| Summary: | 碩士 === 輔仁大學 === 國際經營管理碩士學位學程 === 107 === The study intended to determine the effect of corporate social responsibility on financial performance of both Islamic and conventional banks in Indonesia. Corporate social responsibility is firm’s commitment to contribute into sustainable economic development by working with employees, local community, and society at large to improve the quality of life in ways that are good for both business and development. Financial performance in this study was measured by profitability ratio of return on assets and therefore, act as the dependent variable. Six-year of secondary data, from 2013 to 2018, was obtained from both Islamic and conventional banks annual reports. The study used multiple regression analysis and the six years secondary data to analyze the effect of corporate social involvement on financial performance. This research also aims at identifying which categories of CSR, composed of Environment, Workplace Health and Safety, Employee, Product, and Community Involvement, proves to be more significant on financial performance. Lastly, this research also attempts to answer which type of banking perform better while implementing socially responsible actions in their operations. The findings indicate that the relationship is differ, positive for Conventional and negative for Islamic banks, with particularly significant for conventional banks. All dimensions of CSR are positively influence conventional bank’s financial performance, with environment, improved working conditions and actions toward community surrounding are found significantly increase its financial performance. However, only actions regarding community involvement performed by Islamic bank is proved to slightly influenced its financial performance. Furthermore, socially responsible activities engaged by Conventional banks found to slightly win over Islamic banks.
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