CSR dan Kinerja Keuangan Perusahaan Publik Terdaftar di Malaysia

Abstract

Implementing a corporate social responsibility (CSR) strategy is believed to bring financial benefits to businesses while also enhancing their corporate image. However, there are numerous reasons for engaging in CSR activities. It is clear that CSR involvement requires substantial financial and resource investment, which can impact a company's profit margins. Nonetheless, CSR efforts have been shown to boost a company's reputation and present a positive image to stakeholders. Although businesses incur costs, these investments are expected to yield increased profits and strengthen shareholder trust and confidence. This study aims to examine the effect of CSR on the financial performance of selected sectors that contribute to Malaysia's economy. Using a quantitative approach, this research analyzes secondary data collected through Stata 14 SE software, covering the period from 2016 to 2020 for 124 publicly listed Malaysian companies in the construction, industrial products and services, consumer products and services, plantation, and energy sectors. The study reveals that CSR has an insignificant impact on the return on assets (ROA) of these companies. However, the findings also indicate that CSR significantly affects financial performance when measured by net profit margin (NPM) in these sectors.