Corporate social responsibility practices versus firm value: An exploration study

Abstract

Initially, corporate social responsibility (CSR) implementation was a voluntary commitment of the company to the environment and to society. However, nowadays, the implementation of CSR becomes a corporate obligation. The obligation to implement CSR can influence all stakeholders and be influenced by the company’s business operations. Based on the phenomenon of obligation and increasing implementation of CSR in coal mining companies by using theoretical foundations laid by Gregory, Tharyan, and Whittaker (2014) and Crisóstomo, de Souza Freire, and Cortes de Vasconcellos (2011). The purpose of this research is to explore CSR practices and their impact on firm value to business sustainability in coal companies in the East Kalimantan Province. This research is designed and presented with qualitative methods, to explore and understand the meaning. The results show CSR practices of coal companies are not only to comply with applicable laws and regulations, but they also intend to create long-term positive impacts for stakeholders from stakeholder theory, legitimacy theory, and social contract theory points of view. This is because CSR practices are focused on responsibility towards the society or community. Moreover, this research is expected to be used in increasing knowledge and meaning regarding the application of CSR in strategic management in dealing with good corporate governance.