Analysis of Company Size and Profitability on Islamic Social Responsibility Disclosure

The aim of this research is to analyze the determinants of Islamic Social Responsibility disclosure, namely company size and profitability. The research sample is 19 mining sub-sector companies listed on the Indonesian Sharia Stock Index (ISSI). Data were observed during 2019-2020 using the panel data technique, so that as many as 38 data were observed for analysis. Methods of data analysis with multiple regression analysis techniques. The results of the study show that company size has a significant positive effect on Islamic Social Responsibility, while profitability has no significant effect on Islamic Social Responsibility. Original research regarding CSR disclosure based on Islamic concepts in mining companies which are companies that carry out activities that are very sensitive to environmental pollution. Theoretical research implications regarding the development of CSR disclosure within the framework of the Islamic concept. Then practically it becomes a material consideration for company management to reveal Islamic Social Responsibility information © 2022 The Author(s). Published by International Ecsis Association. This is an open access article under the Creative Commons Attribution-ShareAlike 4.0 International License.


Introduction
Corporations are often blamed for contributing to global warming by industrial process, consuming fossil fuel, land use change, and so on (Bereznoy, 2022;Escobar-Sierra et al., 2021;Younis et al., 2020).Basically, business is part of the problem and as a solution (Ipsen et al., 2019;Khan & Johl, 2019;Md Mashud et al., 2021).Therefore, companies are continuously encouraged to take action quickly and effectively by considering the strength of responsible business (Girschik, 2020;Gold & Heikkurinen, 2018;Van Buren et al., 2020) to create a better human life and environment (Backnik et al., 2022).Economically, the main purpose of the company's existence is to make a profit, be able to survive, and be able to provide incentives to shareholders.Therefore, the company must have sufficient resources to continue its company operations.However, in doing its business, the company must also be able to benefit other stakeholders (Carroll, 2016).In other words, corporate responsibilities related to economic, social and environmental performance measures are important for companies to pay attention to (Deegan, 2014;El Akremi et al., 2018;Müller & Voigt, 2018;Ranjbari et al., 2021;Tate & Bals, 2018).Social responsibility includes; economic, legal, environmental aspects (Tan, et.al.,2022).Thus, the company in carrying out its activities not only pursues economic benefits, but also needs to pay attention to social aspects, so that all stakeholders can benefit from the existence of the company (Briscese et al., 2021;Galinato et al., 2022;Wagner-Tsukamoto, 2019).
Scope of Corporate Social Responsibility (CSR) concept highlighting the company's concern in maintaining a balance between business interests and community interests (Leite & Padgett, 2011).For example, attention to the balance between company performance and labor compensation (Diaye et al., 2023;Hayat & Afshari, 2022;Loor-Zambrano et al., 2022).Companies are part of society, therefore they must take social responsibility in making policies and strategic planning (Tafti et al., 2012).Mining companies are engaged in the utilization of natural resources.Directly or indirectly, it must have an impact on the surrounding environment.So there needs to be awareness of company management on the importance of social and environmental responsibility to discuss management's awareness of social responsibility.
CSR is a framework in discussing the company's business responsibility in conducting social interactions with the community (Carroll & Brown, 2018).In fact, the concept of CSR is not only developing in the domain of conventional economics, but also developing in the domain of Islamic economics (Harun et al., 2020).In the Islamic concept, man functions as God's representative, so man is obliged to take care of God's creation and not do damage to God's creation (Siwar & Hossain, 2009).Man acts as a caliph and servant, so in managing the resources owned by Allah, man must be responsible to Allah as the creator of the universe (Hussain et al., 2021).Therefore, the company must consider environmental factors in its operation process as a form of responsibility towards God's creation around the company's environment.A teaching of Islam prohibits humans from damaging the surrounding environment, either directly or indirectly.In addition, Muslims are required to be the frontline in protecting and preserving the environment.Islam commands its people to take care of nature, "Do no mischief on the earth after it has been well created…."(Q.S. Al -Araf: 56).
The concept of CSR that uses an Islamic approach is called Islamic Social Responsibility (ISR).ISR is developed based on the principles of tawhid, sharia law and ethics (Atiqah & Rahma, 2018;Darus et al., 2015).In general, companies adopt the concept of Islamic Social Responsibility (Al-Silefanee et al., 2022;Bhatti et al., 2016;Maham & Bhatti, 2019) to attract and retain the Muslim consumer market.However, research on revealing social responsibility based on Islamic values is still very limited.Islam provides comprehensive guidelines to the business community to maintain their relationships with various stakeholders including the environment, customers, society and employees (Hussain et al., 2021).Therefore, the size of the company and the profitability of the company are important factors determining disclosure ISR (Hussain et al., 2021).

