Integration of corporate social responsibility for improved company performance: Evidence from the Indonesian manufacturing industry

Abstract

This study aims to investigate how corporate social responsibility (CSR) integration can improve company performance. Using 435 surveyed data from the Indonesian manufacturing industry in Java, this study employed Partial Least Square Structural Equation Modelling (PLS-SEM) to verify the hypotheses. The findings reveal that strategic CSR integration has a significant impact on employee, operational, and financial performances, while functional CSR integration has a substantial effect on customer, employee, operational and financial performances. The results also suggest that strategic CSR integration has a significant effect on functional CSR integration. The findings highlight that, when mediated by functional integration, strategic integration has a greater impact on company performance. The findings can encourage executives to integrate CSR more effectively at the strategic and functional levels in order to obtain better social and financial performances.