Impact of ESG/Corporate Social Responsibility on Company Performance Before and During Covid 19 Crisis: Study of Listed Companies in Indonesia

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Impact of ESG/Corporate Social Responsibility on Company Performance Before and During Covid 19 Crisis: Study of Listed

Companies in Indonesia

Ady Widya Mitra^1*, Eka Pria Anas¹

1 Faculty of Economics & Business, University of Indonesia, Jakarta, Indonesia

*Corresponding Author: [email protected]

Accepted: 15 July 2021 | Published: 1 August 2021

__________________________________________________________________________________________

Abstract: CSR has been proven to have a positive impact on the organization's performance.

However, the COVID-19 pandemic has brought a new perspective to the organization. The pandemic had forced the organization to rethink how corporate social responsibility programs can contribute more to the organization's performance in terms of increased profit while still maintaining their cause and motivation. This research aims to examine whether corporate social responsibility impacts organization performance before and during the Covid-19 pandemic. This research applied case study methods to determine CSR factors that are measured in Environment, Social, and Governance indicators. While there are many ways to construct a company’s environmental, social, and governance (ESG) score or rating, involving different combinations of financial output based on constituent aspects; customer factor, market factor, and financial factor. In this study, the authors deconstruct ESG rating performance at the E, S, and G pillar levels and use key issues indicators that underlie environment, social-community, social-employee, and governance aspects. Based on the measurement of company performance from 2018 to 2020 of public listed companies registered in the LQ45 index, the authors also find that a more balanced and industry-specific weighting of E, S, and G issues showed better long-term performance. This study finds that the time horizon used has an important bearing on the indicators’ significance, while in pre-pandemic ESG/CSR in environment aspect has the most impact on the company performance. During pandemic ESG/CSR in social and, governance aspect is the most impact on company performance.

Keywords: ESG, CSR, Corporate Performance, Covid-19, LQ45

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1. Introduction

The condition and situation of the COVID 19 pandemic change the social order and interaction in the world, in addition to health. Not only there, but pandemics also have a significant impact in suppressing the condition of the world economy. The disease caused by this newly discovered type of coronavirus is now a pandemic occurring in many countries around the world (World Health Organization, 2020). COVID 19 makes us reflect on the fragile world order we are currently in. An unexpected event, often called the Black Swan Event, makes us rethink how we communicate, interact, and do our daily activities including work and school.

A stressful condition in dealing with the COVID 19 pandemic condition also impacting Indonesia's COVID 19 both economics and health. While in Indonesia COVID 19 already taken victims to almost 1 million peoples, with a total of 977.474 cases, and 27.453 confirmed

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deaths (Worldometers, 2021). COVID 19 also made huge impacts on the economics, while Indonesia's economic growth contracted to negative -3.49% in 2020, which was previously at minus 5.32 percent in the second quarter year-on-year (YoY).

Due to this condition, companies whose regions implement social restriction, must comply with and implement work from home, causing a shift in working methods, such as face-to-face meetings to be online, the use of applications and gadgets connected through the internet. For companies familiar with technology (such as the service industry that in everyday life already uses indirect meeting methods to carry out its business activities) this shift in working methods may not have a significant impact financially or in the process of work. However, for companies that must require face-to-face, such as the manufacturing sector, transportation sector, and tourism sector this condition greatly affects the condition of the company. Some have to take a rescue approach to financial conditions, such as slashing the number of wages paid, housing until the termination of employment of employees.

But this moment can also be used for the utilization of philanthropic movements or generosity in areas such as health, environment, and social, as well as corporate social responsibility (CSR) companies can be an option of choice as an effort to reduce the burden of society in the current condition both by organizations and individuals. (Harian Kompas, 2020). Minister of Health period 2012-2014, Nafsiah Mboi in the webinar "Exploring the Potential of Philanthropy for Healthy Indonesia" said that philanthropy can help the health cadres amid many health services posts that do not operate in several areas because of budget constraints.

