Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation

This study explores the influence of corporate social responsibility (CSR) and green innovation on corporate financial performance. Using purposive sampling, the research examines a sample of 126 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Data were collec...

Full description

Saved in:
Bibliographic Details
Main Authors: Hery Haryanto, Cindy Hartono, Hesniati Hesniati
Format: Article
Language:English
Published: Universitas Syiah Kuala 2025-03-01
Series:Jurnal Dinamika Akuntansi dan Bisnis
Subjects:
Online Access:https://jurnal.usk.ac.id/JDAB/article/view/39531
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This study explores the influence of corporate social responsibility (CSR) and green innovation on corporate financial performance. Using purposive sampling, the research examines a sample of 126 manufacturing companies listed on the Indonesia Stock Exchange (IDX) from 2018 to 2022. Data were collected from the sample companies’ annual reports. Employing regression analysis to analyze the data, this study finds that CSR and green innovation positively affect financial performance. Companies that actively engage in CSR initiatives are more likely to implement environmentally friendly innovations. This study also found that green innovation mediates the relationship between CSR and financial performance. Consequently, prioritizing CSR fosters green innovation, which, in turn, improves financial performance through increased efficiency, corporate reputation, and market opportunities. This study provides valuable insights for managers and practitioners, highlighting the strategic role of CSR in strengthening financial performance through green innovation.
ISSN:2355-9462
2528-1143