determinant on islamic social reporting in islamic banking...
TRANSCRIPT
International Conference of Global Islamic Studies 2014
89
Determinant on Islamic Social Reporting in Islamic Banking (Case Study in
Indonesia)
MUHAMMAD PRAKOSO PUTRA1
mprakosoputrayahoocom
ERIKA TAKIDAH2
erikatakidahunjacid
M YASSER ARAFAT3
aa71_2001yahoocom
1(student of undergraduated program Accounting Department Faculty of Economics
State University of Jakarta Jakarta Indonesia) 2(Lecturer Economics and Administration Department Faculty of Economics State
University of Jakarta Jakarta Indonesia) 3(Lecturer Accounting Department Faculty of Economics State University of
Jakarta Jakarta Indonesia)
Abstract
Islamic Bank in Indonesia have grown significantly in 2000 indinesia only have two
islamic bank in the 2012 indonesia have eleven islamic bank The growth of islamic
bank in indonesia is because people trust if islamic bank is appropriate with al-quran
and al-hadist Beside of that islamic bank also have grown significantly in revenue
from year to year
Islamic bank in indonesia must report they social reporting as in Undang-Undang
(regulation) number 25 year 2007 But in the aplication they just inform some item
like they only want to fulfil the regulation to avoid the sanctions Whereas in islam
rule islamic bank must to do social balance with their activities to get profit
This research is to find influence of firm characteristic and corporate governance to
disclosure of islamic social reporting This resultant hypotheses are tested on a sample
11 islamic bankrsquos annual report in year 2012
Keywords islamic social reporting disclosure profitablity leverage liquidity firm
size corporate governanve
International Conference of Global Islamic Studies 2014
90
1 Introduction
Natural phenomena that occur such as mudslides forest fires and global warming may
be a natural occurrence that is triggered due to human actions As was written in
Quran Ar-Rum 41 has appeared on the damage land and in the sea due to human
actions that God may feel to them most of (due to) their actions so they return to the
right path Besides to worship in the world humans by nature were created by God
as khalifah on earth human beings have a duty to utilize manage and maintain the
universe for the benefit and welfare of life But greed and ill-treatment against human
nature itself can cause damage to the nature This is reflected by the current natural
conditions This is related to the concept of the government to the company to carry
out its social responsibility
Corporate Social Responsiility (CSR) is a concept that is being developed in various
countries Awareness of the importance of the implementation of CSR (Corporate
Social Responsibility) into a global trend along with the rise of global public
awareness of the products that are environmentally friendly and are produced with
care for the environment and social One purpose of the company revealeds
environmental performance social and financial annual report or in a separate report
is to reflect the level of accountability responsibility and corporate transparency to
investors and other stakeholders The disclosure aims to establish a good relationship
and effective communication between the company and the public and other
stakeholders about how the company has integrated CSR and social environment in
every aspect
These companies utilize social report as a platform to attract investors to look good
records Integration in CSR reports Most of the companies vying to be the best in
carrying out social activities are reported as either their company good records But
On the other hand there is a condition which contrasts with other companies Based
on research conducted by the International Institute of Islamic Thought (IIIT) in 1996
indicated that the Islamic banks are not fully run in accordance with the demands of
social role of Islam A total of 32 Islamic banks in the world to prioritize economic
goals than social goals with an indication that the economic criteria are preferred than
social criteria when evaluating investment opportunities (Maali et al 2003 cite in
Chariri 2012)
Islamic banking have the principles of Islam in all its aspects it means that any
activity undertaken by Islamic banks based on Al-Quran and Al-Hadith So that
became the basis for the actors to interact between people and environments By
doing so the reporting activity must be based on Islamic principles Because
according to AAOIFI (Accounting and Auditing Organization for Islamic Financial
Institutions) Islamic banking as well as Islamic financial institutions must report their
social responsibility
Related to disclosure of social responsibility for Islamic banking recently discussed
the Islamic Social Reporting Index (hereinafter referred to as the index ISR) ISR
Index contains the points that describe corporate social responsibility set by AAOIFI
(Accounting and Auditing Organization for Islamic Financial Institutions) are then
developed further by researchers on CSR items that should be disclosed by an Islamic
entity The CSR Index will become a reference in the Islamic perspective on CSR
International Conference of Global Islamic Studies 2014
91
The lack of research on the implementation of the ISR index sharia banks in
Indonesia Creating interested researchers to examine more deeply Given the Islamic
banking industry in Indonesia is growing quite rapidly plus with the disclosure of
CSR issues are increasing this study tries to look at what are the factors that influence
the disclosure of ISR in Islamic banks
This research was aimed to identify factors affecting the disclosure of ISR of Syariah
banks in Indonesia ISR in the annual report significantly associated with company
size profitability solvency liquidity and good corporate governance Solvency ratio
or commonly referred to leverage research results show that diverse The results
indicate that the variable is not significant leverage on social responsibility (SR)
disclosure expressed by Sembiring (2005) Research Anggraini (2006) find that
leverage does not influence companys SR disclosure Another factor is that used
effects the companys liquidity Research liquidity effect also varied according to
Arthana 2012 Kamil and Herusetya (2012) liquidity does not affect the disclosure of
corporate social responsibility The next factor affecting corporate social disclosure is
the profitability of the company The difference was the result of these factors vary
according to several studies According Sembiring (2005) but did not significantly
affect the profitability of the corporate social responsibility disclosure According
Princess and Christiawan (2014) and Kamil and Herusetya (2012) does not affect the
