The Effect of Corporate Social Responsibility (CSR) and Good Corporate Governance (GCG) on Financial Performance

Abstract

This study aims to analyze the effect of Corporate Social Responsibility (CSR) and Good
Corporate Governance (GCG) on the financial performance of food and beverage
subsector companies listed on the Indonesia Stock Exchange during 2022-2024.
Financial performance is measured using Return on Assets (ROA), while CSR is
measured using the disclosure index based on GRI Standards 2021. GCG is proxied by
the proportion of independent commissioners and the number of audit committee
members. This study uses a quantitative approach with secondary data obtained from
annual reports, financial statements, and sustainability reports. The sample was
selected using purposive sampling and analyzed using multiple linear regression. The
results show that CSR has a positive and significant effect on ROA. Meanwhile,
independent commissioners and audit committees have no significant effect on ROA.
These findings indicate that CSR disclosure can support financial performance, while
GCG mechanisms require more effective implementation to improve company
profitability.