IJSR - International Journal of Scientific Research

Muhammad Nuruddin Subhan; Supriadi Thalib

Volume : VIII, Issue : VI, June - 2019

SOCIAL AND ENVIRONMENTAL COST, THEIR CONTRIBUTION TO CORPORATE FINANCIAL PERFORMANCE OF PT. ANEKA TAMBANG

Muhammad Nuruddin Subhan, Supriadi Thalib

Abstract :

In Indonesia, the awareness of the need to protect the environment is governed by Undang–Undang Perseroan Terbatas No. 40 of Article 74 of 2007, whereby companies engaged in business in the field of natural resources are obliged to carry out social and environmental responsibility. Therefore, to see the positive benefits to the company, an analysis of the role of corporate social responsibility (social cost and environmental cost) to the financial performance of one company in Indonesia, namely PT ANEKA TAMBANG (ANTAM), Tbk, a case study. Corporate social responsibility (CSR) is an important process in managing the costs and benefits of business activities with stakeholders both internally (workers, shareholders and investors) and externally (government, society and other companies), not limited to the concept of donor giving, but the concept is very oad and not static and passive, but it is the rights and obligations that are shared among stakeholders. This research uses quantitative analysis to determine the relationship between social cost and company environmental cost with corporate financial performance (profit). The social cost of PT. ANTAM have significant effect on corporate financial performance (profit) and environmental cost of PT. ANTAM have a significant effect on corporate financial performance (profit).