profitability of corporate social responsibility disclosure Another factor affecting the
disclosure of corporate social responsibility is good corporate governance by Chariri
2012 GCG is represented by commissioners and sharia supervisory board still not can
improve with better oversight mechanisms to encourage CSR is widely Because of
the many research on the influence of corporate social responsibility disclosure with
different results the researchers wanted to clarify the results of research on the factors
that determine the social responsibility disclosure and this study focuses on
profitability solvency liquidity corporate governance and firm size
2 Theoritical Framework And Hypothesis Development
21 Profitability and ISR
According to Donovan and Gibson 2000 cite in (Sembiring 2005) the relationship
between profitability and CSR have negative relationship because the company
(management) felt no need to disclose social responsibility when companies are have
a high level of profitability because the company (management) do not consider the
need to report it things that can interfere with information about the companys
financial success In contrast when a low level of profitability they hope the report
will read the users good news the companys performance for example in the social
scope and thus investors will continue to invest in the company
Relationship with the financial performance of corporate social responsibility by
Belkaoui and Karpik (1989) cite in (Angling 2010) are best expressed with
profitability it is because the view that the social responses requested from the same
management with the ability required to make a firm makes a profit Besides the level
of profitability can indicate how well the management of the companys management
therefore the higher the profitability of a company that tends to be more extensive
Corporate Social Responsibility Disclosure Associated with agency theory the
greater the profit that would make companies disclose social information more
International Conference of Global Islamic Studies 2014
92
widely From the results of research on CSR disclosure affecting profitability before
then researchers hypothesize
H1 Profitability affect the level of islamic social responsibility disclosure in Islamic
banks
22 Solvency and ISR
Belkaoui and Karpik (1989) cite in (Anggraini 2006) states that the higher the level
of solvency (ratio of debt leverage) the more likely the company will violate the
credit agreement so that the company will report higher profits now The company
will reduce costs including costs to disclose social information Associated with
agency theory firms with high leverage have high agency costs so that the company
will reduce the costs associated with Corporate Social Responsibility Disclosure
Based on agency theory supposed to be the higher the solvency of then lower level of
CSR disclosure to avoid the attention of the debtholders if the company is high risk
the research hypothesis is formulated as follows
H2 Solvency influence the level of islamic social reporting disclosure in Islamic
Banks
23 Liquidity and ISR
According Putri and Christiawan (2014) Liquidity is one of the performance that is
often used as a measure of investors in evaluating the company By so when produced
lower liquidity the company will tend to perform its social responsibility disclosure
more and more this is in line with the theory of signal because compared to investors
management companies know more about the companys internal performance while
investors only see the end result (financial ratios ) so that when liquidity is low
investors will tend to give a low value on the company could even pull out the
investment so the company tried to reduce the asymmetry of information one way to
perform its social responsibility disclosure
Liquidity is a condition that indicates a companys ability to fund the companys
operations and pay off the short-term debt This ratio is used to give an idea of the
effect of the availability of funds to the companys disclosure of corporate social
responsibility (CSR) The company is financially healthy would likely reveal more
information than the companys CSR lower liquidity It is based on the financial
strength of a company that will tend to provide more extensive information than
companies that have weak financial condition (Cooke TE 1991 in Arthana 2012)
H3 Liquidity influence the level of islamic social reporting disclosure in Islamic
Banks
24 Firm Size and ISR
Firm size (size) is a scale used to determine the size of a company Large scale
companies usually tend to be much more revealing than corporate social responsibility
which have small scale Associated with agency theory as stated Sembiring (2005)
International Conference of Global Islamic Studies 2014
93
that the bigger a company then agency costs that appear are also getting bigger to
reduce the agency costs companies tend to disclose more extensive information
H4 Firm Size influence the level of islamic social reporting disclosure in Islamic
Banks
25 Good Corporate Governance and ISR
In research Farook and Lanis (2005) tried to analyze the factors that affect the level of
disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14
countries around the world Social conditions Politics and Corporate Governance are
two factors that trying raised in this study Social conditions Political factors consist
of the level of political freedom as well as the proportion of people of Muslim society
while the corporate governance factors consist of Islamic Governance (Islamic
Governance) and the shareholding structure of IAH (Investment Account Holders
Right) The results of this study indicate that there is substantial influence of factors
Corporte Governance and Political Condition of the level of disclosure of Corporate
Social Responsibility
H5 Good Corporate Governance influence the level of islamic social reporting
disclosure in Islamic Banks
Theoritical Framework of this research is illustrated as follows
Figur 1 theoritical framework
3 Methodology
Data collection methods used in this research is the study documentation using the
names of Islamic banks in 2012 next phase a data retrieval company in the form of
the annual report and corporate governance statement contained in the relevant bank
website and financial statements contained in the Bank Indonesia Company data are
then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie
List of islamic bank in 2012
NUM Name Of Islamic bank
PROFITABILITY
GOOD CORPORATE
GOVERNANCE
SOLVENCY
LIQIDITY
FIRM SIZE
ISLAMIC SOCIAL REPORTING
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
90
1 Introduction
Natural phenomena that occur such as mudslides forest fires and global warming may