For a long time community-based business development or what is now familiarly called CSR is often associated with philanthropic activities that are separate from the main activities of the business itself (Kotler & Lee, 2005) In general, this is because CSR activities are considered to have no benefit to the business directly, nor does it contribute to the development of the company. But slowly, there began to be a change in mindset regarding benefits and how CSR activities can contribute and bring impact to the company (Kotler & Lee, 2005). CSR is a commitment to organizational activities as a form of a contribution to improve the welfare of the affected parties and /or related to the company's activities. (Kotler & Lee, 2005)

Currently, CSR is no longer seen as a counterbalance (Majumdar & Saini, 2016) that needs to be fulfilled through activities or charitable activities to the community that the organization needs to do following the mandate of the law, but also a form of organizational commitment to concern for the community, and the environment. For companies, this pandemic condition can also be used to conduct CSR practices as a form of responsibility and implementation of corporate obligations in making social contributions to the community. Besides, in the current condition, the company's CSR will feel more useful, meaningful, and felt by the community.

So that for companies utilizing the current CSR implementation moment has the potential of long-term benefits that can be obtained by the company both to the company's image, the realization of a culture of concern in the company, and the achievement of a balance between financial growth and corporate concern.

Implementing CSR in the middle of a pandemic situation has its challenges and impacts for the company. Amid economic pressures due to the cut in purchasing power, and restrictions on work activities, which led to pressures on the company's revenue and production operational performance, CSR also requires costs and resources not least that add to the company's burden.

Amid pandemic conditions that also suppress the fundamental condition of the company. The company needs to understand and understand the factors that can make the company still carry

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out its obligations and concerns to act following ethics and responsibility, with existing resources, and conditions that risk the sustainability of the company. Because in the future activities based on concern for ESG / CSR can make a positive contribution to the company such as improving performance, employee motivation, and a positive image in the eyes of consumers.

CSR also brings benefits to the company according to He and Harris (2020) organizations that conduct CSR sincerely, will be able to build stronger relationships with consumers and society.

Building strong expectations as a leading brand, as a form of participation, and a willingness to face pandemics. Consumers will feel proud of the brand of products they use to have concern for employees, through donations and even equipment that supports or can contribute to ease the burden during the crisis. The bond between the brand (organization) and its consumers in times of crisis, can be more meaningful and last longer than in normal situations. Therefore, this pandemic condition can be an opportunity for companies to actively, care for, and participate in social activities such as CSR.

Nevertheless, while the research on CSR has been done before during the crisis, it has never been done in certain pandemic conditions. This research aims to analyse the impact of CSR amid pandemic conditions that not only impacted economics but also both health and social condition. Using 45 listed companies that are most often traded in Indonesia Exchange Market (IDX), the target is to give enlightenment about how CSR/ESG makes a positive impact on the companies let alone in very distressing situations. Measuring performance history from 2018 to 2020 at public listed companies registered in the LQ45 index, the authors also find that a more balanced and industry-specific weighting of E, S, and G issues showed better long-term performance. This research also finds that organizations with higher ESG ratings that consistently do CSR activities have better performance than lower ESG ratings during COVID- 19.

2. Literature Review

Definition of ESG/CSR

ESG stands for Environmental, Social, and Governance. Often used by investors as an aspect of non-financial analysis, to identify potential risks and opportunities to develop from a company. ESG is generally separate from the financial statements section, which is reported through sustainability reports. The first use of the ESG factor was in 2004, by 20 financial organizations as a development at the request of Kofi Anon, the then Secretary-General of the United Nations (United Nation Development Program, 2017). ESG becomes a reference to organizations and investors to take into account and put concerns on environmental, social, and governance aspects in their business models.

CSR (Gillan, Koch, & Starks, 2021) generally defines an activity conducted by the organization/company as a form of concern to the community. The difference between CSR and ESG is that in ESG there are aspects of governance explicitly, where CSR does not directly indicate governance, but equally attaches importance to the impact of benefits on the environment and society. ESG also has a wider tendency than CSR.

