The Impact of Corporate Social Responsibility on Financial Performance As Mediated by Corporate Strategy, Corporate Reputation, and Stakeholder Engagement
Indonesia is one of the emerging states in Asia, and CSR practice is not new in the region. Indonesia is known as Southeast Asia’s largest economy and a member of the G20 forum of major economies. Being a member of the G20 economies of the world and the largest economy in Southeast Asia, Indonesia has well-developed facilities and other factors that attract the establishment of multinational companies.
In recent years, corporate social responsibility or CSR is becoming a trend in Indonesia. There are many companies that carry out corporate social responsibility. In Indonesia, CSR is only required for companies engaged in natural resources, while other companies can voluntarily participate in CSR. But although CSR is only an obligation for companies engaged in natural resource-related fields, other large-scale companies have embraced the concepts and principles of CSR in their operations, because of their awareness of the financial benefits associated with CSR.
Muhammad Asif Khan presented a dissertation titled “The Impact of Corporate Social Responsibility on Financial Performance as Mediated by Corporate Strategy, Corporate Reputation, and Stakeholder Engagement” joined by a team of promoters and the examination committee. The goal of this dissertation was to find out how corporate social responsibility (CSR) impacts financial performance.
The impact of corporate social responsibility on financial performance was the main focus of Muhammad Asif Khan during his doctoral study at BINUS University. On Tuesday (22/9) at the BINUS University Alam Sutera Campus, the Doctor of Research in Management (DRM) Program of BINUS BUSINESS SCHOOL held an open dissertation defense with Muhammad Asif Khan as the promovendus. Joining promovendus Muhammad Asif Khan, the promoter team consisted of Prof. Dr. Adler Haymans Manurung, MM, Mcom; Dr. Ir. Hardijanto Saroso, MMT., MM.; and Dr. Gatot Soepriyanto, SE, Ak, M.Buss. (Acc).
Impact of Corporate Social Responsibility on Financial Performance
Muhammad Asif Khan used a quantitative and deductive approach. A quantitative approach is used to analyze the relationship between CSR values and financial performance values among IDX listed companies, while a deductive approach is used to qualify any new findings on the lines of existing theories, literature, and knowledge. He successfully collected data on both state-owned companies and non-state-owned companies with a focus on the population group of 653 companies listed in the IDX.
In conclusion, Muhammad Asif Khan showed that the effects of corporate social responsibility (CSR) on financial performance are not significant as seen through the negative coefficient, indicating that the relationship between the two is in the same direction but not significant, meaning that corporate social responsibility (CSR) conducted by a company has no significant impact on the company’s financial performance. He also added that business connections with political elites exert a positive and significant change in a firm’s performance. In addition, these results also led him to graduate with honors.
The Journey of Dr. Muhammad Asif Khan
Muhammad Asif Khan was born on March 3, 1980, in Abbottabad, Pakistan. In 2002, Muhammad Asif Khan completed his Bachelor’s Degree at the University of Peshawar, Pakistan. Then, he proceeded to continue his academic journey at the University of Peshawar until 2006. He studied Art and Science and then studied Law. In 2012, he finished his study at Malmo Hogskola, Sweden, and got a Master of Arts Degree. The journey continued and he took his Doctoral Degree at BINUS BUSINESS SCHOOL in 2017.
Muhammad Asif Khan began his professional career at Utman Khel Law Associates in Pakistan. Then in 2014, he continued his career at PT. Kalpataru Investama Jakarta as a Contract Manager and at One-Link Consulting in Jakarta as a Senior Associate until recently. Currently, Muhammad Asif Khan also has a role at Bina Nusantara University as a lecturer, since 2015.
He is a very smart and creative person who always seeks knowledge and experiences. He has published a total of four journal articles on various topics. Currently, he is working on three other journal articles that will be published soon.