Main Content
Lembaga Kita Journal Portal
Open Access Articles

The Impact and Effect of Corporate Social Responsibility on Corporate Financial Performance

  • Natasha Anjanette Pranata1*
  • Yolanda Maghdalena Sihaloho 2
  • Hwihanus3
1,2,3 Universitas 17 Agustus 1945 Surabaya image/svg+xml
* Corresponding Author: Natasha Anjanette Pranata

Abstract

CSR, short for Corporate Social Responsibility, is a concept in which companies consider the social and environmental impact of their business activities. The main principle of CSR is that companies have a responsibility to contribute positively to the society and environment around them. This includes various initiatives such as philanthropy, sustainability programs, and engagement in social issues. By implementing CSR, companies can strengthen relationships with stakeholders, enhance brand image, and create long-term positive impacts. One of the key benefits of CSR is its ability to enhance a company's reputation. By committing to responsible business practices, companies can build trust with consumers, investors, and the wider community. This can lead to long-term benefits by fostering customer loyalty, attracting investments, and reducing reputation risks. Additionally, CSR can help companies comply with increasingly stringent regulations related to environmental and social issues. The implementation of CSR can also provide internal benefits to companies. By encouraging employees to engage in social and environmental activities, companies can enhance employee satisfaction and engagement. This can have a positive impact on productivity, employee retention, and the company's image as a good place to work. Furthermore, through CSR programs, companies can expand their business networks, create collaboration opportunities, and broaden their positive impact. Despite the various benefits of implementing CSR, challenges may arise in its implementation. Companies need to manage resources wisely, measure the impact of CSR initiatives, and ensure consistency with the company's values and goals. Additionally, companies need to be transparent in reporting their CSR activities to build trust with stakeholders. By addressing these challenges, companies can optimize the benefits of CSR and create a sustainable positive impact on society and the environment.

Keywords

CSR Corporate Social Responsibility Social Impact Environment Sustainability Company Reputation Employee Engagement Internal Benefits Challenges Transparency In Reporting

How to Cite

Citation Format
Pranata, N. A., Sihaloho , Y. M., & Hwihanus. (2024). The Impact and Effect of Corporate Social Responsibility on Corporate Financial Performance . LANCAH: Jurnal Inovasi Dan Tren, 2(2), 301~307. https://doi.org/10.35870/ljit.v2i2.2718

References

5 References
  • Adamkaite, J., Streimikiene, D., & Rudzioniene, K. (2023). The impact of social responsibility on corporate financial performance in the energy sector: Evidence from Lithuania. Corporate Social Responsibility and Environmental Management, 30(1), 91–104. https://doi.org/10.1002/csr.2340
  • An, R., & Ahmad, A. (2023). Examining the Effect of CSR on Financial Performance in China: Agency Cost as Mediator. International Journal of Professional Business Review, 8(6), e01399. https://doi.org/10.26668/businessreview/2023.v8i6.1399
  • Hamad, H. A., & Cek, K. (2023). The Moderating Effects of Corporate Social Responsibility on Corporate Financial Performance: Evidence from OECD Countries. Sustainability (Switzerland), 15(11). https://doi.org/10.3390/su15118901
  • Ibrahim, K. F. A., & Sylvester Onyekachi, A. (2021). Effect of Corporate Social Responsibility on Investment Efficiency of Quoted Oil and Gas Firms in Nigeria. International Journal of Research -GRANTHAALAYAH, 9(11), 25–38. https://doi.org/10.29121/granthaalayah.v9.i11.2021.4258
  • Li, J., Fu, T., Han, S., & Liang, R. (2023). Exploring the Impact of Corporate Social Responsibility on Financial Performance: The Moderating Role of Media Attention. Sustainability (Switzerland), 15(6). https://doi.org/10.3390/su15065023

Author Biographies

Natasha Anjanette Pranata, Universitas 17 Agustus 1945 Surabaya

Fakultas Ekonomi dan Bisnis Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia

Yolanda Maghdalena Sihaloho , Universitas 17 Agustus 1945 Surabaya

Fakultas Ekonomi dan Bisnis Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia

Hwihanus, Universitas 17 Agustus 1945 Surabaya

Fakultas Ekonomi dan Bisnis Universitas 17 Agustus 1945 Surabaya, Surabaya, Indonesia

License

Copyright (c) 2024 Natasha Anjanette Pranata, Yolanda Maghdalena Sihaloho , Hwihanus

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

This is an open-access journal distributed under the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, reproduction, and adaptation in any medium (even commercially), provided appropriate credit is given to the original author(s), a link to the license is provided, and any changes made are indicated. Authors retain copyright without restrictions and grant the journal the right of first publication as well as non-exclusive publishing rights for archiving, indexing, and scholarly dissemination.

Downloads

OJS UsageStats Plugin
Download data is not yet available.

Similar Articles

You may also start an advanced similarity search for this article.

Most read articles by the same author(s)

Contrimetric

Recommended Articles