Organizations are increasingly aware of and responding to this approach. They care not only about the economic aspect of the bottom line of the company/ organization alone but also about 2 other aspects, namely; social and environmental affairs. It is now more commonly called the triple bottom line; profit, people (social), and planet (environment). This approach also has the

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benefit of shareholders. According to the OECD (Corporate Governance 4th Edition, 2013) it also states that 'the management of organizations based on concern and responsibility towards the community is aligned with economic objectives to create long-term profitable growth and create value for shareholders.'

CSR is no longer seen as a counterbalance (Majumdar & Saini, 2016) that needs to be fulfilled through activities or charitable activities to the community that the organization needs to do following the mandate of the law, but also a form of organizational commitment to concern for the community, and the environment. For companies, this pandemic condition can also be used to conduct CSR practices as a form of responsibility and implementation of corporate obligations in making social contributions to the community. Besides, in the current condition, the company's CSR will feel more useful, meaningful, and felt by the community. So that for companies utilizing the current CSR implementation moment has the potential of long-term benefits that can be obtained by the company both to the company's image, the realization of a culture of concern in the company, and the achievement of a balance between financial growth and corporate concern.

In 2001, Heinkel et al. (2001), found that companies that have a low level of concern for the environment tend not to attract or liked by investors, resulting in low share prices and high cost of capital from companies. Similar to Pedersen (Pedersen, Fitzgibbons, & Pomorski, 2020) which explicitly assumes that there are 3 types of investors, namely those who have the awareness and desire to invest in shares of green companies, as well as those who want to invest in brown firms, also who do not care about the category. Furthermore, Pedersen also found that the factor of investors who do not care about categorization is what affects the capital costs of the company.

CSR also brings benefits to the company according to He and Harris (2020) organizations that conduct CSR sincerely, will be able to build stronger relationships with consumers and society.

Building strong expectations as a leading brand, as a form of participation, and a willingness to face pandemics. Consumers will feel proud of the brand of products they use to have concern for employees, through donations and even equipment that supports or can contribute to ease the burden during the crisis. The bond between the brand (organization) and its consumers in times of crisis, can be more meaningful and last longer than in normal situations. Therefore, this pandemic condition can be an opportunity for companies to actively, care for, and participate in social activities such as CSR.

Research conducted by Hartzmark &Abigail ( Do Investors Value Sustainability? A Natural Experiment, 2019) concludes that today investors value companies that care more about sustainability. Hasan Fawzi, Development Director of IDX (Investor Daily, 2021) said that the demand for products/companies implementing ESG implementation has increased. He also added that there is research that mentions that the implementation of ESG has a positive influence on the company's share price.

Nevertheless, while the research on CSR has been done before during the crisis, it has never been done in certain pandemic conditions. This research aims to analyze the impact of CSR amid pandemic conditions that not only impacted economics but also both health and social condition. Using 45 listed companies that are most often traded in Indonesia Exchange Market (IDX), the target is to give enlightenment about how CSR/ESG makes a positive impact on the companies let alone in very distressing situations.

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Using performance history from 2018 to 2020 at public listed companies registered in the LQ45 index, the authors also find that a more balanced and industry-specific weighting of E, S, and G issues showed better long-term performance. This research also finds that organizations with higher ESG ratings that consistently do CSR activities have better performance than lower ESG ratings during COVID-19.

ESG/CSR Measurement

There is a variety of academic and non-academic research on the application of CSR in the scope of benefits and influence on companies and stakeholders. Although according to Juniati (2009) the topic of concern for the environment, society and CSR is currently in the spotlight and increasing. There are various variables, as well as limitations regarding CSR measurements because social conditions and impacts are not easily measured by simple mathematical formulas. With a variety of results and diverse measurement methods. Currently, there are several methods of measurement of CSR activities conducted by the company, which can use the framework owned by KLD Research &Analytics (now a Risk Metrics Group / RMG) as well as from activity reports including CSR conducted following the sustainable reporting guideline (SRG). The method of analysis can then use qualitative approach, or also quantitative which is then done statistical equation analysis.

