Influence of CSR on Financial Performance with Non-Financial Aspects as Moderator

Yeni Yeni, Sutarti Sutarti, Bambang Pamungkas

Abstract


This research examined the influence of Corporate Social Responsibility (CSR) on financial performance, moderated by non-financial aspects such as institutional pressure, environmental pressure, and governance. A sample of 32 manufacturing and mining companies listed on the Indonesia Stock Exchange (IDX) from 2015-2022, with 256 observations, was analyzed using the Generalized Least Square (GLS) method. The findings revealed that CSR positively impacts financial performance, aligning with legitimacy and stakeholder theories. Institutional pressure strengthened the positive relationship between CSR and financial performance. Conversely, environmental and governance pressures, particularly diversity in educational backgrounds, weakened this relationship. These results highlight the importance of CSR in enhancing financial outcomes and underline the moderating role of external pressures. The study suggests stricter CSR regulations in developing countries to ensure effective social responsibility practices, providing valuable insights for policymakers and organizations in balancing financial goals with social accountability.

Keywords


CSR, Environmental Pressure, Financial Performance, Governance, Institutional Pressure, Non-financial aspects

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References


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DOI: https://doi.org/10.17509/jrak.v12i3.75076

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