Influence of corporate social responsibility on company performance

Abstract

The paper aims to determine the Corporate Social Responsibility (CSR) effect on company performance. Condition of companies in Indonesia nowadays that implementing CSR, contributes business to sustainable development, and corporate behaviour must not only ensure returns to shareholders, wages to employees, and products and services to consumers but also respond to social and environmental concerns and values. CSR based on the life philosophy of Indonesian people, namely mutual cooperation. With this system, the company does not implement it by itself, but with the support of all parties. Given the philosophy of life in Indonesia, the implementation of CSR is an excellent program and helps the company, especially its relationship with the communities around the company. The data was collected using a questionnaire and analysed using simple linear regression. The results of this study indicate that the value of Y = 5.833 + 0.686 x shows that if there is a change in the dimensions of social responsibility of 0.05, it will cause a difference in corporate performance of 68.6%. The significant t point (sig = 0.00 <a = 0.05) indicates influences of CSR for the company performance on simple regression analysis. The R-value of the correlation coefficient of 0.809 means that the correlation between the independent variables of Corporate Social Accountability (X) and Performance (Y) is positive. It shows that the better the implementation of CSR by the company, the better the performance of the company.

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