International Journal of

ADVANCED AND APPLIED SCIENCES

EISSN: 2313-3724, Print ISSN: 2313-626X

Frequency: 12
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 Volume 12, Issue 3 (March 2025), Pages: 205-215

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 Original Research Paper

Corporate social responsibility and profitability as sustainability strategies to maximize firm value

 Author(s): 

 David H. M. Hasibuan 1, *, Heri Sastra 2, Firdaus Amyar 1

 Affiliation(s):

 1Postgraduate Program, Institut Bisnis dan Informatika Kesatuan, Bogor, Indonesia
 2Faculty of Business, Institut Bisnis dan Informatika Kesatuan, Bogor, Indonesia

 Full text

  Full Text - PDF

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0009-0001-9558-615X

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2025.03.020

 Abstract

This study addresses a research gap by examining the relationship between stock price movements, Corporate Social Responsibility (CSR) implementation, and profitability in the consumer goods subsector after the COVID-19 pandemic. The findings contribute to the ongoing debate on whether companies should invest in CSR during financial difficulties to gain stakeholder support. While CSR spending may appear burdensome in times of crisis, it serves as a strategic investment that signals the sustainability of a company's operations. Support from the capital market is also essential for business survival. The study analyzes stock and financial data from consumer goods companies listed on the Indonesia Stock Exchange between 2021 and 2023. Using Moderated Regression Analysis, the results indicate that CSR strengthens the relationship between profitability and firm value. Additionally, CSR directly enhances firm value, whereas profitability alone does not. These findings suggest that investors place greater importance on social and environmental initiatives post-pandemic than on profitability. As a result, companies in the consumer goods subsector are encouraged to increase their CSR engagement, as it promotes corporate sustainability and strengthens protections for employees, customers, creditors, and shareholders.

 © 2025 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Corporate social responsibility, Firm value, Profitability, Stock price movements, Consumer goods sector

 Article history

 Received 14 October 2024, Received in revised form 1 March 2025, Accepted 20 March 2025

 Acknowledgment

This research was supported by a research grant from the Directorate General of Higher Education (DIKTI), Ministry of Education, Culture, Research, and Technology (MoECRT) Indonesia, under the Fundamental Research - Regular with the contract number 106/E5/PG.02.00.PL/2024 on 11th June 2024 and derivative contract number 089/SP2H/RT-MONO/LL4/2024 on 14th June, 2024. The authors would like to express their gratitude for the financial support that made this research possible. We also extend our thanks to students of Institut Bisnis dan Informatika Kesatuan, Bogor, Indonesia, for their valuable contributions and assistance during this research.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Hasibuan DHM, Sastra H, and Amyar F (2025). Corporate social responsibility and profitability as sustainability strategies to maximize firm value. International Journal of Advanced and Applied Sciences, 12(3): 205-215

 Permanent Link to this page

 Figures

 Fig. 1 Fig. 2

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 

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