Kinerja Keuangan, Tanggungjawab Sosial dan Reputasi Perusahaan

Abstract

A firm's reputation, which represents the way stakeholders and the public perceive the firm, is helpful in leading the firm towards sustainable business performance. As social and environmental awareness increases among the public, it has become a critical need for business organizations to ensure sustainable business performance to attain a unique reputation. This research examines the impact of financial performance and firm size on corporate social responsibility (CSR) and company reputation. In doing so, we have collected secondary data from Indonesian non-consumer cyclical firms that are listed on the Indonesia Stock Exchange (IDX). The data was analyzed using the logistic regression method. The results revealed that return on assets has a positive impact on CSR quality and firm reputation. Inversely, the current ratio has a negative impact on CSR quality and firm reputation. The findings also indicated that the quality of CSR practices has a significant and positive impact on a firm's reputation. The study suggests that with the effective implementation of CSR, firms can achieve a good image among stakeholders, improve their reputation, and enhance sustainable business performance.