Influence of Financial Performance and Environmental Performance on Company Reputation

Abstract

The purpose of this research is to analyze the reciprocal influence between
financial performance and environmental performance on corporate reputation. The
population used consists of non-financial companies listed on the Indonesia Stock
Exchange (BEI) from 2019 to 2022. The sample size is 28 companies each year, selected
using purposive sampling. This study utilizes documentary data, including annual reports,
the Corporate Image Index (CII) published by Frontier Consulting Group, and the PROPER
index published by the Ministry of Environment and Forestry.The results of this research,
using simple linear regression analysis, indicate that financial performance has a positive
and significant effect on corporate reputation. Corporate reputation has a positive and
significant effect on financial performance. Environmental performance has a negative and
non-significant effect on corporate reputation, while corporate reputation has a negative
and significant effect on environmental performance. Environmental performance has a
negative and significant effect on financial performance, and financial performance has a
negative and significant effect on environmental performance.The implications of this
research, especially for companies, are that it can serve as a basis for strategic decisionmaking. On the other hand, performance is a key aspect in developing reputation for the
future.