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...

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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
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author Hery Haryanto
Cindy Hartono
Hesniati Hesniati
author_facet Hery Haryanto
Cindy Hartono
Hesniati Hesniati
author_sort Hery Haryanto
collection DOAJ
description 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.
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institution DOAJ
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publishDate 2025-03-01
publisher Universitas Syiah Kuala
record_format Article
series Jurnal Dinamika Akuntansi dan Bisnis
spelling doaj-art-89c8fb88e2cb4ab0a25246231efbdc4a2025-08-20T02:44:47ZengUniversitas Syiah KualaJurnal Dinamika Akuntansi dan Bisnis2355-94622528-11432025-03-01121214010.24815/jdab.v12i1.3953120105Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green InnovationHery Haryanto0Cindy Hartono1Hesniati Hesniati2Universitas Internasional BatamUniversitas Internasional BatamUniversitas Internasional BatamThis 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.https://jurnal.usk.ac.id/JDAB/article/view/39531corporate social responsibilityfirm performancegreen innovationmanufacturing companies
spellingShingle Hery Haryanto
Cindy Hartono
Hesniati Hesniati
Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
Jurnal Dinamika Akuntansi dan Bisnis
corporate social responsibility
firm performance
green innovation
manufacturing companies
title Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
title_full Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
title_fullStr Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
title_full_unstemmed Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
title_short Unlocking Profitability: How CSR Practices Drive Financial Performance Through Green Innovation
title_sort unlocking profitability how csr practices drive financial performance through green innovation
topic corporate social responsibility
firm performance
green innovation
manufacturing companies
url https://jurnal.usk.ac.id/JDAB/article/view/39531
work_keys_str_mv AT heryharyanto unlockingprofitabilityhowcsrpracticesdrivefinancialperformancethroughgreeninnovation
AT cindyhartono unlockingprofitabilityhowcsrpracticesdrivefinancialperformancethroughgreeninnovation
AT hesniatihesniati unlockingprofitabilityhowcsrpracticesdrivefinancialperformancethroughgreeninnovation