The Impact of Corporate Social Responsibility on Financial Performance Mediated by Corporate Strategy, Corporate Reputation, Stakeholder Engagement & Political Connection

Abstract

The bottom line and the company's value to its shareholders are always top priorities for every business. However, most companies realize how crucial it is to their survival, and as a result, they follow the principles of sustainable development to plan for the future. By having a strategic approach to corporate social responsibility (CSR), businesses may boost their bottom line while strengthening their relationships with the government. Components of CSR allow a company to establish norms for how it will conduct business and how it will relate to the communities in which it operates. This study used quantitative research methods (Content Analysis) it includes firms that are traded on the Indonesian Stock Exchange (IDX). This is because they are reaping the monetary rewards of CSR. Researchers looked at how CSR's most notable features affected companies' bottom lines. The company's financial success level served as this study's dependent variable. In contrast, the company's reputation, corporate strategy, stakeholder concerns, and political ties were independent factors.