GCG and ROE on CSR Based on Shari’ah Enterprises Theory with Size as Control Variable at Shari’ah Banks

The purpose of this paper is to investigate the corporate social responsibility (CSR) reporting information of Indonesia shari’ah banks based on Shari’ah Enterprise Theory and explore the potential effects of corporate governance (CG) elements and ROE on CSR with size as the moderating variable. Agency theory, Legitimacy theory, Stakeholders theory, and Shari’ah Enterprise theory will be employed as underpinning theories. Using a sample of 10 shari’ah banks which published annual reports, CG, and CSR reports for the year 2014 to 2016, multiple regression analysis reveals that CG affects shari’ah banks to do CSR, yet ROE did not impact CSR. Aggregately, GCG and ROE influence CSR. Size as the moderating variable significantly strengthens the effect of CG and ROE on CSR with F of 5.419 and adj. R2 of 47.8%. This study makes a significant contribution to Corporate Social Responsibility (CSR) and enterprise theory by offering Shari’ah Enterprise theory as the foundation for the CSR implementation at shari’ah banks in Indonesia.