In Indonesia, there is a National Centre for Sustainability Report (NCSR) which is an independent organization in the field of sustainable reporting development, knowledge, and practices on sustainable management of companies oriented towards social responsibility, business ethics, and the environment for Indonesia to increase sustainable development (National Center for Sustainability Reporting, 2021). Established to increase corporate and professional awareness in Indonesia about awareness of 3 principles, namely: Economic, Social, and Environment (ESG). They're also there is an independent rating company called CSRHub. CSRHub is an independent institution that has been rating CSR/ESG performance with a total of more than 18,393 companies from 148 countries. CSRhub is a reference in conducting ESG analyst, crowd, government, publication, &and not-for-profit data. (CSRHub, 2021).

CSRhub is using aggregates ESG data using data from various analytical institutions and data providers such as Institutional Shareholder Services (ISS), MSCI (ESG Intangible Value Assessment, ESG Impact Monitor, and ESG Carbon Metrics), Trucost, and Vigeo EIRIS.

CSRhub (2014) uses 4 categories, with 12 sub-categories to assess the quality of the company's ESG/CSR. Which categories consist of:

1) Environment, 2) Social-Community, 3) Social-Employee, 4) Governance.

Performance Measurement

According to Helfert (2012) performance is the level of success over a certain period in carrying out goals, compared to the target, work standards, or initial goals given and agreed upon together. Performance can be seen as a display of an achievement that has been achieved, can also be seen partly or per the aspects reviewed. Sriwati (2012) argues that performance is a general term used to denote some or all of the actions or activities of the organization in a certain period, so that performance measurement becomes a measurement action that can be implemented against various activities in the company.

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In the measurement of the company's performance, Chandler and Henks (2010) stated that there are two approaches, namely objective and subjective. The objective approach is a type of approach using objective data such as financial data, while the subjective approach is used by measuring the company's performance based on the perception of related parties (management, consumers, employees, etc.) to the company's performance. The company's performance is a measure used to measure the company's success in achieving the goals that have been set, aspects of organizational strategic objectives, consumer satisfaction, as well as contributions to the economy, also related to performance as said Armstrong and Baron (2012).

Organizational performance according to Robert Simmons (2014) is a level of organizational achievement in creating value for constituents. Performance assessment, especially, can be seen and determined from the achievement of business objectives contained and divided into various business units in the organization. Companies with good performance can consistently value from time to time; not owned by a low-performing company. Simmons added that the organization's performance can be assessed based on financial and non-financial aspects, which are divided into customer market, factor market, and financial market. To see the value creation from the point of view of organizational performance, we can separate it according to the classification of constituents, namely: customers, suppliers, owners, and creditors.

1. Corporate Performance from the Perspective of Customer Markets

a. Revenue or Revenue Growth measures the level of consumer desire to buy back the products/services offered through measurement of the company revenue.

b. Gross Profit Margin, can be used to reflect the level of consumer desire/willingness to pay 'more/premium' for a product/service offered by the company.

2. Corporate Performance from the Perspective of Factor Markets

a. EBIT is an indicator of a company's profitability that is referred to as operating earnings, operating profit, and profit before interest and taxes.

b. Days Payable Outstanding measures how well a company is managing its accounts payable, to utilizing its credit period offered by creditors, high DPO may cause suppliers to label the company as a “bad client” and impose credit restrictions while low DPO may indicate that the company is not fully utilizing its cash position and may indicate an inefficiently operating company.

3. Corporate Performance from the Perspective of Financial Markets

a. Net Profit refers to the amount of money left over after various expenses have been subtracted from the total revenue. A low or negative net profit is indicative of various issues such as fewer sales, poor management of expenses, poor marketing, ineffective pricing, poor customer service experience from employees, and more. A high or positive net profit can be attributed to several favorable variables.

b. ROIC is a calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. The return on invested capital ratio gives a sense of how well a company is using its capital to generate profits.

c. Market Capitalization refers to how much a company is worth as determined by the stock market. It is defined as the total market value of all outstanding shares.

