Corporate Social Responsibility in the Age of Sustainability: A Global Perspective on Management Practices

Reni Reni; Mochamad Rizki Sampoerno; Fauzie Pari; Rizki Chrisulianti

Authors

Reni Politkenik PGRI Banten, Indonesia
Mochamad Rizki Sampoerno Politkenik PGRI Banten, Indonesia
Fauzie Pari Sekolah Bisnis IPB, Indonesia
Rizki Chrisulianti Universitas Sains Indonesia, Indonesia

Keywords:

Corporate Social Responsibility, sustainability, economic CSR, business ethics, ESG, strategic management

Abstract

This study aims to analyze the influence of Corporate Social Responsibility (CSR) on sustainability practices in Indonesian companies. Employing a quantitative approach with multiple linear regression methods, the research involves data from 100 respondents across various industrial sectors, all holding strategic roles in their companies' CSR management. The independent variables consist of four CSR dimensions: economic, legal, ethical, and philanthropic, while the dependent variable is sustainability practices, which encompass environmental, social, and governance aspects. The results show that all CSR dimensions simultaneously have a significant impact on sustainability practices, with a coefficient of determination (R²) of 0.681 and a significance value of 0.000. The economic dimension emerges as the most dominant factor, having the highest regression coefficient. Meanwhile, the ethical and philanthropic dimensions, although less dominant, remain significant and play important roles in building social legitimacy and corporate reputation. This study also emphasizes the importance of integrating CSR into long-term business strategies, as well as the need for digitalizing sustainability reporting and establishing dedicated sustainability management units. The findings contribute theoretically to the development of a strategic CSR model and offer practical implications for corporate management in addressing global sustainability demands.

References

Azis, M., & Rachmawati, R. (2021). Ethical corporate behavior and youth consumer trust in Indonesia. Journal of Business and Moral Responsibility, 6(2), 89–101.

Bansal, P., & DesJardine, M. R. (2019). Managing the long-run in a short-run world: Corporate social responsibility and sustainability. Academy of Management Perspectives, 33(1), 89–105. https://doi.org/10.5465/amp.2017.0121

Carroll, A. B. (2018). A Three-Domain Approach to Corporate Social Performance. Academy of Management Review, 43(1), 1–12. https://doi.org/10.5465/amr.2017.0134

Carroll, A. B., & Brown, J. A. (2018). Corporate social responsibility: A review of current concepts, research, and issues. Business & Society, 57(1), 6–45. https://doi.org/10.1177/0007650316660046

Eccles, R. G., & Krzus, M. P. (2018). The Nordic Model: An Analysis of Leading Practices in ESG Disclosure. Nordic Journal of Business, 67(2), 56–72.

Edelman. (2022). Trust Barometer Global Report 2022. Edelman Insights.

Fadhillah, R., Marpaung, M. S., & Putri, S. (2022). CSR implementation and sustainability reports: Evidence from Indonesia. Jurnal Akuntansi Multiparadigma, 13(3), 524–536. https://doi.org/10.18202/jamp.v13i3.10025

Global Reporting Initiative. (2020). Consolidated GRI Standards 2020. https://www.globalreporting.org

Hanum, R., Zulkarnaen, A., & Prasetya, D. (2023). Economic-based CSR and its effect on firm sustainability in Indonesia. Jurnal Ekonomi dan Bisnis Berkelanjutan, 10(1), 35–48. https://doi.org/10.32507/jebb.v10i1.250

Hidayat, R., Yusuf, A., & Siregar, A. (2020). Corporate reporting and sustainability performance in Indonesia. Journal of Financial and Strategic Research, 9(2), 42–57.

Indrawan, M., Prabowo, A., & Nugroho, S. (2019). ISO 26000 implementation in Indonesian companies: A case study approach. Indonesian Journal of Business Ethics, 4(1), 22–31.

