , mediation , quality (philosophy) , index (typography) , public relations , political science , finance , philosophy , epistemology , world wide web , computer science , law
This study examines the direct and indirect relationships between the quality of corporate governance and company performance with CSR as mediation. A better quality of corporate governance means the more fulfilled of stakeholder’s interest so that it will give positive impact on the company performance. Data of corporate governance quality and CSR were obtained by carrying out a content analysis on the company’s annual report for 2016. The analysis was done based on a template developed by the Forum for Corporate Governance in Indonesia (FCGI) and GRI Index. The results show that companies that disclose information about CSR activities have better performance than those that do not perform it. Such information is considered as a sign that the company has fulfilled all stakeholders’ interests. Furthermore, the results also show that corporate governance quality does not affect the level of company performance. Nevertheless, this research cannot prove the indirect relationship of CSR on the interaction between corporate governance and company performance in Indonesia.