3. Discussion and Conclussion

Using quantitative case study research method, this researched is using nonprobability sampling or purposive sampling, to determine the sample to be studied. (Cooper & Schindler,

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2014). The description of the case study depends on the circumstances of the case but still considers the time. By comparing the conditions before the pandemic that is 2018, 2019, and when the pandemic is 2020. The object of the research is a public company listed on the Indonesia Stock Exchange (IDX). The research will focus on companies listed on the LQ45 Index, or Index stock indexes that measure the price performance of 45 stocks that have high liquidity and large market capitalization and are supported by good corporate fundamentals (Bursa Efek Indonesia, 2021). Indonesia Stock Exchange classified companies into various categories into 9 business sectors, with a total of 700 registered companies that can be transacted through IDX. (Kontan.co.id, 2020). Based on the latest February data from the Indonesia Stock Exchange (2021), a case study will be conducted against LQ45 companies.

Table 1: LQ45 Companies by Sector

Sector Total

Basic Industry and Chemicals 7

Consumer Goods Industry 6

Finance 6

Infrastructure, Utilities & Transportation 6

Mining 7

Miscellaneous Industry 1

Property, Real Estate and Building Construction 6

Trade Services Investment 6

Total 45

Analyze the form of social assistance (CSR) provided by the company, as well as ESG / CSR scores and the impact on the company's performance with different periods; before COVID-19 occurred, namely in 2018, 2019, and during the pandemic in 2020. There are 28 companies in which have complete data set of financial reporting and ESG/CSR scores from 2018 to 2020 to be analyzed further.

This research is causal explanatory in the form of a survey that aims to determine the pattern of causal relationships between variables; ESG/CSR, with the company's performance. This causal explanatory research can be said to be a hypothesis-testing study that tests the causal relationship between the variables studied to provide an overview or description in its description to produce a construct or a phenomenon based on relationship models derived from theoretical models. To find out the relationship between some free variables and bound variables then after testing the hypothesis then continued with the test model relationship (Sekaran, 2006).

By scoring environment, social-community, social-employee, and governance activities against each company. From the data obtained, it is obtained that despite pressures on companies that reduce performance or ESG/CSR activities, performance changes measured by scores occur. This study found that there was a shift in the average rating value of ESG/CSR activities for the 28 companies listed in the LQ45 index.

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Table 2: ESG/CSR Scores of LQ45 Companies by Sectors Before and During COVID

Sector ESG/CSR Score

Before COVID

ESG/CSR Score

During COVID Growth

Basic Industry and Chemicals 50.59 48.79 -3.56%

Consumer Goods Industry 51.14 43.33 -15.27%

Finance 55.16 51.55 -6.54%

Infrastructure, Utilities &

Transportation 54.40 48.96 -10.00%

Mining 57.97 49.83 -14.04%

Miscellaneous Industry 53.33 50.75 -4.84%

Property, Real Estate and Building

Construction 54.67 44.90 -17.87%

Trade Services Investment 51.51 46.89 -8.97%

Average 53.60 48.13 -10.14%

In the period before COVID, the industrial sector with the highest score was obtained by the mining sector, with the highest individual score obtained by Vale Indonesia (Vale) with a score of 64.96, then Indotambang Megah Raya with 64.42, and Aneka Tambang (Antam) with 59.13.

While at the individual level, the highest individual score was obtained by Wijaya Karya (Persero) with 76.65, then Vale Indonesia with 64.96, and Indo Tambang Megah Raya with 64.42 in third place.

While in the period when COVID occurred, the score based on the highest sector was obtained by the financial sector, with a score of 51.55, which was followed by the multi-industry sector with 50.75, and the mining sector in third place with 49.83. In this period, it was found that the highest individual score was still held by Wijaya Karya (Persero) with 60.29, which was followed by Japfa Comfeed Indonesia with 57.54, and Bank Rakyat Indonesia (Persero) with 56.68.

Impact of ESG/CSR on Organization Performance before COVID.

