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The effect of corporate social responsibility and corporate governance on company’s performance

Author

Listed:
  • Asep Alipudin

    (University of Padjadjaran, Sumedang, Indonesia)

  • Harry Suharman

    (University of Padjadjaran, Sumedang, Indonesia)

Abstract

The aim of this research is to find out the effect of corporate social responsibility and corporate governance on company’s performance on BUMN (State Owned Enterprises) which is registered in Indonesia Stock Exchange in 2012 until 2017. The number of the sample were 14 companies. The phenomenon that occured the performance of State Owned Enterprises with Return on Assets (ROA) indicator was more decreasing from 2012 until 2016. The company does not only pay attention to the business interests but the social responsibility needs to be paid attention to create the added value. There are a lot of things that must be solved in State Own Enterprise, especially in corporate governance. The result of this study is the social responsibility with CSRDij indicator and corporate governance with indicators of Board of Directors, Board of Commissioners, and Audit Committee have significant influence on company’s performance with ROA indicator. But, partially, corporate governance does not affect the company’s performance.

Suggested Citation

  • Asep Alipudin & Harry Suharman, 2019. "The effect of corporate social responsibility and corporate governance on company’s performance," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 5(1), pages 13-25.
    • Handle: RePEc:apb:jabsss:2019:p:13-25
    DOI: 10.20474/jabs-5.1.2
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