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The Effect of Slack Resources on Strategic Corporate Social Responsibility (CSR): Empirical Evidence on Indonesian Listed Companies

Author

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  • Yosefa Sayekti

    (University of Jember, Indonesia. Author-2-Name: Author-2-Workplace-Name: Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective � This study examines the effect of companies' slack resources on strategic Corporate Social Responsibility ('CSR') and also non-strategic CSR. By analysing the slack resources as a determinant of CSR, it might indicate the companies' priority regarding their strategic CSR as part of companies' strategy. Methodology/Technique � Instead of using profitability as a measure of slack resources, this study employs slack resources as a variable itself as it was developed by Burgeois (1981), based on financial data in the companies' financial statements. Findings � The empirical result of this study indicates that un-absorbed slack resources positively affect the strategic CSR and also non-strategic CSR of a company, while absorbed slack resources do not significantly affect either. Novelty � Unlike previous studies, this study does not use profitability as a proxy of slack resources, but uses slack resources as a variable itself."

Suggested Citation

  • Yosefa Sayekti, 2017. "The Effect of Slack Resources on Strategic Corporate Social Responsibility (CSR): Empirical Evidence on Indonesian Listed Companies," GATR Journals gjbssr472, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:gjbssr472
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    References listed on IDEAS

    as
    1. Haniffa, R.M. & Cooke, T.E., 2005. "The impact of culture and governance on corporate social reporting," Journal of Accounting and Public Policy, Elsevier, vol. 24(5), pages 391-430.
    2. Steven W. Bradley & Dean A. Shepherd & Johan Wiklund, 2011. "The Importance of Slack for New Organizations Facing ‘Tough’ Environments," Journal of Management Studies, Wiley Blackwell, vol. 48, pages 1071-1097, July.
    3. Justin Tan & Mike W. Peng, 2003. "Organizational slack and firm performance during economic transitions: two studies from an emerging economy," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1249-1263, December.
    4. David P. Baron, 2001. "Private Politics, Corporate Social Responsibility, and Integrated Strategy," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 10(1), pages 7-45, March.
    5. Juniati Gunawan, 2007. "Corporate Social Disclosures by Indonesian Listed Companies: A Pilot Study," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 3(3), pages 26-34, August.
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    Cited by:

    1. Md. Nurun Nabi & Mst. Marium Akter & Ahashan Habib & Abdullah Al Masud & Subrata Kumer Pal, 2021. "Influence of CSR stakeholders on the textile firms performances:The mediating role of organizational legitimacy," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 10(8), pages 25-38, December.

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    More about this item

    Keywords

    Slack Resources; Corporate Social Responsibility; Strategic CSR; Nonstrategic CSR; Slack Resources; Absorbed Slack Resources; Unabsorbed Slack Resources.;
    All these keywords.

    JEL classification:

    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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