Globalization and the Digital Divide Essay Example for Free

Globalization and the Digital Divide EssayThe globalization era has been developing in recent years. The use of technology has an principal(prenominal) role in running the lineage. Any instruction ab come forth companies can be known in a second. This set apart pushes the people in contrast to provide the accurate, detail and trusted information which is related to the family. It too makes the community compete to improve the performance of their running(a) activities.To help understand how modern business phylogenesis, every company definitely has an orientation to make a proud profit, therefore the company tries to build a good image in familiar. Companies go out compete to increase their success both in application and trade field. At first, the company leave be profit-oriented, but as it progresses, it is not but focused on profit-making but also focused on social responsibility to keep the company alive. Companies must think about the impact on their environ ment.Rapid business development drives industry growth, especially in Indonesia. An industrial use must be related to the utilization of resources and produce valuable products. This will have a direct and indirect impact on the environment. The natural resource management industry, especially the management of non-renewable resources (petroleum, natural gas, coal industries, etc.) is a short-run industry, but it has a long-term impact on the environment.Despite having a positive impact on the economy of a country, an industrial activity also has a proscribe impact on the surrounding environment. Negative impacts due to activities that cause environmental damage, should be minimized first for the good of the company and the community. At the same time, governments, stock exchanges, markets, investors and the globe require companies to be transp arent about the goals, performance, and impacts of their sustainability. Then came the practice of CSR (Corporate Social Responsibility) in the business world.CSR is the companys plow deal to the stakeholders towards sustainable development by minimizing the negative impact of operational activities. Now CSR is widely known and in Indonesia has many companies that apply it. In addition, the policy has been made regarding the revelation of CSR as stipulated in Law of the Republic of Indonesia Number 40 of 2007 and mentioned that a company that carries out its business activities in relation to natural resources, is obliged to carry out social and environmental responsibility.CSR is expressed in a report called Sustainability Report. As reported in www.globalreporting.org (2017), Sustainability Report is a report published by the company about the economic, environmental, and social impacts caused by daily operational activities of the company. One of the guidelines that can be used by companies in carrying out CSR activities is the GRI (Global Reporting Initiative). GRI is an international non-profit organisation with network- base structure. GRI encourages the implementation of reporting with Sustainability Report as a way for companies and organizations to become more sustainable and contribute to a sustainable global economy. Companies report their activities based on principles and manifestations of standards in accordance with GRI Generation 4 (G4 Guidelines). In that way, the companies will feel the importance of CSR reporting that can improve their image, bring profit and checker the survival of the company. However, if a company does not report CSR, it will create a conflict with stakeholders.Manufacturing is an industry whose main activity is processing or converting dim materials into finished or semi-finished goods so that goods have added value. Each processing of raw materials from manufacturers would produce waste, causes the environment to feel its impact. The large number of manufacturing companies operating in coffee tree Island, making Java is the largest contributor of waste in Indonesia (National Geographic Indonesia, 2011). That is why covering the issue of environmental damage must be with a high skepticism. Because, besides a large number of output produced by the manufacturing company for its operational activities, it is still more output to be spent to repair environmental damage.Cases of thousands of liters of oil owned by PT Central Georgette Nusantara Printing (CGNP) that spill out pollutes Cibingbin River in Bandung, West Java makes people uneasy because the waste has been polluting the river that empties into the Sanguling Reservoir. The companys operational activities in this area cause environmental damage and harm the people around. It also causes two hectares of paddy fields managed by local people, threatened crops failing. This condition makes people consider the environmental issues are the main ones. After getting pressure from both the government and the people around the factory, the company is ultimately creditworthy for th e environmental pollution issue. The case above pushes the role of CSR as a business-enhancing success for a company.This query is using firm coat, profitability, supplement, public ownership and industry sensitivity as in unfree inconsistents and CSR disclosure which uses G4 guidelines as the dependent variable. stanch size of it is an indicator that can indicate a condition or symptomatic (large or small) of a company. Large companies are more in demand by analysts and brokers because they tend to be easy to publish financial reports and tend to be in stable performance positions (Astuti Nugrahanti, 2015). Profitability measures the overall