STRATEGIC CORPORATE SOCIAL RESPONSIBILITY AND FIRM PERFORMANCE
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Date
2012-01-25
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International Conference on Business, Entrepreneurship and Management 2012, San Beda College
Abstract
Strategic management literature suggested that social responsibilityactivities is an
opportunity, innovations and a source of competitive advantage that can be used to enhance
corporate value. This study discusses the company's ability to alter the activity of CSR into a
valuable strategic CSR activities (strategic CSR) and its impact on corporate performance
(financial and non financial). The research also compared the ability of manufacturing
companies in Indonesia and Malaysia in produce a strategic CSR. Company's ability to
generate strategic CSR in this research were measured using five dimensions of strategy
disclosure of the Centrality, Specificity, Proactively, Visibility and Voluntarism. While the
performance of the company divided into non-financial performance and financial
performance. Financial performance is measured by Return On Assets (ROA) and Price
Earning Ratio (PER). Non-financial performance is measured by Value Creation that
generated fiom The customer loyalty, Obtain new customer, Develop new products/services,
Open new markets, and Improve employee competence. The results show that strategic CSR
that the company provides have a significant impact on financial and non-financial
performance (value creation) as compared to financial performance. While the country
aspects only affecting Return On Assets (ROA).
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Keywords
Strategic Corporate Social Responsibility, Non Financial, Financial, Performance, Value creation, Return On Assets (ROA), Price Earnings Ratio (PER)