Table 3: Coefficient And P-Value Values on Structural Models of ESG/CSR Impact on Organizational Performance before COVID 19

Path Structural

Coefficient P-VALUE Conclusion Environment → Customer

Factor 0.139 0.219 Not-Significant

Environment → Market

Factor 0.530 0.001 Significant

Environment → Financial

Community → Customer

Community → Market Factor 0.157 0.188 Not-Significant

Community → Financial

Employee → Customer Factor 0.117 0.259 Not-Significant

Employee → Market Factor 0.017 0.464 Not-Significant

Employee → Financial Factor 0.110 0.272 Not-Significant

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Coefficient P-VALUE Conclusion Government → Customer

Government → Market Factor 0.303 0.036 Significant

Government → Financial

The results of the analysis showed that in the conditions before COVID 19, concern for the environment was able to have a positive influence on the performance of the organization, especially judging by market factors; measured through the company's EBIT growth, as well as the financial market; assessed by net profit, market capitalization, and ROI. While the result of the structural coefficient is positive 0.53 shows every 1 variation of the standard deviation in ESG / CSR in the form of environmental (environment) causes 0.53 variations in organizational performance deviation. Based on Figure 11, it appears that the effect sizes for the path are 41.7%. This means that the influence of ESG / CSR in the form of Environment on the performance of the organization (financial market) is in the high category. Similarly, the performance of the organization from the point of view of market factors, which has a structural coefficient of 0.637, with a p-value rate of 0.001 or significant at α=0.05, also has an effect size of 28.6%.

The results of this study are in line with the theory previously presented that ESG /CSR can be a driving factor to improve organizational performance so that companies that are responsible for the environment have better value and performance than companies that do not care about the environment. In general, this is in line with the exposure of Heinkel et al. (2001), which found that companies that have a low level of concern for the environment tend not to be attracted or liked by investors, resulting in low share prices and high cost of capital from companies. Similar to Pedersen (Pedersen, Fitzgibbons, & Pomorski, 2020)which explicitly assumes that there are 3 types of investors, namely those who have the awareness and desire to invest in shares of green companies, as well as those who want to invest in brown firms, also who do not care about the category. Furthermore, Pedersen also found that the factor of investors who do not care about the categorization is what affects the capital costs of the company.

Impact of ESG/CSR on Organization Performance during COVID.

Table 4: Coefficient And P-Value Values on Structural Models of ESG/CSR Impact on Organizational Performance during COVID 19

Coefficient P-VALUE Conclusion Environment → Customer

Environment → Market

Environment → Financial

Community → Customer

Community → Market Factor 0.410 0.001 Significant

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Coefficient P-VALUE Conclusion Community → Financial

Employee → Customer Factor 0.470 0.01 Significant

Employee → Market Factor 0.320 0.03 Significant

Employee → Financial Factor 0.150 0.20 Not-Significant

Government → Customer

Government → Market Factor 0.330 0.03 Significant

Government → Financial

Based on the hypothesis testing, it appears that ESG/CSR conducted against the community has a p-value of 0.001 or significant at α=0.05 and a positive structural coefficient of 0.41. The results of the analysis showed that in the current condition of COVID 19, concern for the condition of the community and the community can positively influence the performance of the organization, especially judging by the market factors; measured through the company's EBIT growth. While the result of the structural coefficient of positive 0.410 shows every 1 variation of the standard deviation in ESG / CSR in the form of Social-Community causes 0.410 variations in organizational performance deviation. Based on Figure 11, it appears that the effect sizes for the path are 12.23%. This means that the influence of ESG /CSR in the form of Social-Community on the performance of the organization is in the moderate category.

