Volume 5, Issue 8, August – 2020 International Journal of Innovative Science and Research Technology ISSN No:-2456-2165 IJISRT20AUG440 www.ijisrt.com 555 Effect of Bank Performance on Good Corporate Governance Implications on Corporate Social Responsibility (Case Study on Banking Sub-Sector in IDX Period 2018) Dayu Purba 1 , Said Djamaluddin 2 1 Master of Management, Mercubuana University, Jakarta, Indonesia 2 Lecturer of Postgraduate, Mercubuana University, Jakarta, Indonesia Abstract:- The purpose of this study is to examine and analyze the effect of bank performance on good corporate governance implications of corporate social responsibility (study case in banking sub sector BEI periode 2018). Sampling method in this reseach was using purposing sampling. Research population as a many as 45 banking industries ( as of 1 april 2019) listing 2 october 2019. Analyze methode in this reasearch was using structrual eqution modeling with WarpPLS software. And the result of this research is showing that variable of capital adequation ratio (CAR), non performing loan (NPL), Net interest margin (NIM) significant positive effect on good corporate governance (GCG). meanwhile, capital adequacy ratio (CAR) has significant positive on corporate social responsibility and non performing loan (NPL), Net Interest Margin (NIM) doesn't emphaze on corporate social responsibility. Good corperate governance is most influential variable on Corporate Social Responsibility. Keywords:- Capital Adequasi Ratio (CAR), Non Performing Loan (NPL), Net Interest Margin (NIM), Good Corporate Governance (GCG), Corporate Social Responsibility (CSR). I. INTRODUCTION A company to know the types of risks that occur in the Bank's activities starts from the identification of risks, followed by a measurement of risk to know the risks involved. Then, the bank performs a quality control assessment against the existing risks. If deemed necessary, the bank has improved the control quality in the form of risk mitigation process. Furthermore, banks conduct monitoring and reporting on risk control efforts. The purpose of the risk identification is to identify the entire type of risk inherent in any functional activity that is potentially detrimental to the bank. (IBI, 2017) Sustainability report is a thorough support of the financial services industry for growth resulting from the alignment of economic, social, and environmental interests. Sustainable development as a new paradigm in pursuing economic growth has now attracted the attention and commitment of many institutions in the world. The company's guidelines for publishing a stand-alone sustainability report refer to the further Global Reporting Initiative guidelines abbreviated to GRI. According to Ambadar (2008), the implementation of Corporate Social Responsibility (CSR) must be in a corridor of good corporate strategy to achieve the basic objectives of the company's business. CSR concept arises due to publicdisbelief in the company. Strategy is the ability to see the direction you want to go, and to do the things you need to stay on track and achieve your intended objectives. It is used to maintain a long-term commitment to achieving a global leadership position on the competition which is an advanced follow-up of a defined vision (Watson, 1993). In Figure 1 Here is the chart of Corporate Social Responsibility year 2018. Fig 1:- Corporate Social Responsibility 2018 Source: Data Processed (2020) Implementation of GCG (Good Corporate Governance) especially in the management of companies is as one of the important efforts to produce a trusted company and able to make the company become the Sustainability company. The purpose of this regulation is to improve the financial and operational performance of issuers and public companies. The implementation of GCG on banking should always be based on five basic principles of transparency (transparency), accountability (accountability), responsibility, Independence (independency) and fairness (fairness). The implementation of GCG for every banking in Indonesia in 2018 can be seen in Figure 2. If we see from the graph it can be said that the