The Effect Of Good Corporate Governance, Corporate Social Responsibility On Corporate Profitability

Abstract

The company's profitability is an important thing that companies use to evaluate the company's performance in a period, because profitability is a reflection of the company's ability to manage and allocate its resources. Good Corporate Governance is good corporate governance, which explains the relationship between various participants in the company that determines the direction of the company's financial performance. Disclosure of Corporate Social Responsibility is that Corporate Social Responsibility (CSR) is a form of corporate social responsibility towards the environment and the surrounding community. The purpose of this study is to prove whether Good Corporate Governance and Corporate Social Responsibility affect the company's profitability. The research was conducted on manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange for the 2017-2020 period. Analysis of the data model used in this study is a multiple linear regression model using SPSS 22. Data analysis uses the classical assumption test, namely the data normality test, multicollinearity test, autocorrelation test and hiteroscedasticity test. As well as t test and f test. The results showed that there was no effect of the Board of Directors and the Audit Committee on the company's profitability. But the Independent Commissioner and CSR have a significant positive effect on profitability. Company profitability as measured by return on assets.