The Relationship of CSR and Financial Per formance: New Evidence from Indonesian Companies

Abstract

The research objectives of the study are to investigate whether there are any positive relation
ships between CFP and CSR under the slack resource theory and to investigate whether there 
are any positive relationships between CSR and CFP under good management theory by inte
grating concept of strategic management into the definition of CSR as sustainable corporate 
performance including economy, social, and environment. To answer the research questions of 
this study, questionnaire-based survey research design was used. The questionnaires that in
clude items representing  variables in this study (corporate social performance, corporate finan
cial performance, business environment, strategy, organization structure, and control system) 
were sent to the respondents who are managers of state-owned companies (BUMN) and private-owned companies using post and e-mail services. There is a positive relationship between CFP 
and CSP under the slack resource theory and under good management theory.