WAHYUDI, Sugeng (2018) Corporate Social Responsibility on SKI KEHATI Index Corporate Performance: A Case Study. International Journal of Economics and Business Administration, VI (4).

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Abstract

Many companies are now increasingly aware of the importance of implementing Corporate
Social Responsibility (CSR) as part of their business strategy and as the embodiment of the
company's concern to society.

This study specifically examines the SRI-KEHATI Index which is a new index that
specifically includes issuers that have excellent performance in encouraging sustainable
businesses, as well as having awareness of the environment, social and good corporate
governance using an analysis technique that is regression weight in structural equation
modelling used to examine the relationship between the variables.

The model for this research is illustrated by the path diagram. It proves that the environment
influences the company's financial performance, showing that the better the environmental
performance, the respondent will respond positively through the fluctuations in the
company's stock price which can improve the company's financial performance. The higher
the corporate governance, the higher the corporate performance will be.

Corporate Social Responsibility disclosure activities have a significant influence on the
company's financial performance. The higher the social responsibility, the higher the
corporate performance SRI-KEHATI. The strength of the theory of organizational legitimacy
in the content of corporate social responsibility in developing countries has two elements;
first, the capability to place profit maximization motives and second this makes a clearer
picture of the company's motivation to increase its social responsibility.

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