Impact of Corporate Social Responsibility (CSR) Implementation on The Profitability of State-Owned Enterprises: An Analysis of 20 Listed Companies in Indonesia

Abstract

The purpose ofthis research is to prove that State-Owned Enterprises (SOEs) that invest in CSR will optimize proit in the hope that the
satisfaction of stakeholders is reached effectively. This paper is a quantitative analysis of an exploratory approach. Discusses the
implementation of CSR from 20 state-owned companies is go public companies. This analysis is based on the Global Reporting Initiative
report which provides some aspects of sustainability.The reports were taken from the availability both CSR and inancial data.The next
step is to look at the EPS trend of these SOEs and comparing to those aspects are applied. The restrictions coverage of this paper is only for
20 state-owned companies which listed in Indonesia.In this research proves that the implementation ofCSR has not yet become the burden
ofSOEs but can also give the proit growth ofthose SOEs. Where there is a positive relationship between the implementation of CSR and the
Earning Per Share (EPS) with coeficient correlation (R) is 0.110, even the tendency ofincreasingly integrated CSR programs grow the proit
of SOEs. There is the theoretical implication to management science that the implementation of CSR is not a burdening cost but is an
investment and CSR is one ofmany ways for companies to increase business competitiveness in the present era. Also, there is the
managerial implication that by implementation CSR is very important to have a mutual beneit between society and corporation while SOEs
still can optimize some proit. This understanding is essential as a high concentration in social and corporate relations in modern times.