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ABSTRACT:

This research aims to analyze and determine the impact of corporate social responsibility and good corporate governance on the financial performance of Basic Industry and Chemical Sector companies listed on the Indonesian Stock Exchange. The population in this study is that the research data is the financial reports as of 31 December 2019-2022 of basic industrial and chemical sector companies listed on the Indonesia Stock Exchange, totaling 45 companies which are also used as research samples. The approach to calculating Corporate Social Responsibility uses a dichotomy approach, namely each Corporate Social Responsibility item in the research instrument is given a value of 1 if it is disclosed and a value of 0 if it is not disclosed. Good Corporate Governance is measured using an instrument that has been developed by IICG in the form of the CGPI. For financial performance, use the ROA indicator. Data analysis using SEM-PLS. The results of the analysis show that corporate social responsibility has a positive impact on the company's financial performance. Good corporate governance has a significant positive influence on the financial performance of basic industrial and chemical sector companies listed on the Indonesia Stock Exchange.

KEYWORDS:

corporate social responsibility; good corporate governance; financial performance; BEI.

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