The Effect of Corporate Social Responsibility and Environmental Performance on Firm Performance: The Mediation of Business Competitiveness

Abstract

The aim of this research is to assess business competitiveness as a mediating variable in the influence of corporate social responsibility and environmental performance on company performance. Data collection through this documentation method is used to obtain financial report data on manufacturing companies registered on the IDX for 2017-2021. The sample used was 444 of the 520 population of manufacturing companies in Indonesia. This research uses statistical tools Stata 20. CSR has a positive effect on business competitiveness, environmental performance has a positive effect on business competitiveness, CSR has a positive effect on company performance, environmental performance has a positive effect on company performance, business competitiveness has a positive effect on company performance and power. competitiveness is able to mediate CSR and company performance and the seventh hypothesis is rejected, namely that environmental performance has no effect on business competitiveness, this is because business competitiveness aims to achieve company profits and is not related to environmental performance and the seventh hypothesis is that business competitiveness is not able to mediate environmental performance and company performance. The limitations of this research are: Firstly, the proxy for environmental performance is only measured by the use of resources, namely air and electricity. Suggestions for future research can be to use more detailed proxies such as using primary data using interview results from companies because environmental performance can be researched more deeply and in-depth. This research only uses manufacturing companies, even though the environmental impact can also be on mining companies.