Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)

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A Theoretical Framework for the Mediation Analysis on the Relationship Between Corporate Social Responsibility and Financial Performance

Authors
Esti Dwi Rinawiyanti1, *
1Study Program of Industrial Engineering, Faculty of Engineering, University of Surabaya, Surabaya, Indonesia
*Corresponding author. Email: estidwi@staff.ubaya.ac.id
Corresponding Author
Esti Dwi Rinawiyanti
Available Online 12 December 2022.
DOI
10.2991/978-94-6463-076-3_55How to use a DOI?
Keywords
CSR Practices; Mediating Effect; Operational Performance; Stakeholder
Abstract

Several studies have investigated the impact of corporate social responsibility (CSR) on financial performance (FP). However, little research has been done on how CSR affects non-financial performance and how this performance mediates the CSR-FP relationship. This study aims to develop a theoretical framework for the relationship between CSR and company performance, as well as to analyze a mediating effect on the CSR-FP relationship. Stakeholder theory is employed to emphasize the importance of incorporating the interests of key internal and external stakeholders, including employees and customers, into CSR practices. The theoretical framework describes CSR in four areas: economic, legal, ethical, and philanthropic responsibilities. The impact of CSR is measured not just in terms of FP, but also in terms of customer, employee, and operational performance. The remaining three performances are then evaluated to see if they mediate the impact of CSR on FP. Seven propositions are proposed in the framework, each of which can be tested using survey data. As a result, the framework presented in this paper can be used to assess the impact of CSR on both financial and non-financial performance, as well as to investigate the mediating effect of non-financial performance on the CSR-FP relationship.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
12 December 2022
ISBN
10.2991/978-94-6463-076-3_55
ISSN
2352-5428
DOI
10.2991/978-94-6463-076-3_55How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Esti Dwi Rinawiyanti
PY  - 2022
DA  - 2022/12/12
TI  - A Theoretical Framework for the Mediation Analysis on the Relationship Between Corporate Social Responsibility and Financial Performance
BT  - Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
PB  - Atlantis Press
SP  - 720
EP  - 730
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-076-3_55
DO  - 10.2991/978-94-6463-076-3_55
ID  - Rinawiyanti2022
ER  -