Abstract:

Corporate Social Responsibility Disclosure (CSRD) has played significant role in business, through enhancing corporate transparency, developing corporate image, and providing the useful information on the investment decision making. This study aims to determine whether there is a discrepancy of CSRD between sharia and conventional banks in Indonesia, and which CSR aspects are better between the two of them. This study applied the quantitative approach using content analysis. The acquisition of data sources include financial statements in the form of annual report of sharia and conventional banking companies in 2011-2014, which contains data related to CSR. In measurement, CSR of Conventional Bank is measured by Global Reporting Initiative (GRI) Index, while CSR of sharia bank is measured by Islamic Social Reporting (ISR) Index. The results of this study indicate that there are significant differences in CSRD of sharia and conventional banks. On average, CSRD of sharia banks is higher than conventional banks. The weaknesses of CSRD of sharia banks are in the aspect of environment and general information, while the weaknesses of CSRD of conventional banks are in the aspects of energy, health and safety of employee, product, and society’s involvement. Due to the limitation of this study in compiling aspects of variables present on GRI and ISR, it is suggested for the future study to do further detail analysis to compile and to have it combined with the primary data in order to know the precise quality of data disclosed by each banks.