effectiveness of management in generating profits with its assets (Smart Graham, 2010, p. 66). It means to measure the activity of the company in take in net profit. Leverage provides a description of the companys capital structure, thus it can use to see the level of risk of uncollectible debt (Fahrizqi, 2010). Public ownership is th e resemblance of share ownership owned by the public of the companys shares (Arthana, 2012). Industry sensitivity can be interpreted as how big the influence of industrial activity that is directly related to the environment (Winarsih, 2015).The look into about the determinant of CSR has been done by some researchers such as Arthana (2012) showed that public ownership and firm size have no significant effect on CSR disclosure. Meanwhile, leverage and profitability have a significant effect on CSR disclosure. However, it was a different research by Kusuma (2012). It showed that that firm size and public ownership have a significant effect on CSR disclosure and leverage does not affect the CSR disclosure. The research by Kusuma (2012) was support by Wijaya (2012), Zanirah (2012) and M. Nur D. Priantinah (2012) showed that firm size significantly influences, but to leverage and profitability does not affect the disclosure of social responsibility.Zanirah (2012) showed that the firm size has a positive significant effect and leverage has a negative effect, while profitability has no significant effect on CSR disclosure. M. Nur D. Priantinah (2012) showed that profitability and public ownership have no significant effect on CSR disclosure. Firm size has a positive significant effect and leverage has a negative significant effect. C. Putra (2012) has a different result compared with M. Nur D. Priantinah (2012) and Zanirah (2012). It showed that firm size has a significant effect on CSR disclosure in manufacture companies while leverage, profitability, and public ownership have no significant effect.From earlier studies that show the different effects on CSR disclosure exhibit the research gap with different variable and different object push the researcher to retest research by C. Putra (2012) by adding a variable to improve the results about THE EFFECT OF FIRM SIZE, PROFITABILITY, LEVERAGE, PUBLIC possession AND INDUSTRY SENSITIVITY ON CSR DISCLOSURE (A CASE S TUDY OF MANUFACTURING COMPANIES LISTED IN INDONESIA STOCK EXCHANGE YEAR 2013-2017)Research QuestionsBased on the background, the research questions that are discussed in this research areDoes firm size have a overtone effect to CSR disclosure on manufacturing companies listed in Indonesia storehouse switch at 2013-2017?Does profitability have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017?Does leverage have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017?Does public ownership have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017?Does industry sensitivity have a partial effect to CSR disclosure on manufacturing companies listed in Indonesia Stock Exchange at 2013-2017?Do firm size, profitability, leverage, public ownership and industry sensitivity have a simultaneous effect to CSR disclosure on man ufacturing companies listed in Indonesia Stock Exchange at 2013-2017?Research LimitationThe discussion of the problem is limited to affecting some variable to CSR disclosure, which consists of firm size, profitability, leverage, public ownership and industry sensitivity. The company which is observed is manufacturing companies listed on Indonesia Stock Exchange at 2013-2017.Research PurposeTo analyze whether firm size has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.To analyze whether profitability has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.To analyze whether leverage has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.To analyze whether public ownership has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.To analyze whether ind ustry sensitivity has a partial effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.To analyze whether firm size, profitability, leverage, public ownership and industry sensitivity have a simultaneous effect to CSR disclosure to manufacturing companies listed in Indonesia Stock Exchange at 2013-2017.BenefitFor CompanyThis study is expected to give information for manufacturing companies in preparing meaningful sustainability reports and making steady sustainability reporting and directed to standard practice.It contributes to the understanding of determinants of CSR disclosure to improve the implementation of disclosure guidelines.This study is expected to be an input for companies in doing consideration and decision making which will be useful in providing an additional value of the company.For investorAs an overview of CSR disclosure that serves as a reference for investment decision making.For accounting departmentAs a meaningful co ntribution to the accounting department to develop a study of financial management especially for CSR disclosure.For studentThis study helps extends the scope of previous studies by introducing independent and dependent variables engage with CSR.The results of this study are expected to be a reference and comparison for further research, which is a concern with the CSR disclosure.GlossaryFirm SizeFirm size is the number of assets owned by the company. Thus, the large and small of a company can be seen by its assets ADDIN CSL_CITATION citationItems id ITEM-1, itemData DOI 10.1017/CBO9781107415324.004, ISBN 9788578110796, ISSN 1098-6596, PMID 25246403, author dropping-particle , family Rahman, addicted Arif, non-dropping-particle , parse-names false, postfix , dropping-particle , family Widyasari, given Kurnia Nur, non-dropping-particle , parse-names false, suffix , container-title Jurnal Akuntansi Auditing Indonesia, id ITEM-1, issue 1, issued dat e-parts 2008 , page 25-35, title The analysis of company characteristic influence towards CSR disclosure Empirical evidence of manufacturing companies listed in JSX, type article-journal, pot 12 , uris http//www.mendeley.com/documents/?uuid=ad81e84f-e72e-4aeb-998f-b3df3f96da8f , mendeley formattedCitation (Rahman Widyasari, 2008), plainTextFormattedCitation (Rahman Widyasari, 2008), previouslyFormattedCitation (Rahman Widyasari, 2008) , properties noteIndex 9 , precis https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Rahman Widyasari, 2008).ProfitabilityProfitability measure the focus on company profits ADDIN CSL_CITATION citationItems id ITEM-1, itemData author dropping-particle , family Marcus, given Brealey Myers, non-dropping-particle , parse-names false, suffix , edition Lima, id ITEM-1, issued date-parts 2006 , number-of-pages 372, publisher Erlangga, title Dasar-Dasar Manajemen Keuangan Per usahaan Jilid 2, type book , uris http//www.mendeley.com/documents/?uuid=eaa4ed05-0031-4fc6-9f14-1d31d7503a15 , mendeley formattedCitation (Marcus, 2006), manualFormatting (Marcus, 2006, p. 80), plainTextFormattedCitation (Marcus, 2006), previouslyFormattedCitation (Marcus, 2006) , properties noteIndex 9 , schema https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Marcus, 2006, p. 80). Big companies are expected to pass water more profit than small companies. It also measures the using of the efficiency of company assets ADDIN CSL_CITATION citationItems id ITEM-1, itemData author dropping-particle , family Husnan, given Suad, non-dropping-particle , parse-names false, suffix , dropping-particle , family Enny Pudjiastuti, given , non-dropping-particle , parse-names false, suffix , edition Pertama, id ITEM-1, issued date-parts 1996 , publisher unit Penerbit dan Percetakan (UPP) AMP YKPN, publisher-place Yogyakarta, title Dasar-Dasar Manajemen Keuangan, type book , uris http//www.mendeley.com/documents/?uuid=561254b1-8c37-4dae-9f07-9552249e0f60 , mendeley formattedCitation (Husnan Enny Pudjiastuti, 1996), manualFormatting (Husnan Enny Pudjiastuti, 1996, p. 73), plainTextFormattedCitation (Husnan Enny Pudjiastuti, 1996), previouslyFormattedCitation (Husnan Enny Pudjiastuti, 1996) , properties noteIndex 9 , schema https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Husnan Enny Pudjiastuti, 1996, p. 73).LeverageLeverage means measuring the companys ability to converge its financial obligations. It can be that leverage is measure how far the company uses debt ADDIN CSL_CITATION citationItems id ITEM-1, itemData author dropping-particle , family Husnan, given Suad, non-dropping-particle , parse-names false, suffix , dropping-particle , family Enny Pudjiastuti, given , non-dropping-particle , parse-names false, suffix , edition Pertama, id ITEM-1, issued date-parts 1996 , publisher unit of measurement Penerbit dan Percetakan (UPP) AMP YKPN, publisher-place Yogyakarta, title Dasar-Dasar Manajemen Keuangan, type book , uris http//www.mendeley.com/documents/?uuid=561254b1-8c37-4dae-9f07-9552249e0f60 , mendeley formattedCitation (Husnan Enny Pudjiastuti, 1996), manualFormatting (Husnan Enny Pudjiastuti, 1996, p. 70), plainTextFormattedCitation (Husnan Enny Pudjiastuti, 1996), previouslyFormattedCitation (Husnan Enny Pudjiastuti, 1996) , properties noteIndex 9 , schema https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Husnan Enny Pudjiastuti, 1996, p. 70).Public OwnershipPublic ownership is the proportion of share ownership owned by the public of the companys shares ADDIN CSL_CITATION citationItems id ITEM-1, itemData author dropping-particle , family Arthana, given Ronny, non-dropping-particle , parse-names false, suffi x , container-title Jurnal Ilmiah Mahasiswa FEB UB, id ITEM-1, issue 2, issued date-parts 2012 , page 1-14, title Pengaruh Karakteristik Perusahaan Terhadap Pengungkapan Tanggung Jawab Sosial Perusahaan (CSR) Pada Perusahaan Yang Terdaftar Di Indeks LQ45 Bursa Saham Indonesia (BEI), type article-journal, volume 1 , uris http//www.mendeley.com/documents/?uuid=848daaaf-51e9-409e-b044-80ae139493e6 , mendeley formattedCitation (Arthana, 2012), plainTextFormattedCitation (Arthana, 2012), previouslyFormattedCitation (Arthana, 2012) , properties noteIndex 9 , schema https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Arthana, 2012). The bigger the share which is owned by the public, the more information will be explained, the investors want to get more information about its investment and make sure that it is safely managing then the obligation will be fulfilled.Industry SensitivityIndustry sensitivity can be interpreted as how big t he influence of industrial activity that is directly related to the environment ADDIN CSL_CITATION citationItems id ITEM-1, itemData author dropping-particle , family Winarsih, given Arga Mustika, non-dropping-particle , parse-names false, suffix , id ITEM-1, issued date-parts 2015 , title Pengaruh Media Online , Sensitivitas Industri Dan Struktur Corporate governing body Terhadap Kualitas Environmental Disclosure Governance (Studi Pada Perusahaan High Profile di BEI), type report , uris http//www.mendeley.com/documents/?uuid=d495d810-1aa1-41f2-8dc4-6690588eae85 , mendeley formattedCitation (Winarsih, 2015), plainTextFormattedCitation (Winarsih, 2015), previouslyFormattedCitation (Winarsih, 2015) , properties noteIndex 10 , schema https//github.com/citation-style-language/schema/raw/master/csl-citation.json (Winarsih, 2015).