Abstract: Many cases in companies are caused by company activities that have an impact on society and the environment around the company which can affect the company's image to be bad. Disclosure of corporate social responsibility can be carried out by companies to respond to the impacts that arise and get legitimacy from the community and stakeholders. The purpose of this study was to analyze the effect of operational diversification on the disclosure of corporate social responsibility with foreign ownership, profitability, and company size as control variables. This research was conducted on companies listed on the Indonesia Stock Exchange in 2018 which disclose corporate social responsibility in the annual report. The sample is 223 companies with method probability sampling. The data used are secondary data. The data analysis technique used is quantile regression. Based on the results of quantile regression analysis of 0.2, it was found that operational diversification and profitability had a positive and significant effect on the disclosure of corporate social responsibility. Company size has a negative and significant effect on disclosure of corporate social responsibility. Meanwhile, foreign ownership has no effect on disclosure of corporate social responsibility. The results of this study can serve as a guide for companies in expanding the disclosure of corporate social responsibility for the sustainability of the company and as a consideration for stakeholders in making decisions.
Keywords: Corporate social responsibility (CSR), Operational diversification, Foreign ownership, Profitability, Company Size.
Title: The Effect of Operating Diversification on Corporate Social Responsibility Disclosure
Author: Graciela Immanuelita, Dewa Gede Wirama, Ni Made Dwi Ratnadi, I Ketut Suryanawa
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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