CORPORATE SOCIAL REAPONSIBILITY

The company has a social obligation for what is happening around the community environment. In addition to using funds from shareholders, the company also uses funds from other resources that come from the public (consumers) so that it is fair if people have certain expectations of the company.
Dauman and Hargreaves (1992) in Hasibuan (2001) states that awab liability company can be divided into three levels as follows:
1. Basic responsibility (BR)
At the first level, connecting the first responsibility of a company, which arises because the existence of such companies as; company must pay taxes, comply with the law, employment standards, and satisfy shareholders. If responsibility is not fulfilled at this level will result in very serious ang.
2. Organization responsibility (OR)
At this second level shows the company's responsibility to meet the changing needs of "stakeholders" such as employees, shareholders, and the surrounding community.

3. Sociental responses (SR)
At the third level, shows the stages when the interaction between business and other forces in society so strong that the company can grow and develop in a sustainable, engaged with what happens in the environment as a whole. Corporate responsibility is not only limited to the company's financial performance, but also must be responsible for social problems caused by operational activities by the company.
The Teuku and supplement (1997) in a Nour Cahyonowati (2003) describe social responsibility as an obligation not only organizations that provide goods and services that are good for society, but also maintain the quality of social and physical environment, and also contributed positively to the welfare of the community where they are located. Meanwhile, according to Ivan Sevic (Hasibuan, 2001) social responsibility means that companies have a responsibility in actions that affect consumers, society and environment. In addition, Weston and Brigham (1990) states that companies should play an active role in supporting the welfare of society at large. Of the three terms above can be concluded that social responsibility is a form of accountability that should be firm, for both positive and negative impacts from operational activities, and perhaps more or less
affect the internal and external community in the corporate environment. In addition to profit-oriented activities, companies need to conduct other activities, such activities to provide a safe working environment for its employees, ensure that the production process does not pollute the environment around the company, placing their honest labor, to produce a safe product for consumers, and maintaining the external environment to achieve corporate social responsibility.
1. Disclosure of Corporate Social Responsibility According to Hackston and Milne, tangggung corporate social responsibility is often referred to as corporate social responsibility or social disclosure, corporate social reporting, social reporting is a process of communicating the social and environmental impacts of economic activities of organizations of special interest groups and on society overall (Sembiring, 2005). It is the responsibility of expanding the organization in this company, beyond its traditional role to provide financial reports to the investors, especially shareholders. The expansion was made with the assumption that the company has a broader responsibility than simply seek profits for shareholders (Gray et.al (1995) in Hasibuan (2001). According to Gray in Sembiring et.al (2005) there are two approaches that significantly different in conducting research on corporate social responsibility disclosure. First, the disclosure of corporate social responsibility may be treated as a supplement of the conventional accounting activities. This approach generally will consider the financial community as the primary users of corporate social responsibility disclosure and tends to limit the perception of responsibility reported social.
The second alternative approach by putting corporate social responsibility disclosure in a testing role of information in public relations and organization. This broader view has become the main source of progress in the understanding of disclosure of corporate social responsibility and is a major source of criticism against the disclosure of corporate social responsibility Many theories explaining why companies tend to disclose information relating to the activities and the impact caused by the company them. Gray et al (1995) in Henny
and Murtanto (2001) says there are three studies are:
1. Decision usefullness studies.
Most of the studies conducted by researchers who put forward this theory have found evidence that social information needed by the users of financial statements. In this case, analysts, bankers, and other parties involved in the study were asked to perform rating on accounting information. Accounting information is not limited to accounting information tradisioanal known so far, but also other information that is relatively new in the discourse of accounting. They put information on the position of corporate social activities are moderately Important for use as consideration by the users in decision making
2. Economic theory studies
This study uses agency theory and positive accounting theory, where theory menganalogikan management as an agent of a principal. In the use of agency theory, principals interpreted as a shareholder or other traditional users. But understanding the principals expanded to all companies concerned interest groups. As a management agent will attempt to operate the company in accordance with the wishes of the public (stakeholders).
