Citation:

Irene Stephanie Gow, Juniati Gunawan. "The Effect of Applying Green Accounting and Corporate Social Responsibility Disclosure on Profitability Using the International Council on Mining and Metals (ICMM) Standard" International Research Journal of Economics and Management Studies, Vol. 3, No. 1, pp. 304-314, 2024.

Abstract:

This research focuses on mining company profitability issues that are driven by a variety of factors and variables. Profitability is critical for businesses, and it is used to evaluate the company’s financial success. This study was undertaken to determine if there is a link between the variables of green accounting application and corporate social responsibility as independent variables on firm profitability as the dependent variable and company size as the control variable. Green accounting, the dependent variable, will be quantified using a dummy variable, and corporate social responsibility will be assessed using International Council on Mining and Metals (ICMM) standards. The researcher utilized multiple linear analysis methods using a purposive sampling methodology as the analytical method. The data utilized include financial statements, annual reports, and/or sustainability reports of mining firms listed on the Indonesia Stock Exchange from 2017 to 2021. According to the research findings, the use of green accounting has a positive impact and can boost firm profitability. However, disclosing corporate social responsibility programs does not affect firm profitability. Using green accounting and disclosing corporate social responsibility programs simultaneously does not affect firm profitability.

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Keywords:

Company Size, Corporate Social Responsibility, Green Accounting, ICMM, Profitability.