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Abstract
The background of this research is Indonesian companies are still voluntarily using GRI compare to other countries' cases. The main thing is that the limited number of companies that use GRI can affect its performance. The organization's performance describes the company's financial ratios as one of the effective financial performance descriptions. This is related to economic factors that are internal to the company, such as GRI, CSR, and ESG. The purpose of this study was discussed because of the limited number of listed companies in Indonesia (listed in IDX) using the GRI G4 method globally, which is one of the highlights of this research. The data used for 4 years, namely 2016-2019 in Indonesia. This research methodology uses panel data regression. This study uses secondary data, namely from the company's financial statements and database streams (Thomson Reuters Eikon). The results of the study prove that GRI affects financial ratios. The same result also occurs in other variables, namely ESG affects financial ratios (ROA). The controversy is that companies that have been listed must pay more attention to developments in items in GRI to gain trust from foreign investors and confidence in the company's sustainability.
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References
- Angelia, D., & Suryaningsih, R. (2015). The Effect of Environmental Performance And Corporate Social Responsibility Disclosure Towards Financial Performance (Case Study to Manufacture, Infrastructure, And Service Companies That Listed At ISE (September),. Procedia - Social and Behavioral Sciences. 211,348–355. doi: https://doi.org/10.1016/j.sbspro.2015.11.045
- Fleege, E., Adrian, E., (2004). The implementation of corporate ethics: a comparative study between Motorola and Ericsson. J. Undergrad, 7 (9).
- Forte, A., (2013). Corporate Social Responsibility in the United States and Europe: How Important is it? The Future of Corporate Responsibility. International Business and Economics Journal, 12 (7), 815–824.
- Fuente, J. A., & García-s, I. M. (2017). The role of the board of directors in the adoption of GRI guidelines for the disclosure of CSR information, 141. Journal of Cleaner Production. 141, Pages 737-750. doi: https://doi.org/10.1016/j.jclepro.2016.09.155
- Gamerschlag, R., Möller, K., & Verbeeten, F. (2011). Determinants of voluntary CSR disclosure: empirical evidence from Germany. Review of Managerial Science, 5 (2), 233-262. https://doi.org/10.1007/s11846-010-0052-3
- García-Sánchez, I. M., Frías-Aceituno, J. V., & Rodríguez-Domínguez, L. (2013). Determinants of corporate social disclosure in Spanish local governments. Journal of Cleaner Production, 39, 60–72. https://doi.org/10.1016/j.jclepro.2012.08.037
- Greening, D. W. (1994). Testing a model of organizational response to social and political issues. Academy of Management Journal, 37(3), 467–498.
- GRI Standards. (2016). The Future Of Reporting Introducing the GRI Standards (Director: Buck & Reinhardt). October 2016. GRI Standards International.
- Lambooy, T., (2010). Institutionalization of Corporate Social Responsibility in the Corporate Governance Code: The New Trend of the Dutch Model. Emerald Group Publishing Limited.
- Mishra, S., Suar, D., (2010). Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?. Journal of Business Ethics, 95 (4), 571–601.
- Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515.
- Portney, P. R. (2008). The (not so) new corporate social responsibility: An empirical perspective. Review of Environmental Economics and Policy, 2, 261.
- Sassen, R., Hinze, A.K., Hardeck, I., (2016). Impact of ESG factors on firm risk in Europe. J. Bus. Econ, Journal of Business Economics. 86 (867–904). Doi: http://dx.doi.org/10.1007/s11573-016-0819-3
- Skare & Golja, T. (2014). The impact of government CSR supporting policies on economic growth. Journal of Policy Modeling 36 (3) 562–577. Doi: https://doi.org/10.1016/j.jpolmod.2014.01.008
- Syahnaz, Melisa. (2013). “Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Perbankan”. Jurnal Ilmiah Mahasiswa FEB, 1(2).
- Thomson Reuters (2020). Financial Datastream: Thomson Reuters Eikon Application. Limited Access: Universitas Indonesia. Online Access : July, 21-30th, 2020.
References
Angelia, D., & Suryaningsih, R. (2015). The Effect of Environmental Performance And Corporate Social Responsibility Disclosure Towards Financial Performance (Case Study to Manufacture, Infrastructure, And Service Companies That Listed At ISE (September),. Procedia - Social and Behavioral Sciences. 211,348–355. doi: https://doi.org/10.1016/j.sbspro.2015.11.045
Fleege, E., Adrian, E., (2004). The implementation of corporate ethics: a comparative study between Motorola and Ericsson. J. Undergrad, 7 (9).
Forte, A., (2013). Corporate Social Responsibility in the United States and Europe: How Important is it? The Future of Corporate Responsibility. International Business and Economics Journal, 12 (7), 815–824.
Fuente, J. A., & García-s, I. M. (2017). The role of the board of directors in the adoption of GRI guidelines for the disclosure of CSR information, 141. Journal of Cleaner Production. 141, Pages 737-750. doi: https://doi.org/10.1016/j.jclepro.2016.09.155
Gamerschlag, R., Möller, K., & Verbeeten, F. (2011). Determinants of voluntary CSR disclosure: empirical evidence from Germany. Review of Managerial Science, 5 (2), 233-262. https://doi.org/10.1007/s11846-010-0052-3
García-Sánchez, I. M., Frías-Aceituno, J. V., & Rodríguez-Domínguez, L. (2013). Determinants of corporate social disclosure in Spanish local governments. Journal of Cleaner Production, 39, 60–72. https://doi.org/10.1016/j.jclepro.2012.08.037
Greening, D. W. (1994). Testing a model of organizational response to social and political issues. Academy of Management Journal, 37(3), 467–498.
GRI Standards. (2016). The Future Of Reporting Introducing the GRI Standards (Director: Buck & Reinhardt). October 2016. GRI Standards International.
Lambooy, T., (2010). Institutionalization of Corporate Social Responsibility in the Corporate Governance Code: The New Trend of the Dutch Model. Emerald Group Publishing Limited.
Mishra, S., Suar, D., (2010). Does Corporate Social Responsibility Influence Firm Performance of Indian Companies?. Journal of Business Ethics, 95 (4), 571–601.
Oikonomou, I., Brooks, C., & Pavelin, S. (2012). The impact of corporate social performance on financial risk and utility: A longitudinal analysis. Financial Management, 41(2), 483–515.
Portney, P. R. (2008). The (not so) new corporate social responsibility: An empirical perspective. Review of Environmental Economics and Policy, 2, 261.
Sassen, R., Hinze, A.K., Hardeck, I., (2016). Impact of ESG factors on firm risk in Europe. J. Bus. Econ, Journal of Business Economics. 86 (867–904). Doi: http://dx.doi.org/10.1007/s11573-016-0819-3
Skare & Golja, T. (2014). The impact of government CSR supporting policies on economic growth. Journal of Policy Modeling 36 (3) 562–577. Doi: https://doi.org/10.1016/j.jpolmod.2014.01.008
Syahnaz, Melisa. (2013). “Pengaruh Corporate Social Responsibility Terhadap Kinerja Keuangan Perusahaan Perbankan”. Jurnal Ilmiah Mahasiswa FEB, 1(2).
Thomson Reuters (2020). Financial Datastream: Thomson Reuters Eikon Application. Limited Access: Universitas Indonesia. Online Access : July, 21-30th, 2020.