3. Social studies and political theory.
Studies in this field using the theory of stakeholders, organizational legitimacy theory, and theory of political economy. The theory assumes that the existence of the company's stakeholders are determined by parastakeholders. Companies trying to find a justification of the stakeholders in the company's operations. Resulting greater the tendency of companies to adapt themselves against the wishes of their stakeholders.
According Murtanto (2006) in Media Accounting, disclosure of company performance is often done voluntarily (voluntary disclosure) by the company. As for the reasons companies voluntarily disclose social performance, among others:
1. Internal Decision Making: Management needs information to determine the effectiveness of a particular social information in achieving the social objectives of the company. Although it is difficult to be identified and measured, but simply analissis better than nothing at all sam
2. Product Differentiation: company managers have an incentive to differentiate themselves from competitors who are not socially responsible to the public. Contemporary accounting records do not separate the costs and benefits of corporate social activity in the financial statements, so the company is not social care will look more successful than the company that cares. This encourages companies to disclose social care information so that people can distinguish them from other companies.
3. Enlightened Self Interest: companies make disclosures to maintain social harmony with the stakeholders because they can affect sales revenue and the company's stock price. Social Accountability relates also to the social contract theory. According to this theory, among the company's business and the community there is a social contract that is implicitly or explicitly. Where the social contract, social accounting is used as a series of techniques of data collection and disclosure to enable the public to evaluate the social performance of organizations in giving an assessment on the feasibility of operating the organization according to Parker (2002) in a Nour Cahyonowati (2003). In addition, corporate responsibility is needed to assess whether the activities of the company has complied with, standards and regulations. For example, on pollution, health and safety, the danger of the use of toxic materials.
At the company begin to interact and close to the outer environment (society), then the developing relationship of mutual dependence and mutual interests and objectives between the company and existing social institutions. These interactions cause the company can no longer make decisions or policies that only benefit his party alone. But the company also must consider the needs of the parties interested in the company (stakeholder needs). If the pressure from stakeholders strongly affected the continuity and performance of the company then the company should be able to arrange social and environmental policies of targeted and legitimate (Nur Cahyonowati, 2003).
2 Factors Affecting Social Disclosure
Social activities the company is one of the components used in the annual report. The absence of standards regulating the reporting of corporate social activity causing the diversity of forms of social disclosure made by the company. Each company has different policies regarding social disclosure in accordance with the characteristics of the company. This raises a problem in measuring social disclosures. Therefore, measurement of social disclosure made by using a research instrument of social disclosure items list based on research conducted by Hackston and Milne (1996) Many factors can influence the social accountability, such as company size, profitability, size of the board of commissioners, as well as profile which is considered as a variable estimators in the disclosure of social responsibility. Given the many factors that affect social pertangggungjawaban, this research will see whether the company size, profitability, size of the board of commissioners, and the types of companies will have an effect or not on social responsibility by companies.
1 Size
Company size is a variable that is widely used to explain social disclosures by the company in the annual report is made. In general, large companies will disclose more information than smaller companies. This is because large companies will face greater political risk than small firms. Theoretically, large companies will not be free from political pressure, the pressure to perform social responsibility. Greater social disclosure is a political cost reductions for the company (Hasibuan, 2001). By expressing concern for the environment through financial reporting, then the company for a long time can avoid the huge costs resulting from the demands of society.
According to Buzby (Hasibuan 2001) there are allegations that the company would reveal little of poorer quality than large companies. This is due to lack of resources and substantial funds in the Annual Report. Management concerned with reveal more would jeopardize the company's position against other competitors. The availability of resources and funds to make the company feel the need to finance the provision of information for social accountability.
In addition, larger companies tend to have a public demand for information is higher than smaller companies. Another reason is the large enterprises and have greater agency costs of course will disclose information more widely this is done to reduce agency costs incurred. More shareholders, meaning also requires more disclosure, this is because tunt