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The Role of Firm Strategy to Intervene the Influence of Corporate Social Performance on Corporate Financial Performance

Author

Listed:
  • Bayu Aprillianto

    (University of Jember, Indonesia Author-2-Name: Yosefa Sayekti Author-2-Workplace-Name: University of Jember, Indonesia)

Abstract

"Objective � A Corporate Social Responsibility (CSR) implementation has been implemented since over 50 years ago. All of the CSR implementation divided into two categories, namely Strategic CSR and Non-Strategic CSR. A Strategic CSR implementation should consider the firm strategy based on the CSR concept and firm strategy. Some empirical studies have tested the influence of CSR on Corporate Financial Performance. The results of those studies are still inconclusive. Methodology/Technique � The purpose of this study is to analyze firm strategy as intervening variable between Corporate Social Performance and Corporate Financial Performance. This study used capital intensity and product differentiation to measure the firm strategy. The samples were 33 companies of LQ-45, listed in Indonesian Stock Exchange. Findings � The results did not indicate that firm strategy intervenes the influence of Corporate Social Performance on Corporate Financial Performance, both directly and indirectly. Novelty � The research suggests future studies to employ the other ratios representing Firm Strategy that will strengthen the literature."

Suggested Citation

  • Bayu Aprillianto, 2017. "The Role of Firm Strategy to Intervene the Influence of Corporate Social Performance on Corporate Financial Performance," GATR Journals jfbr131, Global Academy of Training and Research (GATR) Enterprise.
    • Handle: RePEc:gtr:gatrjs:jfbr131
    as

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    References listed on IDEAS

    as
    1. Isabelle Maignan & David A Ralston, 2002. "Corporate Social Responsibility in Europe and the U.S.: Insights from Businesses' Self-presentations," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(3), pages 497-514, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corporate Financial Performance; Corporate Social Performance; Firm Strategy; Non-Strategic CSR; Strategic CSR.;
    All these keywords.

    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • 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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