The Impact of Corporate Social Responsibility on the Performance of Companies Listed in the LQ-45 Index on the Indonesia Stock Exchange

Abstract

A company's responsibility towards its social environment is currently being widely discussed. This is also emphasized by the proliferation of research from various corners and various fields that acknowledge that their companies have carried out social responsibility. This study is intended to analyze and test the contribution of Corporate Social Responsibility to the Performance of Companies Listed on the Indonesia Stock Exchange for the 2014-2018 Period by referring to the published Annual Reports of LQ-45 Index Companies. This study uses secondary data in the form of company CSR reports and company annual reports. The sample used in this study is the LQ-45 index companies listed on the Indonesia Stock Exchange for the 2014-2018 period. The sample determination uses purposive sampling. The total sample used is 33 companies with 5 years of observation each, so that the total observed data is 165. The data is then reviewed and processed using multiple linear regression using the SPSS program. The research findings show that corporate social responsibility as seen from economic, environmental and social indicators provides a real contribution to corporate performance. Corporations and leaders should pay attention to various decisions and policies so that they can serve as a reference in determining strategies to maximize company performance.