Kumar, V., Rahman, Z., & Kazmi, A. A. (2020). Sustainability practices and corporate performance: A review and research agenda. Journal of Strategy and Management, 13(3), 365–389. https://doi.org/10.1108/JSMA-11-2019-0212

Lestari, P., & Hermanto, B. (2020). Leadership styles and CSR integration in Indonesian firms. Jurnal Manajemen, 24(2), 145–159.

Nasution, M. D., Siregar, H., & Hidayati, N. (2021). Green consumer behavior and CSR reputation. Jurnal Ilmu Sosial dan Humaniora, 10(1), 67–78.

Porter, M. E., & Kramer, M. R. (2019). Creating shared value: Redefining capitalism and the role of the corporation in society. Harvard Business Review, 87(1), 62–77.

Putri, L. M., & Darmawan, H. (2020). Strategi integrasi CSR dalam struktur organisasi bisnis Indonesia. Jurnal Manajemen dan Inovasi, 9(1), 73–86.

Rachman, F., & Iskandar, D. (2023). Community trust and philanthropic CSR: A study in local engagement practices. Jurnal Ekonomi dan Sosial, 11(1), 55–66.

Rahardjo, A., & Prasetyo, M. (2022). CSR strategy and firm competitiveness: A sustainability perspective. Jurnal Ilmu Ekonomi dan Bisnis, 18(1), 21–32.

Santosa, B., & Wulandari, F. (2020). Analisis Dimensi Ekonomi CSR terhadap Indeks Keberlanjutan Perusahaan. Jurnal CSR dan Inovasi Sosial, 6(2), 112–123.

Saragih, H. S., & Yuliana, R. (2022). Millennial workforce preferences and sustainability: Implications for CSR practices. Journal of Organizational Studies, 17(1), 45–59.

Sembiring, R., & Anggraeni, D. (2021). Digital transformation in sustainability reporting: Evidence from Indonesian listed companies. Jurnal Teknologi dan Bisnis Digital, 5(2), 140–152.

Setiawan, D., & Darma, D. C. (2021). CSR practices in Indonesia: Between regulation and voluntary action. Jurnal Administrasi Bisnis, 45(3), 112–126.

Setyowati, R., Rahmawati, Y., & Akbar, T. (2021). CSR implementation and sustainable development goals in Indonesian energy sector. Jurnal Manajemen dan Organisasi, 12(3), 221–233.

Sihombing, T., & Rahmawati, E. (2023). ESG integration and investor response in Southeast Asian markets. Journal of Corporate Finance Studies, 5(1), 58–70.

Sitorus, L. A., & Hartati, E. (2023). Aligning CSR with SDGs: A roadmap for Indonesian companies. Sustainable Business Journal, 3(2), 110–125.

Sugiyono. (2019). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Bandung: Alfabeta.

Tampubolon, F., & Dewi, L. (2020). Ethical leadership and employee retention: Mediating role of social CSR. Indonesian Journal of Organizational Psychology, 7(3), 211–225.

UNDP. (2020). Sustainable Development Goals: Indonesia’s Voluntary National Review 2020. United Nations Development Programme.

Wahyuni, N., & Riani, A. L. (2022). CSR disclosure and its impact on firm performance: An Indonesian context. Jurnal Akuntansi dan Keuangan Indonesia, 19(2), 187–202.

Wibowo, A. (2022). Repositioning CSR from philanthropy to strategy: Implication for business leaders. Journal of Corporate Transformation, 4(1), 15–29.

Wibowo, A., & Hartini, S. (2023). Digital transformation and corporate sustainability reporting in Indonesia. Jurnal Sistem Informasi dan Bisnis, 11(2), 101–117.

Wijaya, M., & Prasetyo, H. (2022). Corporate social responsibility and its impact on firm sustainability: Evidence from Indonesian manufacturing firms. Journal of Business Sustainability, 8(2), 135–149.

Yunita, I., & Amalia, F. (2023). Local wisdom and CSR integration in Indonesia: From compliance to commitment. Indonesian Journal of Corporate Governance, 8(1), 33–49.