South East Asia Journal of Contemporary Business, Economics and Law, Vol. 4, Issue 2 (June) ISSN 2289-1560 2014 30 CSR DISCLOSURE EVIDENCE IN INDONESIA: SHARIA AND NON SHARIA BANK Chrisna Suhendi Faculty of Economics, Sultan Agung Islam University of Semarang, Indonesia 50112 E-mail: chrisnasuhendi@unissula.ac.id Maya Indriastuti Faculty of Economics, Sultan Agung Islam University of Semarang, Indonesia 50112 E-mail: maya@unissula.ac.id ABSTRACT This study is aimed to analyze and empirically test the Corporate Social Responsibility Disclosure (CSRD) between Sharia and non Sharia Banks. CSRD data is collected from the company related to social activities that include the following themes: environment, energy, health and occupational safety, other labor, products, community involvement, and general information. All items of CSRD were measured using content analysis with the check list of the items of CSRD in the annual report of each Sharia Bank (Mandiri Sharia Bank, BNI Sharia, and BRI Sharia) and Non Sharia Bank (Mandiri Bank, BNI, BRI). Mann- Whitney test was aplied to compare the CSRD of the two different type of banks. The results showed that, in general, there is no difference between the two type of banks. However, non sharia banks tend to disclose more enviromental, energy and general information than sharia banks. This might have been due to the fact that Banks in Indonesia adopt the dual banking system that allow the non-sharia banks have Sharia Business Units/sharia banking units. It is mean that all activities of the sharia banking still depends on the policy of the corresponding conventional banking. While, Sharia Banks tend to disclose more information related to non-riba, gharar, zakat, saddaqa, waqf, and qard Hasan activities. In order to the form of social activities Sharia bank, for example: distribution to a number of corporate zakat, provision of social assistance to the community/population/people who are less able, aid to education, aid to disaster victims, and the last ono is providing medical assistance. Keywords: Corporate Social Responsibility Disclosure (CSRD), annual report, Sharia Banks, Non Sharia Banks, Mann-Whitney test INTRODUCTION. Corporate Social Responsibility Disclosure (CSRD) is a mandatory information which must be disclosed in the annual report of company or presented separately in the sustainability report (Sulaiman and Willet, 2003). The importance of CSRD is associated with improved financial performance, enhanced brand image and increased attractiveness of the company as the best workplace, which ultimately will affect the market value of the company (Wahjuni et al, 2012). Based on the standard of the World Bank, there are several major components in CSR which include: (1) environmental protection, (2) job security, (3) Human Rights, (4) interaction and company involvement with community, (5) business standards, (6) market, (7) development of economic and business entities, (8) health care, (9) leadership and education, and (10) humanitarian disaster relief efforts. For a company, CRSD can be seen as a positive thing because it can build positive image of the company, so the ten components must be pursued to fulfill. Many countries are supporting this CSRD, for example, the Malaysian government provides financial incentives for public-listed companies (PLCs) that report their social responsibility (Wahjuni et al, 2012 and Dusuki et al., 2005). In Australia, the issue of human rights and globalization are two reasons why companies undertake social responsibility reporting (Ahzar and Trisnawati, 2013). Meanwhile, the European countries treat CSRD as a priority informasi in order to achieve one of its strategic objectives, which are listed in the Lisbon Strategy the spring of 2000, ie become knowledge-based economy the most competitive and dynamic in the world, can maintain sustainable economic growth, can provide more jobs and more feasible, and maintain better social cohesion (Cosmin and Eugenia, 2009 in Ahzar and Trisnawati, 2013). Similarly, in Italy, CSRD is used as a strategic management for banks which multi-stakeholder orientation and to create a value for related parties and company transactions carefully (Zappi, 2007 in Ahzar and Trisnawati, 2013). In addition, Nigeria needs CSRD because of changing in consumer behavior as a result of globalization and the deregulation of financial services, privatization by national banks predecessor, development of information technology, and other (Achua 2008 in Ahzar and Trisnawati, 2013). In contrast, according to Fitria and Hartanti (2010), in Indonesia, banking CSRD purpose is just to meet the information needs of financial statements users regarding the extent to which the company has been carrying out social activities so that the right of people to live safely and peacefully, employee welfare, and safety of foods can be met. Banking companies implement CSRD because of the accountability paradigm shift, from management to shareholders into management to all stakeholders and maintain the company's image in the eyes of society (Anto and Astuti 2008, and Irfan, 2009). Surveys conducted by the Bahrain Monetary Agency in 2004 showed that the number of Sharia banking institutions increased significantly, from 176 in 1997 to 267 in 2004 operating in 60 countries in the world with a growth rate of 15% per year (Zaher and Hassan, 2001 in Fitria and Hartanti, 2010). In addition, in Indonesia, Sharia banking recorded significant growth, with a growth rate of 2.2% (Bank Indonesia, 2008). In 2010, the assets of sharia banking have reached 79 billions rupiah. This figure