Corporate Social Responsibility, Good Corporate Governance and Financial Sustainability: A Financial Stability Role

Corporate social responsibility and good corporate governance are elements in Sharia bank operations that balance social responsibility and business interests. Financial sustainability is also an important indicator in assessing the long-term performance of financial institutions, including Islamic banks. Meanwhile, financial stability plays a role in strengthening the relationship between CSR, GCG and financial sustainability This raaesearch aims to analyze the influence of CSR and GCG on financial sustainability with financial stability as intervening variable in Sharia Commercial Banks in Indonesia. The sampling technique used was purposive sampling, with a total sample of 9 Islamic commercial banks in Indonesia in 2019-2023, and panel data path analysis was used. The indicator of the CSR variable uses the Corporate Social Responsibility Disclosure Index ( ) according to GRI standards, GCG is measured using the GCG score indicator, financial sustainability uses the SFR (Sustainability Financial Ratio) and financial stability is measured using the z-Score. The research results show that CSR does not affect financial sustainability directly or through financial stability. GCG also does not affect financial sustainability directly or through financial stability. Financial stability itself does not affect financial sustainability. Besides, CSR does not affect financial stability, but GCG affects financial stability. From the results of this study, Islamic banking sector companies must strengthen the implementation of GCG in order to maintain long-term financial stability. In good GCG there is transparency, accountability, and good management in the company so that it can increase investor confidence and reduce financial risk.