In addition, from the table above it appears that ESG/CSR conducted in the form of corporate governance has a p-value of 0.001 or significant at α=0.05 and a positive structural coefficient of 0.39. The results of the analysis showed that in the current condition of COVID 19, good governance conducted by the company can positively influence the performance of the organization, especially judging by the customer; measured through the company's revenue growth and gross profit. While the result of the structural coefficient of positive 0.390 shows every 1 variation of the standard deviation in ESG / CSR in the form of Governance causes 0.390 variations in organizational performance deviation. Based on Figure 11, it appears that the effect sizes for the path are 9.3%. This means that the influence of ESG /CSR in the form of Governance on the performance of the organization is in the moderate category. Changes in work patterns, as well as the application of alternating entry methods for limiting the number of employees in one room, become things that require attention on the governance side of the company, both the granting of access to data, the mechanism of approval, to correspondence methods between employees for decision making and division of work. So that companies that can adapt to these (new) conditions, will be able to maintain and even improve their performance.

The results of this study are in line with the theory previously presented that ESG/CSR can be a driving factor to improve organizational performance. The theory put forward to know the influence was carried out by Fatemi et al. (Fatemi, Fooladi, & Tehranian, 2015); Albuquerque et al. (Albuquerque, Koskinen, & Zhang, 2018) show that the better ESG/CSR performance the company has, can have a positive impact on the company's value. This is obtained because ESG/CSR activities affect the increase in cash flow. After all, consumers tend to buy products/services from companies that have a reputation for concern for the environment and

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the community or the surrounding community, for employees, the reputation also increases the motivation to work so that productivity also increases.

Conclusion

Based on the results of research conducted to measure the influence of ESG / CSR on the performance of organizations, especially in public companies listed as stocks that have high liquidity and large market capitalization and supported by good corporate fundamentals on the Indonesia Stock Exchange. By looking at the conditions before and during COVID, ESG / CSR both in the form of environmental concern, social (social-community &social-employee), and governance (governance) has an impact on the performance of the organization. On 28 respondents listed in the LQ45 index, the average ESG/CSR performance score before COVID stood at 53.6 and when COVID stood at 48.13, the performance seen from ESG/CSR scores decreased by -11.61% from the average ESG/CSR score for the period before COVID (2018- 2019).

In the period before COVID, the industrial sector with the highest score was obtained by the mining sector, followed by the financial sector. While at the individual level, the highest individual score was obtained by Wijaya Karya (Persero), then Vale Indonesia, and Indo Tambang Megah Raya in third place. The research found that before COVID, concern for the environment (environment) positively influenced the performance of the organization, especially judging by market factors; measured through the company's EBIT growth, as well as the financial market; assessed by net profit, market capitalization, and ROI. This shows that the company's concern can improve growth performance because consumers are fonder and looking for products that are environmentally friendly and investors have the awareness and desire to invest in green company stocks so that the market capitalization also increases.

While in the period when COVID occurred, the score based on the highest sector was obtained by the financial sector, which was then followed by the multi-industry sector with and the mining sector in the third position. In this period, it was found that the highest individual score was still held by Wijaya Karya (Persero), which was then followed by Japfa Comfeed Indonesia, and Bank Rakyat Indonesia (Persero). During COVID, the analysis results showed that in the condition of COVID 19, 2 forms of ESG / CSR have the most significant effect on the company's performance, namely concern for the condition of the community and the community can positively influence the performance of the organization, especially judging by market factors; measured through the company's EBIT growth. The company's concern for the community was able to increase/foster awareness in the eyes of consumers and stakeholders (such as suppliers) who were finally able to improve performance amid economic conditions that are under pressure.

The study also found that during COVID, good governance is mainly measured through the company's revenue growth and gross profit. Of course, changes in work patterns that apply WFH (work from home), as well as alternating entry methods for limiting the number of employees in one room become things that require attention on the governance side of the company, both the granting of access to data, approval mechanisms, to correspondence methods between employees for decision making and division of work.

Further research can expand the scope of the relationship between the quality of social assistance, consistency of quantity and amount and volume of aid provided, as well as about the impacts and benefits felt by the community and the limitations that may be faced when delivering social assistance later. The development of the impact or benefits that affect the

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company can also be expanded to enrich as a research variable studied. Such as the impact on the company's expenses, the amount of investment, government regulations, and other indicators that may be used as material for more in-depth research.

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