The integration of social responsibility into business operation: case study of Indonesian manufacturing industry

Abstract

Prior studies argue that CSR should be integrated with business operations to get its benefits. However, the empirical research on how CSR and business operations can be incorporated is still limited. This study aims to investigate how to integrate CSR and business operations and to identify the impact of such integration on company performance. Using a sample of 342 manufacturing companies in Java, Indonesia, PLS-SEM was employed to create a path model depicting the relationships between functional integration and company performance. The results showed that Cost, Quality, Supplier, and Employee, have significant positive relationships on company performance, while Innovation and Customers have no impact on company performance.