The Effect of Slack Resources on Strategic Corporate Social Responsibility (CSR): Empirical Evidence on Indonesian Listed Companies

Journal Title: GATR Global Journal of Business & Social Science Review - Year 2017, Vol 5, Issue 2

Abstract

Objective - This study examines the effect of companies' slack resources on strategic Corporate Social Responsibility ('CSR') and also non-strategic CSR. By analysing the slack resources as a determinant of CSR, it might indicate the companies' priority regarding their strategic CSR as part of companies' strategy. Methodology/Technique - Instead of using profitability as a measure of slack resources, this study employs slack resources as a variable itself as it was developed by Burgeois (1981), based on financial data in the companies' financial statements. Findings - The empirical result of this study indicates that un-absorbed slack resources positively affect the strategic CSR and also non-strategic CSR of a company, while absorbed slack resources do not significantly affect either. Novelty - Unlike previous studies, this study does not use profitability as a proxy of slack resources, but uses slack resources as a variable itself.

Authors and Affiliations

Yosefa Sayekti

Keywords

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  • EP ID EP184969
  • DOI -
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How To Cite

Yosefa Sayekti (2017). The Effect of Slack Resources on Strategic Corporate Social Responsibility (CSR): Empirical Evidence on Indonesian Listed Companies. GATR Global Journal of Business & Social Science Review, 5(2), 70-75. https://europub.co.uk/articles/-A-184969