Author(s): Desy Maryani
This study aims to analyze (1) the effect of corporate social responsibility (CSR) disclosure on Return on Asset (ROA), (2) the effect of corporate social responsibility (CSR) disclosure on Return on Equity (ROE), (3) the effect of corporate social disclosure. Responsibility (CSR) to Earning Per Share (EPS) and (4) The effect of corporate social responsibility (CSR) disclosure on Net Profit Margin (NPM) in manufacturing companies listed on the Indonesia Stock Exchange for the period 2018-2019. Corporate Social Responsibility is measured using the CSR index based on the 4th generation Global Reporting Initiative (GRI) (G4). Profitability is measured by Return on Asset (ROA), Return on Equity (ROE), Earning Per Share (EPS) and Net Profit Margin (NPM). The population used in this study are all manufacturing companies listed on the Indonesia Stock Exchange in the 2018-2019 period. The research sample used is a manufacturing company that discloses CSR reports in 2018 and 2019 using a purposive sampling method. There were 78 companies in 2018 and 81 companies in 2019 that met the criteria as research samples. The analytical tool used to test the hypothesis is Partial Least Square (PLS). The results showed that Corporate Social Responsibility (CSR) had a positive and significant effect on profitability by using the proxies for Net Profit Margin (NPM), while using the proxies for Return on Asset (ROA), Return on Equity (ROE) and Earning Per Share (EPS), Corporate Social Responsibility (CSR) has no effect on profitability.