Analysis of Profitability and CSR on ESG with GCG as a Moderation Variable

The main goal of companies is to obtain the greatest possible profit. However, to achieve this goal, companies often ignore the social and environmental impacts that arise from economic activities or actions carried out by the company. Capital owners who are only oriented towards profit or material (single line), have damaged the balance of life by over-emphasizing human potential. Corporate responsibility no longer refers to the single bottom line, namely the company’s value reflected in financial conditions alone, but rather the company’s responsibility must implement triple bottom lines which include financial, social, and environmental aspects. This is because financial conditions alone are not enough to guarantee that the company’s value grows sustainably. The purpose of this study is to determine whether or not there is an influence of ESG on the sustainability of corporate profits through the implementation of CSR. This study uses a quantitative method to test the established hypothesis by collecting data using research instruments, analyzing data in the form of numbers through statistical processing of certain populations and samples. The population used in this study were 193 manufacturing companies listed on the IDX. The sample determined is a company whose criteria provide CSR Reports during 2020-2022 as many as seven companies. The results state that there is an influence of profitability on ESG, an influence of CSR on ESG, and GCG does not strengthen the influence of profitability on ESG, and GCG is able to strengthen the relationship between CSR and ESG.