be a natural occurrence that is triggered due to human actions As was written in
Quran Ar-Rum 41 has appeared on the damage land and in the sea due to human
actions that God may feel to them most of (due to) their actions so they return to the
right path Besides to worship in the world humans by nature were created by God
as khalifah on earth human beings have a duty to utilize manage and maintain the
universe for the benefit and welfare of life But greed and ill-treatment against human
nature itself can cause damage to the nature This is reflected by the current natural
conditions This is related to the concept of the government to the company to carry
out its social responsibility
Corporate Social Responsiility (CSR) is a concept that is being developed in various
countries Awareness of the importance of the implementation of CSR (Corporate
Social Responsibility) into a global trend along with the rise of global public
awareness of the products that are environmentally friendly and are produced with
care for the environment and social One purpose of the company revealeds
environmental performance social and financial annual report or in a separate report
is to reflect the level of accountability responsibility and corporate transparency to
investors and other stakeholders The disclosure aims to establish a good relationship
and effective communication between the company and the public and other
stakeholders about how the company has integrated CSR and social environment in
every aspect
These companies utilize social report as a platform to attract investors to look good
records Integration in CSR reports Most of the companies vying to be the best in
carrying out social activities are reported as either their company good records But
On the other hand there is a condition which contrasts with other companies Based
on research conducted by the International Institute of Islamic Thought (IIIT) in 1996
indicated that the Islamic banks are not fully run in accordance with the demands of
social role of Islam A total of 32 Islamic banks in the world to prioritize economic
goals than social goals with an indication that the economic criteria are preferred than
social criteria when evaluating investment opportunities (Maali et al 2003 cite in
Chariri 2012)
Islamic banking have the principles of Islam in all its aspects it means that any
activity undertaken by Islamic banks based on Al-Quran and Al-Hadith So that
became the basis for the actors to interact between people and environments By
doing so the reporting activity must be based on Islamic principles Because
according to AAOIFI (Accounting and Auditing Organization for Islamic Financial
Institutions) Islamic banking as well as Islamic financial institutions must report their
social responsibility
Related to disclosure of social responsibility for Islamic banking recently discussed
the Islamic Social Reporting Index (hereinafter referred to as the index ISR) ISR
Index contains the points that describe corporate social responsibility set by AAOIFI
(Accounting and Auditing Organization for Islamic Financial Institutions) are then
developed further by researchers on CSR items that should be disclosed by an Islamic
entity The CSR Index will become a reference in the Islamic perspective on CSR
International Conference of Global Islamic Studies 2014
91
The lack of research on the implementation of the ISR index sharia banks in
Indonesia Creating interested researchers to examine more deeply Given the Islamic
banking industry in Indonesia is growing quite rapidly plus with the disclosure of
CSR issues are increasing this study tries to look at what are the factors that influence
the disclosure of ISR in Islamic banks
This research was aimed to identify factors affecting the disclosure of ISR of Syariah
banks in Indonesia ISR in the annual report significantly associated with company
size profitability solvency liquidity and good corporate governance Solvency ratio
or commonly referred to leverage research results show that diverse The results
indicate that the variable is not significant leverage on social responsibility (SR)
disclosure expressed by Sembiring (2005) Research Anggraini (2006) find that
leverage does not influence companys SR disclosure Another factor is that used
effects the companys liquidity Research liquidity effect also varied according to
Arthana 2012 Kamil and Herusetya (2012) liquidity does not affect the disclosure of
corporate social responsibility The next factor affecting corporate social disclosure is
the profitability of the company The difference was the result of these factors vary
according to several studies According Sembiring (2005) but did not significantly
affect the profitability of the corporate social responsibility disclosure According
Princess and Christiawan (2014) and Kamil and Herusetya (2012) does not affect the
profitability of corporate social responsibility disclosure Another factor affecting the
disclosure of corporate social responsibility is good corporate governance by Chariri
2012 GCG is represented by commissioners and sharia supervisory board still not can
improve with better oversight mechanisms to encourage CSR is widely Because of
the many research on the influence of corporate social responsibility disclosure with
different results the researchers wanted to clarify the results of research on the factors
that determine the social responsibility disclosure and this study focuses on
profitability solvency liquidity corporate governance and firm size
2 Theoritical Framework And Hypothesis Development
21 Profitability and ISR
According to Donovan and Gibson 2000 cite in (Sembiring 2005) the relationship
between profitability and CSR have negative relationship because the company
(management) felt no need to disclose social responsibility when companies are have
a high level of profitability because the company (management) do not consider the
need to report it things that can interfere with information about the companys
financial success In contrast when a low level of profitability they hope the report
will read the users good news the companys performance for example in the social
scope and thus investors will continue to invest in the company
Relationship with the financial performance of corporate social responsibility by
Belkaoui and Karpik (1989) cite in (Angling 2010) are best expressed with
profitability it is because the view that the social responses requested from the same
management with the ability required to make a firm makes a profit Besides the level
of profitability can indicate how well the management of the companys management
therefore the higher the profitability of a company that tends to be more extensive
Corporate Social Responsibility Disclosure Associated with agency theory the
