Universitas Indonesia Conferences, International Accounting Conference - 2017

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THE EFFECT OF STRATEGIC CSR ON COMPANY PERFORMANCE (CASE STUDY: MANUFACTURING COMPANIES IN INDONESIA)
Titi Suhartati, Chaerul D. Djakman, Elvia R. Shauki

Last modified: 2017-08-10

Abstract


This study aims to explore the effect of the implementation of strategic corporate social responsibility on firm performance. The samples of the study are the manufacturing companies listed on the Indonesian Stock Exchange (BEI) in the period 2013-2014. Secondary data such as financial statements and annual reports are used to obtain research data. This study uses content analysis to obtain information regarding CSR strategic indicators in the annual report. Strategic CSR element used in this study consisted of proactivity and visibility. The results showed that strategic CSR has a significant influence on the company’s financial performance. These findings indicate that the company has been carrying out activities in line with the CSR Strategic objectives of the company and will increase the company's performance. Strategic CSR is one of the fulfillment on the obligations of the companies to the government and society, not just the embodiment of moral or ethical obligation of companies to the social environment and society but have impact to the company's performance.


Keywords


strategic, corporate social responsibility, performance

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