ASSESSING THE IMPACT OF PROFITABILITY AND SUSTAINABILITY PERFORMANCE ON THE FIRM VALUE (Empirical Study on Mining Companies listed in Indonesian Stock Exchange for period 2010 - 2012)

Global Reporting Initiative (GRI) emerged in this context as it aims to provide the company a comprehensive sustainability reporting framework, where they can score the level of social responsibility regarding to six different organizational areas: Economic, Environment, Human Rights, Labor Practices & Decent Work, Product Responsibility and Society. The Global Reporting Initiative (GRI) is a multi-stakeholder process and independent institution whose mission is to develop and disseminate globally applicable sustainability reporting guidelines. These guidelines are voluntary use by organizations for reporting on the economic, social and environmental dimensions of their activities (Global Reporting Initiative, 2002; O’Dwyer et al., 2005). There are 703 companies from all over the world in the GRI database, meaning that they publish reports in accordance with GRI guidelines, then GRI guidelines can be argued to be a kind of a worldwide standard for sustainability reporting (Fenchel, 2003). 19 Several research have been conducted related to this issue, Rimba Kusumadilaga (2010) found that Corporate Social Responsibility (CSR) have positive impact on firm value, this research was following the GRI framework but its only focus on the environmental aspect. Recently Silvia Agustina (2013) found CSR have positive impact on firm value by using CSRI Index. Contrarily Nurlela and Islahuddin (2008) were ealier found that social responsibility is not a factor that influence the firm value. While Adistyaningrum (2012) found significant relationship between profitability and firm value