greater the profit that would make companies disclose social information more
International Conference of Global Islamic Studies 2014
92
widely From the results of research on CSR disclosure affecting profitability before
then researchers hypothesize
H1 Profitability affect the level of islamic social responsibility disclosure in Islamic
banks
22 Solvency and ISR
Belkaoui and Karpik (1989) cite in (Anggraini 2006) states that the higher the level
of solvency (ratio of debt leverage) the more likely the company will violate the
credit agreement so that the company will report higher profits now The company
will reduce costs including costs to disclose social information Associated with
agency theory firms with high leverage have high agency costs so that the company
will reduce the costs associated with Corporate Social Responsibility Disclosure
Based on agency theory supposed to be the higher the solvency of then lower level of
CSR disclosure to avoid the attention of the debtholders if the company is high risk
the research hypothesis is formulated as follows
H2 Solvency influence the level of islamic social reporting disclosure in Islamic
Banks
23 Liquidity and ISR
According Putri and Christiawan (2014) Liquidity is one of the performance that is
often used as a measure of investors in evaluating the company By so when produced
lower liquidity the company will tend to perform its social responsibility disclosure
more and more this is in line with the theory of signal because compared to investors
management companies know more about the companys internal performance while
investors only see the end result (financial ratios ) so that when liquidity is low
investors will tend to give a low value on the company could even pull out the
investment so the company tried to reduce the asymmetry of information one way to
perform its social responsibility disclosure
Liquidity is a condition that indicates a companys ability to fund the companys
operations and pay off the short-term debt This ratio is used to give an idea of the
effect of the availability of funds to the companys disclosure of corporate social
responsibility (CSR) The company is financially healthy would likely reveal more
information than the companys CSR lower liquidity It is based on the financial
strength of a company that will tend to provide more extensive information than
companies that have weak financial condition (Cooke TE 1991 in Arthana 2012)
H3 Liquidity influence the level of islamic social reporting disclosure in Islamic
Banks
24 Firm Size and ISR
Firm size (size) is a scale used to determine the size of a company Large scale
companies usually tend to be much more revealing than corporate social responsibility
which have small scale Associated with agency theory as stated Sembiring (2005)
International Conference of Global Islamic Studies 2014
93
that the bigger a company then agency costs that appear are also getting bigger to
reduce the agency costs companies tend to disclose more extensive information
H4 Firm Size influence the level of islamic social reporting disclosure in Islamic
Banks
25 Good Corporate Governance and ISR
In research Farook and Lanis (2005) tried to analyze the factors that affect the level of
disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14
countries around the world Social conditions Politics and Corporate Governance are
two factors that trying raised in this study Social conditions Political factors consist
of the level of political freedom as well as the proportion of people of Muslim society
while the corporate governance factors consist of Islamic Governance (Islamic
Governance) and the shareholding structure of IAH (Investment Account Holders
Right) The results of this study indicate that there is substantial influence of factors
Corporte Governance and Political Condition of the level of disclosure of Corporate
Social Responsibility
H5 Good Corporate Governance influence the level of islamic social reporting
disclosure in Islamic Banks
Theoritical Framework of this research is illustrated as follows
Figur 1 theoritical framework
3 Methodology
Data collection methods used in this research is the study documentation using the
names of Islamic banks in 2012 next phase a data retrieval company in the form of
the annual report and corporate governance statement contained in the relevant bank
website and financial statements contained in the Bank Indonesia Company data are
then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie
List of islamic bank in 2012
NUM Name Of Islamic bank
PROFITABILITY
GOOD CORPORATE
GOVERNANCE
SOLVENCY
LIQIDITY
FIRM SIZE
ISLAMIC SOCIAL REPORTING
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
91
The lack of research on the implementation of the ISR index sharia banks in
Indonesia Creating interested researchers to examine more deeply Given the Islamic
banking industry in Indonesia is growing quite rapidly plus with the disclosure of
CSR issues are increasing this study tries to look at what are the factors that influence
the disclosure of ISR in Islamic banks
This research was aimed to identify factors affecting the disclosure of ISR of Syariah
banks in Indonesia ISR in the annual report significantly associated with company
size profitability solvency liquidity and good corporate governance Solvency ratio
or commonly referred to leverage research results show that diverse The results
indicate that the variable is not significant leverage on social responsibility (SR)
disclosure expressed by Sembiring (2005) Research Anggraini (2006) find that
leverage does not influence companys SR disclosure Another factor is that used
effects the companys liquidity Research liquidity effect also varied according to
Arthana 2012 Kamil and Herusetya (2012) liquidity does not affect the disclosure of
corporate social responsibility The next factor affecting corporate social disclosure is
the profitability of the company The difference was the result of these factors vary
according to several studies According Sembiring (2005) but did not significantly
affect the profitability of the corporate social responsibility disclosure According
Princess and Christiawan (2014) and Kamil and Herusetya (2012) does not affect the
profitability of corporate social responsibility disclosure Another factor affecting the
disclosure of corporate social responsibility is good corporate governance by Chariri
2012 GCG is represented by commissioners and sharia supervisory board still not can
improve with better oversight mechanisms to encourage CSR is widely Because of
the many research on the influence of corporate social responsibility disclosure with
different results the researchers wanted to clarify the results of research on the factors
