THE RELATIONSHIP BETWEEN GOVERNANCE ON SUSTAINABILITY AND PERFORMANCE

This study examine the indirectly effect between good corporate governance (GCG) and performance, using sustainability disclosure as mediating variable. Based on the data from rating of IICG (Indonesian Institute for Corporate Governance) 2007-2009, the findings show that sustainability disclosure influence to performance whereas GCG doesn’t influence to sustainability disclosure. The findings also indicate that sustainability disclosure doesn’t have mediation role on the relationship between GCG and performance. This prediction doesn’t consistent that governance is expected can improve corporate sustainability disclosure which is reflected in sustainability report. Through sustainability, it should be implementation of governance will be increasing corporate performance.