The Effect of CSR Disclosure on the Financial Performance of Mining Companies in the IDX-IC Classification

Abstract

The mining industry faces high transparency demands because its operational activities are directly related to the use of natural resources and have social and environmental risks. This study aims to examine the effect of Corporate Social Responsibility (CSR) disclosure on financial performance proxied by Return on Assets (ROA) and Return on Equity (ROE). The research uses a quantitative approach with secondary data obtained from the annual reports, sustainability reports, and financial statements of mining companies in the IDX-IC classification for the period 2020–2024. The sample was determined through purposive sampling and produced 30 companies or 150 company–year observations. CSR disclosure was measured using content analysis based on 117 items of the GRI Standards 2021. The results of the multivariate test showed that CSR disclosure had a significant effect on financial performance as measured through ROA and ROE in a single multivariate model. In the testing of each proxy, CSR disclosure had a positive and significant effect on ROA and ROE. These findings show that the wider the CSR disclosure, the better the tendency of the mining company's financial performance, both in asset utilization and return on equity.