Legitimacy Theory
Legitimacy theory was used in this study to explain the relationship between company size and profitability with ISR disclosure.Legitimacy theory explains that if a company is concerned about its legitimacy, ISR disclosure is effective (Deegan, 2014).Legitimacy theory is a mechanism that supports organizations in implementing and developing social and environmental disclosures to fulfill the social contract, legitimacy, profitability and survival (Akhter et al., 2022;Nguyen et al., 2021;Soewarno et al., 2019).Social responsibility reporting as an effort to meet public demands for company transparency, that company actions benefit the community (Esterhuyse, 2019;La Brooy et al., 2020;Lee & Comello, 2019).According to legitimacy theory, increased transparency indicates companies share common goals with society (La Brooy et al., 2020).
The larger the size of the company, the greater the attention of stakeholders to the company.Legitimacy theory explains that large companies will increasingly be concerned with disclosing their social responsibility in order to attract stakeholder sympathy.High profit is also a motivation for companies to be more responsible to the community.The company have to protect the environment to maintain profits in the long run (Akhter et al., 2022;Albuquerque et al., 2019;Khosroshahi et al., 2021;Michelon et al., 2020).This article aims to analyze the size of the company and the profitability of the company as determining factors Islamic Social Responsibility (ISR) in mining companies listed on the Indonesia Sharia Stock Index.

Methods
The study used a quantitative approach.The research was conducted on mining sector companies listed on the Indonesian Sharia Stock Index (ISSI).The reason why the author chooses mining sector companies is because the company's activities are directly related to the environment and society which are part of a company's social responsibility.The number of samples is 19 companies.Data was collected through documentation in the form of annual reports for each company for two periods, namely 2019 and 2020.The research was conducted on mining companies listed on the Indonesian Sharia Stock Index.
Company size (SIZE) and profitability (PROF) are independent variable measured using proxies adopted from the study (Hussain et al., 2021), the size of the company is proxied by Logaritma Natural (Ln) of total assets and profitability measured by proxy Return on Aset (ROA).Then pengexpression of Islamic Social Responsibility (ISR) is a dependent variable measured using ISR Index which consists of six dimensions, namely: (1) Vission and mission statement, (2) Products and services, (3) Zakah, alms and good and halal funding, (4) Commitment to employees, (5) Commitment to debtors, ( 6) Commitment to society.The dimensions were expanded into 56 statement items (Platonova et al., 2018).Scoring method for each item is zero and one; value "0" for each item not disclosed; value "1" for each item disclosed.
Furthermore, the measurement of the ISR index after scoring is carried out with the following formula (Kalbuana et al., 2019):

Data analysis uses multiple regression analysis techniques with equation models as follows:
ISR = β1SIZE + β2PROF + e1

Results
The results of the descriptive analysis in table 1 show the variable Islamic Social Responsibility (ISR) has a mean value of 0,452 and a standard deviation of 0,079, company size (SIZE) has a mean value of 29,553 and standard deviation 1,234; profitability (PROF) has a mean value 0,081 and standard deviation 0,062.This result shows that the data for all variables is good data to analyze because the mean value is greater than the standard deviation value.The statistical results presented in table 2, show a statistical F value of 8,641 and a significant p-value of 0.001 is smaller than 0.05, so that the research model is good for further analysis.The determining factors of ISR are company size (SIZE) and profitability (PROF), where the variable coefficient value of the company size has a positive coefficient of 0.531, The statistical tvalue of 3.640 and the significant p-value of 0.000 is less than 0.05.These results show that the size of the company has a significant positive effect on Islamic Social Responsibility, thus H1 is accepted.

Discussion
Company size has a significant positive effect on disclosure Islamic Social Responsibility.This result means the larger the size of the company the more increased disclosure Islamic Social Responsibility (Dias et al., 2019;Sardana et al., 2020).Large companies always come under greater pressure from stakeholders, so CSR disclosure can act as a promotion to gain legitimacy and respond better to demands (Díez et al., 2020).Large companies will always get attention from stakeholders, so greater effort is needed to gain legitimacy from stakeholders.
This strategy aims to create alignment of social activity values and disclose more corporate social responsibility information (Syahierah & Larasati, 2019).These results support research conducted by Siregar & Bachtiar (2010), Wardani & Sari (2018) and Syahierah & Larasati (2019) that is, the size of the company has a significant positive effect on Islamic Social Responsibility.
Profitability has an insignificant negative effect on disclosure of Islamic Social Responsibility.These results show that profitability does not guarantee the company disclose Islamic Social Responsibility.In the Islamic view, a company that has the intention to make social disclosures will not consider whether the company is in the condition of profit or loss (Sukardi et al., 2022).However, these results do not fit with the legitimacy theory which states that companies are profitable more responsible to society.This is because they have to protect company by protecting the environment to maintain profits in the long run (Akhter et al., 2022).

Conclusion
The purpose of the study was to analyze the determinants of Islamic Social Responsibility disclosure, namely the size and profitability of the company.The results showed that thecompany's measurement had a significant positive effect on Islamic Social Responsibility, while profitability had a negative effect on Islamic Social Responsibility.Theoretically, this research has implications for the development of science related to CSR disclosure within the framework of Islamic concepts.Then practically become a consideration for company management to disclose Islamic Social Responsibility information.Research has limitations, namely from the aspect of variables and years observed are still small, so that further research can add other variables as determinants of Islamic Social Responsibility disclosure.The Figure 1: Conceptual framework

Table 2 .
Test the hypothesis