DETERMINANTS OF CORPORATE SOCIAL PERFORMANCE (CSP) THROUGH CORPORATE SOCIAL RESPONSIBILITY (CSR)OF FOREIGN INVESTMENT COMPANIES (PMA) IN INDONESIA

This research studied internal and external determinants of CSP. This study was based on stakeholder theory which discusses the role of various stakeholders in determining the continuity of a company. The difference between this study and a previous study was the previous study only tests several variables, whether internal or external variables which influence CSR, while the current study combined many models and was based on stakeholder theory. The study was performed on 127 foreign companies in North Sumatera Province, Indonesia. The tested variables were internal factors and external relations of CSP through CSR as an intervening variable. The analysis technique used was Structural Equation Model (SEM) with the help of Amos software version 21. The research result showed that internal and external determinants of CSR wereCompany Policy (CP), Company Reputation (CR), Employee Engagement (EE), Government Regulation (PP), Community Empowerment, customer, and Mass Media (MP) influencedCorporate Social Performance (CSP) through Corporate Social Responsibility (CSR). The limitation of this study was samples were limited to foreign investment companies, so there might be sample bias in Domestic Investment Companies (PMDN). There was also difficulty in collecting dta, causing delay in observation period. This study also didn’t discuss company financial data, so it couldn’t assess the financial performance produced by CSR expenses. The suggestions for future studies are to implement this research on companies listed in Indonesia Stock Exchange, to check the implementation of CSR in public companies in Indonesia. This study contributes to regulations at local governments, so that they can check Corporate Social Performance in their regions by publishing local regulations on CSR.