PERAN ISLAMIC CORPORATE RESPONSIBILITY DAN GOOD CORPORATE GOVERNANCE DALAM INDUSTRI KEUANGAN SYARIAH

Abstract

Corporate Social Responsibility (CSR) program is a corporate initiative to ensure that its operations have a beneficial impact on society. In addition, the implementation of an effective sharia governance structure, especially the Sharia Supervisory Board (SSB), is a significant challenge for the sharia industry. Existing research on sharia governance in the Indonesian sharia banking and finance sector is limited, so further investigation is needed in this domain. The purpose of this study is to determine how CSR and GCG affect firm value and whether profitability makes CSR and GCG play a role in the sharia finance industry. Using Smart PLS 4.0, this study found that CSR and GCG greatly improve Company performance. This study utilizes financial data from a population of sharia financial sector companies with a sample of 25 consisting of Sharia Commercial Banks, Sharia Insurance, Sharia Ventures and Sharia Pawnshops registered with the OJK in 2020-2021.