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B. Result and Finding
1. Coefficient determination R
2
Table 4.1 Coefficient determination R
2
Model Summary
Model R
R Square
Std. Error of the Estimate
1 ,957a
,916 1,13644
a Predictors: Constant, is_val From the result shown in the table 4.2 the number of correlation
R between Islamic value and social reporting is 0.957. It indicates that the relation between Islamic value and social reporting is very strong. The
number of R square is 0,916; it indicates that 0,916 or 91, 6 social reporting is influenced by Islamic value. The remaining 8, 4 is influenced
by other factor. The other factor is might be the implementation of corporate
governance. Corporate Governance Council 2004 recommends that one way in order to demonstrate good corporate governance is to use annual
report to disclose information to all legitimate stakeholders. According to Gibson and O’Donovan 2007: 944 corporate governance is now closely
linked to corporate social responsibility. Haniffa and Cooke 2002: 341 research indicate associations at 5 level between corporate governance
and the extent of voluntary disclosure. In that research, Haniffa and Cooke divide corporate governance in two variables: non-executive board direction
and domination of family members on boards. Farook and Lanis 2007: 24
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argue that corporate governance mechanism increases the level of CSR disclosure. Thus, the Corporate Governance indeed influences the form of
social reporting provided by the company. However this factor is excluding and not deeply discuss in this research.
2. T-Test
Table 4.2 Coefficientsa
Model Unstandardized
Coefficients Standardized
Coefficients t
Sig. B
Std. Error
Beta B
Std. Error
1 Constant
,105 1,334
,079 ,939
is_val 1,538
,165 ,957 9,336
,000 a Dependent Variable: soc_rep
According table 4.2, Value of B constant is 0,105 indicates if the Islamic value is ignored, so the social reporting is 0,105. The value of B
is_val 1,538 explains that every addition in Islamic value will increase the value of social reporting as 1,538.
Based on the value of B constant and B of Islamic value, so it can be made an equation of linear regression:
Y = a + bX = 0,105 + 1,538x Based on the table 4.4, it indicates the number of significant for
variable X Islamic Value amount 0,000. The number 0,000 0, 05. Therefore H
rejected and H
a
accepted. With standard error 5 and degree
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of freedom df = n – total of independent variable = 10 – 2 = 8, the result from T table = 1.860. The number of T test is 9,336 T table 1.860.
Therefore, it explained that coefficients regression is significant or as conclusion variable Islamic value X influenced social reporting Y.
It is worth mentioning that Islamic bank Syariah Mandiri bank and Muamalat Bank done their social activities according to Shari’ah principle.
Therefore it is concluded that disclosure relating to justice, the environment, morality and ethic has been made by Islamic Bank in its annual report. This
is supported by Maali et all 2006:283 in the previous research which finding that fully Islamized bank provide a substantial amount of social
information. Most of fully Islamized bank coming closest to meeting Maali et al benchmark, it means that bank disclose a substantial amount of social
information measured by number of sentences tend to achieve this by providing extensive disclosure in a small number of categories rather than
less detailed disclosure across a wider range of categories. From the result it can be known that 91, 6 variance of social reporting
is influenced by Islamic value. So it is concluded that the Islamic value such as Tawhid, Khilafah, Al Adl, Halal, Haram, Ummah and Maslahah form the
social reporting. As Haniffa 2002: 139 argues the concept of Tawhid, Amanah, Ummah, and Al Adl
stress on the importance of sharing a common goal and removal of hardship in society and this could be achieved via
Saddaqa charities, Waqf trusts, and Qard Hassan lending with no
profit. Its explain that the Islamic Social Reporting must be different from
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Conventional Social Reporting because the information items that need to be emphasized are different. Beside that, Haniffa suggests the use of
Shari’ah framework in developing Islamic Social Reporting to fulfil both accountability and transparency objectives as it addresses relationships
between man and God, man and man and also man and nature.
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CHAPTER V CONCLUSION AND IMPLICATION
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