THE ROLE OF CORPORATE SOCIAL RESPONSIBILITY ON COMPANY VALUE IN THE MANUFACTURING SECTOR
Abstract
The purpose of this study is to examine how corporate social responsibility, or CSR, affects the value of manufacturing companies. Corporate Social Responsibility (CSR) refers to an organization's pledge to uphold moral principles, facilitate sustainable economic growth, and enhance the well-being of its workforce and the local community. In the manufacturing sector, the implementation of CSR has its own challenges because the production process directly affects society and the environment. The impact of CSR on business performance is investigated in this study through a literature review methodology, especially in terms of improving reputation, consumer loyalty, operational efficiency, and risk management. The results of the analysis show that CSR has great potential to increase company value through improving reputation, operational efficiency, and reducing regulatory risk. However, the success of CSR depends on strategic integration with the company's core business. By integrating CSR into a long-term strategy, manufacturing companies can take advantage of competitive advantages that contribute to sustainable growth in company value.
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