that determine the social responsibility disclosure and this study focuses on
profitability solvency liquidity corporate governance and firm size
2 Theoritical Framework And Hypothesis Development
21 Profitability and ISR
According to Donovan and Gibson 2000 cite in (Sembiring 2005) the relationship
between profitability and CSR have negative relationship because the company
(management) felt no need to disclose social responsibility when companies are have
a high level of profitability because the company (management) do not consider the
need to report it things that can interfere with information about the companys
financial success In contrast when a low level of profitability they hope the report
will read the users good news the companys performance for example in the social
scope and thus investors will continue to invest in the company
Relationship with the financial performance of corporate social responsibility by
Belkaoui and Karpik (1989) cite in (Angling 2010) are best expressed with
profitability it is because the view that the social responses requested from the same
management with the ability required to make a firm makes a profit Besides the level
of profitability can indicate how well the management of the companys management
therefore the higher the profitability of a company that tends to be more extensive
Corporate Social Responsibility Disclosure Associated with agency theory the
greater the profit that would make companies disclose social information more
International Conference of Global Islamic Studies 2014
92
widely From the results of research on CSR disclosure affecting profitability before
then researchers hypothesize
H1 Profitability affect the level of islamic social responsibility disclosure in Islamic
banks
22 Solvency and ISR
Belkaoui and Karpik (1989) cite in (Anggraini 2006) states that the higher the level
of solvency (ratio of debt leverage) the more likely the company will violate the
credit agreement so that the company will report higher profits now The company
will reduce costs including costs to disclose social information Associated with
agency theory firms with high leverage have high agency costs so that the company
will reduce the costs associated with Corporate Social Responsibility Disclosure
Based on agency theory supposed to be the higher the solvency of then lower level of
CSR disclosure to avoid the attention of the debtholders if the company is high risk
the research hypothesis is formulated as follows
H2 Solvency influence the level of islamic social reporting disclosure in Islamic
Banks
23 Liquidity and ISR
According Putri and Christiawan (2014) Liquidity is one of the performance that is
often used as a measure of investors in evaluating the company By so when produced
lower liquidity the company will tend to perform its social responsibility disclosure
more and more this is in line with the theory of signal because compared to investors
management companies know more about the companys internal performance while
investors only see the end result (financial ratios ) so that when liquidity is low
investors will tend to give a low value on the company could even pull out the
investment so the company tried to reduce the asymmetry of information one way to
perform its social responsibility disclosure
Liquidity is a condition that indicates a companys ability to fund the companys
operations and pay off the short-term debt This ratio is used to give an idea of the
effect of the availability of funds to the companys disclosure of corporate social
responsibility (CSR) The company is financially healthy would likely reveal more
information than the companys CSR lower liquidity It is based on the financial
strength of a company that will tend to provide more extensive information than
companies that have weak financial condition (Cooke TE 1991 in Arthana 2012)
H3 Liquidity influence the level of islamic social reporting disclosure in Islamic
Banks
24 Firm Size and ISR
Firm size (size) is a scale used to determine the size of a company Large scale
companies usually tend to be much more revealing than corporate social responsibility
which have small scale Associated with agency theory as stated Sembiring (2005)
International Conference of Global Islamic Studies 2014
93
that the bigger a company then agency costs that appear are also getting bigger to
reduce the agency costs companies tend to disclose more extensive information
H4 Firm Size influence the level of islamic social reporting disclosure in Islamic
Banks
25 Good Corporate Governance and ISR
In research Farook and Lanis (2005) tried to analyze the factors that affect the level of
disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14
countries around the world Social conditions Politics and Corporate Governance are
two factors that trying raised in this study Social conditions Political factors consist
of the level of political freedom as well as the proportion of people of Muslim society
while the corporate governance factors consist of Islamic Governance (Islamic
Governance) and the shareholding structure of IAH (Investment Account Holders
Right) The results of this study indicate that there is substantial influence of factors
Corporte Governance and Political Condition of the level of disclosure of Corporate
Social Responsibility
H5 Good Corporate Governance influence the level of islamic social reporting
disclosure in Islamic Banks
Theoritical Framework of this research is illustrated as follows
Figur 1 theoritical framework
3 Methodology
Data collection methods used in this research is the study documentation using the
names of Islamic banks in 2012 next phase a data retrieval company in the form of
the annual report and corporate governance statement contained in the relevant bank
website and financial statements contained in the Bank Indonesia Company data are
then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie
List of islamic bank in 2012
NUM Name Of Islamic bank
PROFITABILITY
GOOD CORPORATE
GOVERNANCE
SOLVENCY
LIQIDITY
FIRM SIZE
ISLAMIC SOCIAL REPORTING
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
92
widely From the results of research on CSR disclosure affecting profitability before
then researchers hypothesize
H1 Profitability affect the level of islamic social responsibility disclosure in Islamic
banks
22 Solvency and ISR
Belkaoui and Karpik (1989) cite in (Anggraini 2006) states that the higher the level
of solvency (ratio of debt leverage) the more likely the company will violate the
credit agreement so that the company will report higher profits now The company
will reduce costs including costs to disclose social information Associated with
