Impact of Corporate Social Responsibility Disclosure to Stockprice of Banking and Mining Industry Listed at Indonesia Stock Exchange (IDX)

Various researches indicate that the number of companies conducting disclosure or implementation of corporate social responsibility (CSR) is getting increased. A lot of companies are getting aware of the importance of application of corporate social responsibility (CSR) as part and strategy of business. Global survey for the Economist Global Intelligence unit indicates that 85% of senior executives and investors from various organizations have made corporate social responsibility (CSR) as main consideration in making decision. Although corporate social responsibility is still compulsory in character, but it can be said that almost all companies as available in Indonesia Stock Exchange have disclosed corporate social responsibility (CSR) in their annual report in various contents as it is forwarded by Sayekti (2006). The company is getting more conscious that the company survival also depends on company relationship with its community and environment where the company is operating. This matter is in line with legitimacy theory which states that company has contract with the community for conducting its activities based on the values of justice, and how the company is responding to various groups of interest for legitimizing the company action Tilt (1994). In Indonesia, CSR is stated in Law of Limited Liability Company No. 40 of 2007. In the Article under title the Competitive Advantage of Corporate Philanthropy as contained in Harvard Business Review of 2003, Michael E. Porter and Mark R Kramer said, so far the objective of economy and social tends to be seen from the viewpoint which is different and contradictory to each other. The company cannot be separated from the surrounding environment because basically the company really defends on the location where it is operating. The opinion of Milton Friedman American Research Journal of Business and Management ISSN-2379-1047 Volume 4, Issue 1, 8 Pages