SUSTAINABLE SUCCESS: THE CRUCIAL ROLE OF SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN BUSINESS PERFORMANCE

Authors

  • Grace Wayan Faculty of Economics and Business, Udayana University, Bali, Indonesia, 80113

Keywords:

Corporate social responsibility, market performance, life cycle, cost allocation, industrial energy sector, Indonesia

Abstract

The increasing population in Indonesia leads to a rise in energy consumption, which has a severe
impact on the environment. To fulfill their social responsibility, companies in the industrial sector need to
allocate a part of their profit to Corporate Social Responsibility (CSR) activities. This study aims to examine
the moderating effect of the company's life cycle on the relationship between CSR cost allocation and market
performance. A quantitative research method was adopted, and the data was collected from 90 companies in
the industrial energy sector listed on the Indonesia Stock Exchange for the period 2017-2021. The moderated
regression analysis was employed to analyze the data using E Views software. The findings indicate a positive
impact of CSR cost allocation on market performance, whereas the company's life cycle did not affect this
relationship. This research adds to the literature on the effect of CSR cost allocation on market performance
and provides insights and information for companies and investors. Companies can enhance their market
performance by paying attention to the allocation of CSR costs, and investors can use this information to make
informed investment decisions. Companies that allocate funds to CSR activities can improve their market
performance

Published

2022-08-11

How to Cite

Wayan, G. (2022). SUSTAINABLE SUCCESS: THE CRUCIAL ROLE OF SOCIAL AND ENVIRONMENTAL RESPONSIBILITY IN BUSINESS PERFORMANCE. American Interdisciplinary Journal of Business and Economics (AIJBE), 9(3), 26–31. Retrieved from https://sadijournals.org/index.php/AIJBE/article/view/58

Issue

Section

Original Peer Reviewed Articles