agency theory firms with high leverage have high agency costs so that the company
will reduce the costs associated with Corporate Social Responsibility Disclosure
Based on agency theory supposed to be the higher the solvency of then lower level of
CSR disclosure to avoid the attention of the debtholders if the company is high risk
the research hypothesis is formulated as follows
H2 Solvency influence the level of islamic social reporting disclosure in Islamic
Banks
23 Liquidity and ISR
According Putri and Christiawan (2014) Liquidity is one of the performance that is
often used as a measure of investors in evaluating the company By so when produced
lower liquidity the company will tend to perform its social responsibility disclosure
more and more this is in line with the theory of signal because compared to investors
management companies know more about the companys internal performance while
investors only see the end result (financial ratios ) so that when liquidity is low
investors will tend to give a low value on the company could even pull out the
investment so the company tried to reduce the asymmetry of information one way to
perform its social responsibility disclosure
Liquidity is a condition that indicates a companys ability to fund the companys
operations and pay off the short-term debt This ratio is used to give an idea of the
effect of the availability of funds to the companys disclosure of corporate social
responsibility (CSR) The company is financially healthy would likely reveal more
information than the companys CSR lower liquidity It is based on the financial
strength of a company that will tend to provide more extensive information than
companies that have weak financial condition (Cooke TE 1991 in Arthana 2012)
H3 Liquidity influence the level of islamic social reporting disclosure in Islamic
Banks
24 Firm Size and ISR
Firm size (size) is a scale used to determine the size of a company Large scale
companies usually tend to be much more revealing than corporate social responsibility
which have small scale Associated with agency theory as stated Sembiring (2005)
International Conference of Global Islamic Studies 2014
93
that the bigger a company then agency costs that appear are also getting bigger to
reduce the agency costs companies tend to disclose more extensive information
H4 Firm Size influence the level of islamic social reporting disclosure in Islamic
Banks
25 Good Corporate Governance and ISR
In research Farook and Lanis (2005) tried to analyze the factors that affect the level of
disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14
countries around the world Social conditions Politics and Corporate Governance are
two factors that trying raised in this study Social conditions Political factors consist
of the level of political freedom as well as the proportion of people of Muslim society
while the corporate governance factors consist of Islamic Governance (Islamic
Governance) and the shareholding structure of IAH (Investment Account Holders
Right) The results of this study indicate that there is substantial influence of factors
Corporte Governance and Political Condition of the level of disclosure of Corporate
Social Responsibility
H5 Good Corporate Governance influence the level of islamic social reporting
disclosure in Islamic Banks
Theoritical Framework of this research is illustrated as follows
Figur 1 theoritical framework
3 Methodology
Data collection methods used in this research is the study documentation using the
names of Islamic banks in 2012 next phase a data retrieval company in the form of
the annual report and corporate governance statement contained in the relevant bank
website and financial statements contained in the Bank Indonesia Company data are
then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie
List of islamic bank in 2012
NUM Name Of Islamic bank
PROFITABILITY
GOOD CORPORATE
GOVERNANCE
SOLVENCY
LIQIDITY
FIRM SIZE
ISLAMIC SOCIAL REPORTING
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
93
that the bigger a company then agency costs that appear are also getting bigger to
reduce the agency costs companies tend to disclose more extensive information
H4 Firm Size influence the level of islamic social reporting disclosure in Islamic
Banks
25 Good Corporate Governance and ISR
In research Farook and Lanis (2005) tried to analyze the factors that affect the level of
disclosure of Corporate Social Responsibility on 47 existing Islamic Bank in 14
countries around the world Social conditions Politics and Corporate Governance are
two factors that trying raised in this study Social conditions Political factors consist
of the level of political freedom as well as the proportion of people of Muslim society
while the corporate governance factors consist of Islamic Governance (Islamic
Governance) and the shareholding structure of IAH (Investment Account Holders
Right) The results of this study indicate that there is substantial influence of factors
Corporte Governance and Political Condition of the level of disclosure of Corporate
Social Responsibility
H5 Good Corporate Governance influence the level of islamic social reporting
disclosure in Islamic Banks
Theoritical Framework of this research is illustrated as follows
Figur 1 theoritical framework
3 Methodology
Data collection methods used in this research is the study documentation using the
names of Islamic banks in 2012 next phase a data retrieval company in the form of
the annual report and corporate governance statement contained in the relevant bank
website and financial statements contained in the Bank Indonesia Company data are
then used to fill the ISR index Islamic banks in Indonesia in 2012 totaled 11 ie
List of islamic bank in 2012
NUM Name Of Islamic bank
PROFITABILITY
GOOD CORPORATE
GOVERNANCE
SOLVENCY
LIQIDITY
FIRM SIZE
ISLAMIC SOCIAL REPORTING
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
94
1 Bank Muamalat Indonesia (BMI)
2 Bank Syariah Mandiri (BSM)
3 Bank Negara Indonesia Syariah (BNIS)
4 Bank Republik Indonesia Syariah (BRIS)
5 Bank Central Asia Syariah (BCAS)
6 Bank Mega Syariah (MEGS)
7 Bank Bukopin Syariah (BUKS)
8 Panin Bank Syariah (PANS)
9 MayBank Syariah (MAYS)
10 Bank Victoria Syariah (VICS)
11 Bank Jabar Syariah (BJBS)
31 Measurement Of Variable
311 Profitability
profitability in this study were measured using return on assets (ROA) as done by
Putri and Christiawan 2012 With the formula
312 Solvency
Solvency variables measured using an instrument obtained from the book titled
Manajemen Keuangan Perusahaan (Sitanggang 2012) that is the ratio of debt to
assets or Debt to Assets Ratio (DAR)
313 Liquidity
Liquidity variables measured using Triyuwono puspitaningrum and 2008 using the
LDR (loan to deposit ratio) or FDR if in Islamic banking (financing to deposit ratio)
