An examination of corporate social responsibility and financial performance

Purpose – The increasing demand of stakeholders' interests in social performance has put pressure on corporations to undertake social responsibility reporting in their operations in order to satisfy the demands and to gain public support. Some organisations have already responded, either by publishing a separate report regarding their social activities, or by providing such information in their annual report or on their web site. However, in some developing countries such as Indonesia, there is little or no regulation and with no expectation to follow international standards, corporations in these countries tend not to provide corporate social responsibility (CSR) reports. As there is a lack of regulatory controls in reporting CSR activities in most developing countries, the question of what the “carrot” is for the corporations is the crux of this research. The purpose of this paper is to investigate whether Indonesian corporations are aware of CSR.Design/methodology/approach – This research aims to inves...

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