Corporate Social Responsibility And Performance Corporate Finance

Taqiyyah Ulinnuha; Dini  Harlini; Rela Sari

doi:10.63922/ijevss.v5i04.6814

Taqiyyah Ulinnuha Master Of Accounting Science Program, Sriwijaya University, Indonesia
Dini Harlini Master of Accounting Science Program, Sriwijaya University, Indonesia
Rela Sari Department Of Accounting, Sriwijaya University, Indonesia

DOI: https://doi.org/10.63922/ijevss.v5i04.6814

Keywords: Corporate Social Responsibility, financial performance, Systematic Literature Review, corporate reputation, stakeholder, Resource-Based View.

Abstract

Corporate Social Responsibility (CSR) is increasingly seen as part of a company's strategy that can bring both social and economic benefits. But research on the link between CSR and a company's financial performance is still mixed, so we need a synthesis to understand the mechanisms and conditions behind that relationship. This study aims to analyze the development of literature on the CSR-financial performance link, identify value-creation mechanisms and contextual factors, and develop an integrated conceptual framework. The study uses a Systematic Literature Review (SLR) method by looking through relevant academic articles and selecting them based on inclusion and exclusion criteria. Data was analyzed through narrative and thematic synthesis. Findings show that the relationship between CSR and financial performance isn't always direct or consistent. CSR can provide financial benefits through corporate reputation, stakeholder reciprocation, risk mitigation, and innovation capacity. These relationships are also influenced by corporate governance, company characteristics, industry, economic conditions, and institutional environment. Integrating Stakeholder Theory, Legitimacy Theory, Signaling Theory, Agency Theory, and the Resource-Based View shows that the strategic value of CSR depends on a company's ability to turn social and environmental activities into resources and capabilities that create value. This study produces a conceptual framework and research propositions that can serve as a basis for empirical testing in future research.

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