with the formula
314 Firm Size
Variable size in this study was measured using an instrument obtained from Rizkia
(2012) that is uses total assets This variable is calculated using the natural log in
order to align its objectives in order to reduce the significant difference between the
size of a large company and small company size so that the data can be normally
distributed total assets The formula used to measure the size variable is
Size = natural log (total assets)
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
95
315 Good Corporate Governance
GCG variables in this study using the existing measures in the companys corporate
governance report in the form of self assessment CGI
316 Islamic Social Reporting Index
ISR Index in this study consisted of 43 items of disclosure that consists of six themes
according peneltian Othman et al (2010) which is the development of research
Haniffa (2002) in Table 1 Disclosure Each item has value 1 or 0 Score 1 will be
given if items contained in the ISR enterprise data and will be given a score of 0 if
otherwise The scores are then summed according to both individual and overall
theme So that the largest value is 43 and the smallest value is 0 for each company in
each year The dependent variable is given the symbol ISR Following formula to
calculate the amount of disclosure index level after scoring on ISR completed
ISRD = item disclose on annual report
Maximum score
32 Multiple Linear Regresion
This research use multiple linear regression analysis for the reason that more than one
independent variable This analysis is used to determine the relationship between the
ISR with the independent variable This study used a multiple linear regression model
with the following equation
Keterangan
ISRD Disclosure Islamic Social Reporting
PRF Profitability ROA
SOL Solvency DAR
LIK Liquidity FDR
SIZE SIZE Total assets (Ln)
α Konstanta
β1-β5 Koefisien Regresi
e Error
4 RESULTS AND DISCUSSION
41 Results
If we look result from normal P-Plot graph kolmogorov-smirnov test (sig
0658gt005) and value Zskewness= -030601 Zkurtosis= -113195 data in this research
distributed normal(Ghazali2011) Multikolinierity test showed no correlation was
existed between the independent variables It was indicated by the value of Variance
Inflation Factor(VIF) that was le 10 (Ghazali 2011) Heteroscedasticity was also not a
problem since in the scatterplots graph the dots were randomly spread above and
below 0 along the Y axis Multiple linear regression analysis then was conducted
resulted R2 of 0841 showed that
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
96
the regression comply with the goodness of fit The regression was as follows
The test show that Firm Size Proxied by LNTotal Assets have p value 0005lt005
thats means firm size significantly affect disclosure of ISR on the other hand
profitability (0151) solvency (0641) liquidity (0948) and GCG (0615)(means p
value of variablegt005) not significantly affected disclosure of ISR
One-Sample Kolmogorov-Smirnov Test
Unstandardized
Residual
N 11
Normal Parametersab Mean 0000000
Std Deviation 02209703
Most Extreme Differences Absolute 221
Positive 180
Negative -221
Kolmogorov-Smirnov Z 732
Asymp Sig (2-tailed) 658
a Test distribution is Normal
b Calculated from data
Zskewness= -030601
Zkurtosis= -113195
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
97
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig
Collinearity Statistics
B Std Error Beta Tolerance VIF
1 (Constant) -1164 286 -4066 010
ROA -1786 1053 -239 -1696 151 801 1248
DAR -132 266 -197 -496 641 101 9920
FDR -005 075 -023 -069 948 145 6876
LN TA 064 013 1084 4783 005 309 3239
CGI 013 024 080 535 615 705 1419
a Dependent Variable ISRD
Model Summaryb
Model R R Square Adjusted R Square
Std Error of the
Estimate
1 960a 921 841 03124992
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
ANOVAb
Model Sum of Squares Df Mean Square F Sig
1 Regression 057 5 011 11614 009a
Residual 005 5 001 Total 062 10
a Predictors (Constant) CGI ROA FDR LN TA DAR
b Dependent Variable ISRD
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
98
42 Disscussions
Firm size affected disclosure of ISR It proved that the larger company would be
higher disclosure of ISR Associated with agency theory as stated Sembiring (2005)
that the bigger a company the agency costs that arise are also getting bigger to reduce
the agency costs companies tend to disclose more extensive information
On the other hand profitability solvency liquidity and good corporate governance
had no significant to disclosure of ISR Islamic bank in indonesia not affected with
profitability solvability and liquidity to disclose theirs social responsibility They
dont need opini from investor to make them invest to the company Islamic banks
trust that disclose social responsibility is something that must do in line with the al-
quran Function of islamic bank is baitul maal wat tamwil that mean islamic banks
are not only for trade activities but also social activities
Good Corporate Governance had no affected to disclose of Islamic social reporting
Condition of corporate governance islamic banks in indonesia dont have strong
enough to influence of social responsibility disclosure They think that do social
responsibility it means they can get legitimacy from people around Beside that rule
from UU that make social responsibility as a mandatory be a stronger reason than
their corporate governance
5 Conclusions
This research proved that 1) Firm size is significantly affected level of disclosure ISR
it means greater size of islamic banks can make higher level of ISR disclosure 2)
Profitability had no significantly affected level of ISR disclosureit means higher
profitability not necessarily increase the level of ISR 3) Solvency had no
significantly affected level of ISR disclosureit means lower solvency not necessarily
increase the level of ISR 4) Liquidity had no significantly affected level of ISR
disclosureit means higher liquidity not necessarily increase the level of ISR and 5)
Good corporateg governance had no significantly affected level of ISR disclosureit
means higher quality of corporate governance not necessarily increase the level of
ISR
6 Implications
The implications of this researche are 1) Islamic banks in indonesia should increase
their quality of corporate governance in order to affect their activity such as disclosure
of social responsibility by islamic perspective 2) Standard of disclosure should be
improved to be used as guidance of ISR disclosure in Indonesia 3) It is needed to
continuously familiarize compliment of syariah bank especially syariah compliance
in the aspect of syariah compliance in the bussiness operation of the syariah bank in
