Indonesia Conference Directory

Introduction: what is CSR? & why it matters? Since 2017, public companies in Indonesia are required to pay attention to the social and environmental interests that play a role in helping a companys business in a sustainable context. The program is reported in the form of a sustainable financial report or commonly called a sustainability report. In the international world, sustainability report can be used as a company transparency regarding the impact of the business to environment and social, such as climate change and human rights. In addition to corporate transparency, sustainability reports also help companies make better decisions related to the companys social, environmental and economic aspects. One part that include in sustainability report is the disclosure of corporate social responsibility or usually called CSR. The definition of CSR based on the EU Commission is the concept in which companies integrate social and environmental care in their business operations activities and company interactions with stakeholders (Aras and Crowther, 2008). The application of CSR in the company began in 1970, many experts began to realize the influence and important reasons why companies need to implement CSR. The importance of companies implementing CSR is also explained through the statement by Burke & Logsdon (1996) that in the short term CSR tends to incur costs but this will have an impact on corporate profits in the long run. From the external side according to Howard R.Bowen in Melé (2008), CSR is a reflection of the responsibility of employers on the environment and social. The experts also suggest that one of the roles of accounting should be to report on the impact of the activities of the organization or company. In accordance with the information of Ballou & Heitger (2005), CSR is one of the methods used by companies to present transparent reports, accurate and reliable data, as well as present performance company as a whole. The conclusion of the importance of companies implementing CSR is as a real disclosure of corporate responsibility due to the impact of business activities. In addition, CSR also supports the long-term sustainability of business activities and forms of transparency to stakeholders. In Indonesia we used GRI sustainability reporting guidelines- G4 issued in last May 2013. The guidelines which contain 91 point of disclosure, helps to provide an international reference for all parties interested in the disclosure of corporate governance and environmental, social and economic performance approaches and organizational impacts. This research will limit the discussion about the effect of CSR disclosure on firm value, with profitability (ROE) as a moderating variable that happened in bank industry. Methods This research used a secondary data, which are provided in Bursa Efek Indonesia (www.idx.co.id) and the company website. The period used in this research start from 2014 until 2018. For analyzing da