International Journal of Management and Commerce Innovations ISSN 2348-7585 (Online) Vol. 7, Issue 2, pp: (559-564), Month: October 2019 - March 2020, Available at: www.researchpublish.com
Comparative Analysis of Corporate Social Responsibility Based on Sustainability Report Ni Putu Ema Leonita Andini1, Ni Putu Sri Harta Mimba2 , Made Gede Wirakusuma3, I Gst Ayu Eka Damayanthi4 1,2,3,4 1,2,3,4
Udayana University
Faculty of Economics and Bussiness, Bali, Indonesia
Abstract: POJK No. 51 of 2017 requires financial services institutions, issuers and public companies to carry out social and environmental responsibilities to help realize sustainable development. However, at this time only a few companies reported sustainability reports. There was also one case of a public company that was penalized for not managing pollution properly. So that researchers are interested in conducting research to find out whether POJK is effective in increasing or making a difference in the CSR performance of companies listed on the Indonesia Stock Exchange. This study aims to determine whether there are differences in the performance of corporate social responsibility after the issuance of POJK NO. 51 of 2017 based on the evaluation of sustainability report. Regulatory theory is used in this study as a grand theory. The population of this study are companies listed on the Indonesia Stock Exchange in 2017-2018. The sample in this study was taken using a purposive sampling technique that is the sampling technique with certain considerations. Data were collected using a non-participant observation method. The analysis technique used in this study is Paired Sample t-Test Based on the results of the analysis, it was found that there were differences in the disclosure of corporate social responsibility performance when the POJK No. 51 of 2017. Keywords: Sustainability reporting, corporate social responsibility performance, regulatory theory, POJK No. 51 of 2017.
I. INTRODUCTION POJK No. 51 of 2017 requires financial services institutions, issuers and public companies to carry out social and environmental responsibility. POJK No. 51 of 2017 requires financial services institutions, issuers and public companies to carry out social and environmental responsibility which is a commitment to participate in sustainable economic development in order to improve the quality of life and the environment that is beneficial, both for the company itself, the local community, and society in general [1]. POJK No. 51 of 2017 is the application of regulatory theory, namely public interest theory, where with this regulation the government hopes that financial institutions, issuers and public companies will pay attention to sustainable development that also pays attention to the environment. Public interest theory explains that regulations must be able to maximize social welfare according to Scott [13]. POJK No. 51 of 2017 is one form of the application of stakeholder theory in Indonesia. The stronger stakeholder pressure in terms of disclosure of CSR practices by companies causes the need to incorporate social elements in corporate responsibility into accounting [2]. The company also must take responsibility for the environment specifically where it currently operates [3]. Companies can benefit by engaging positively with their various stakeholders, both internal and external, such as employees, board members, communities, working families and so on, and by caring for the environment in which they operate [4]. Some CSR reports reveal information about customer satisfaction and supplier relationships, which can help investors assess the credibility of reported financial income [5]. Disclosure of corporate social responsibility is expected so that the company can manage stakeholder information, so that stakeholder support is
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