Corporate Social Responsibility Performance and Bank Soundness in Indonesia: Should The Industry Be More Socially Responsible?
Rofikoh Rokhim & Winalda Ajaniara Perdana
Department of Management, Faculty of Economics and Business, Universitas Indonesia
Abstract
This study investigates the impact of corporate social responsibility performance on banks soundness in Indonesian bank during period 2008-2016. Using the OECD standards as CSR scoring indicator, this study found that corporate social responsibility performance have positive impact on banks profitability performance. CSR may affect both the cost and revenue. Although costs increase, revenues increase even more. Therefore, banks in Indonesia have to improve its CSR performance in order to increase its financial performance.
Keywords: corporate social responsibility, bank soundness, Indonesia
Topic: Finance