How Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) Shapes Perceptions of Financial and Non Financial Performance

Abstract

Many prior research studies have analyzed and discussed Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) separately. The purpose of this study is to analyze whether there is an effect of CSR and GCG on Company Performance, Corporate Financial Performance and Non-Financial Performance of the Company both separately and jointly. The sample in this study is that all companies listed on the Indonesia Stock Exchange are based on the 2015 Indonesian Stock Exchange (IDX) Fact Book which amounted to 379 companies and companies that are not listed on the Indonesia Stock Exchange that implement CSR programs and apply selected GCG principles at random. The method used in this study is multiple regression analysis. The statistical test uses the SPSS Ver 21 application program.

The test results partially show that each of the CSR and GCG variables has a positive influence on Company Performance, Corporate Financial Performance and Non-Financial Performance of the Company while the detailed results of the test are partial on each dimension of CSR and GCC on Company Performance, Corporate Financial Performance and The Non-Financial Performance of the Company found that in the CSR variables in the Group of Corporate Performance, Corporate Financial Performance and Non-Financial Performance of the Company, the dimensions that positively influence are only on the NGO dimension and on the GCG variables in the Company Performance, Corporate Financial Performance and Non-Financial Performance Companies, the dimensions that have a positive effect are found only in the dimensions of discipline.