Indonesia like social responsibility
Refrences
Anggraini Retno ldquoPengungkapan Informasi Sosial dan Faktor-Faktor yang
Mempengaruhi Pengungkapan Informasi Sosial dalam Laporan Keuangan
Tahunanrdquo SNA Agustus 2006vol 9 pp 1-21
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
99
Ardianto Elvinaro dan Machfudz Dindin M Efek Kedermawanan Pebisnis dan CSR
Jakarta Elex Media Komputindo 2011
Basyaib Fachmi Keungan Perusahaan Pemodelan Menggunakan Microsoft Excell
Jakarta Prenada Media Group 2007
Charles CharirirdquoAnalisis Pengaruh Islamic Governace Terhadap Pengungkapan
Corporate Social Responsibilityrdquo Jurnal Akuntansi 2012 hal 1-15
Farook Sayd dan Lanis Roman ldquoBanking on Islam Determinants of Corporate
Social Responsibility Disclosurerdquo AFAANZ 2005 pp 1-34
Ghozali Imam Aplikasi Analisis Multivariate Dengan Program IBM SPSS 19
Semarang Badan Penerbit Universitas Diponegoro 2011
Haniffa Roszaini and Hudaib Muhammad ldquoCorporate Governance Structure and
Performance of Malaysian Listed Companiesrdquo Journal of Business Finance amp
Accounting 33 pp 1034-1066
Haniffa Roszaini ldquoSocial Reporting Disclosure An Islamic Perspectiverdquo IMAR 2
2002 pp 128-146
Jogiyanto Teori Portofolio dan Analisis Investasi Yogyakarta BPFE UGM 2003
Kamil Ahmad dan Herusetya Antonius ldquoPengaruh Karakteristik Perusahaan
Terhadap Luas Pengungkapan Kegiatan Corporate Social Responsibilityrdquo ISSN
2088-2106 pp 1-17
Khoirudin Amirul ldquoCorporate Governance Dan Pengungkapan Islamic Social
Reporting Pada Perbankan Syariah Di Indonesiardquo Accounting Analysis Journal
2 pp 227-232
Lako Andreas Dekonstruksi CSR amp Reformasi Paradigma Bisnis amp Akuntansi
Jakarta Penerbit Erlangga 2011
Lestari Puji ldquoDeterminants Of Islamic Social Reporting In Syariah Banks
Case Of Indonesiardquo International Journal of Business and Management Invention 2
PP28-34
Maryam Arfan Muhammad dan Yahya M Rizal ldquoPengaruh Karakteristik
Perusahaan Terhadap Keberadaan Penungkapan Dalam Laporan Tahunan Sektor
Properti Yang Terdaftar Di Bursa Efek Indonesiardquo ISSN 2302-0163 pp 86-99
Muslihin ldquoCSR dalam Perspektif Islamrdquo 2013
httpwwwreferensimakalahcom201302Corporate-Social-Responsibility-
dalam-Perspektif-Islamhtml (diakses tanggal 06 maret 2014)
Mutia Evi Zuraida dan Andriani Devi ldquoPengaruh Ukuran Perusahaan Profitabilitas
dan Ukuran Dewan Komisaris Terhadap Pengungkapan Corporate Social
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
100
Responsibility Pada Perusahaan Manufaktur yang Terdaftar Di Bursa Efek
Indonesiardquo Jurnal Telaah Riset 4 pp 187-201
Othman Rohanna dan Thani Azlan MD ldquo Islamic Social Reporting Of Listed
Companies In Malaysiardquo International Business amp Economics Research Journal
9 2010 pp 135-144
Peraturan Pemerintah No 47 tahun 2012
Prasetyoningrum Ari Kristin ldquoAnalisis Pengaruh Independensi dan Profesionalisme
Dewan Pengawas Syariah terhadap Kinerja Bank Perkreditan Rakyat Syariah di
Jawa Tengahrdquo ISSN 12 2010 pp 27-36
Priantinah Denies ldquoAnalisis Faktor-Faktor Yang Mempengaruhi Pengungkapan
Corporate Social Responsibility di Indonesiardquo Jurnal Nominal 1 2012 pp 22-
34
Rita A Roland H dan Faradila ldquoPengaruh Ukuran Perusahaan Leverage dan
Profitabilitas terhadap Pengungkapan Tanggung Jawab Sosial Pada Perushaan
Manufaktur yang Listing Di BEIrdquo Jurnal Ekonomi 8 pp 66-78
Rudito Bambang dan Famiola Melia Corporate Social Responsibility Bandung
Rekayasa Sains 2013
Sari Rizqia Anggita ldquoPengaruh Karakteristik Perusahaan Terhadap Corporate Social
Responsibility Pada Perusahaan Manufaktur Yang Terdaftar di BEIrdquo Jurnal
Nominal 1 2010 pp 124-140
Sembiring Edy Rismanda ldquoKarakter Perusahaan dan Pengungkapan Tanggung
Jawab Sosial Study Empiris Pada Perusahaan Yang Tercatat Di Bursa Efek
Jakartardquo SNA 8 2005 pp 379-395
Sudaryati Dwi dan Eskadewi Yunita ldquoPengaruh Corporate Governance Terhadap
Tingkat Pengungkapan Corporate Social Responsibility Di Bank Syariahrdquo Jurnal
Ekonomi dan Bisnis September 2012 11 pp 14-28
Usanti Trisadini P Transaksi Bank Syariah Jakarta Bumi Aksara 2012
UU No 25 Tahun 2007
UU No 40 tahun 2007
Wibowo Alexander Jatmiko ldquoInteraction between Corporate Social Responsibility
Disclosure and Profitability of Indonesia Firmsrdquo International Annual
Symposium on Sustainability Science and Management 11 2012 pp 373-380
Yakup Selvy Wagner Eva dan Turel Ahmet ldquoCorporate Social Responsibility In
The Time Of Financial Crisis Evidence From Turkeyrdquo Annales Universitatis
Apulensis Series Oeconomica 12 2010 pp 281-290
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
101
Appendix 1
ISR Index
No islamic social reporting index 2010 2011 2012
A Finance And Investment
1 riba activities
2 Gharar
3 Zakat
method used
zakatable amount
beneficiary
4 late payments and insolvent clientsbad debt write off
5 current value balance sheet
6 value added statement
B Products and Services
7 green product
8 halalsyariah status on the product
9 improve on services
10 product developement
11 costumer complaint
number of customer complaint
handle the compalint
satisfys customer survey
C Employees
12 nature of work
working hours
Holidays
employees clasification
13 education and training human capital development
education and training program for employees
retention strategic for employee
build program and carreers level for employee
percentage of employee who ever get training
14 Equal Opportunities
15 health and safety
16 working environment
17 employment of other special-interest-group
18
higher echelons in th company perform the congregational
prayers with
lower and middle level managers
19
muslim employees are allowed to perform they obligatory
during ramadhan
20 Proper place of worship for the employees
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index
International Conference of Global Islamic Studies 2014
102
D Society
21 SaddaqaDonation
22 Waqf
23 qardhassan
24 employee volunteerism
25 education
create new school
financial and non-financial helps for school
scholarship
26 graduate employement
27 Youth development
28 Underprivileged community
29 childern care
30 CharitiesGiftsSocial activities
31
Sponsoring public healthrecreational projectsportscultural
events
E Environment
32 Conservation of environment
33 Endangered wildlife
34 Environmental Pollution
35 environmental education
36 environmental products
37 Environmental Audit
38 Environmental Management SystemPolicy
F Corporate Governance
39 Shariah compliance status
40 ownership structure
number of muslim shareholder
41 board structure-muslim vs non-muslim
42 forbidden activities
monopolistic practice
hoarding necessary goods
price manipulation
fraudulent bussiness practice
Gambling
43 anti-corruption policies
Total
Index