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Sustainability 15 11218 - Part7

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5 views1 page

Sustainability 15 11218 - Part7

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official.takohero
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Sustainability 2023, 15, 11218 7 of 28

2.4. Corporate Social Responsibility (CSR)


A crucial component of business operations is CSR, which involves a corporation mak-
ing voluntarily positive environmental contributions through investments in the market,
the environment, and society [45]. The business is accountable for its decisions that impact
consumer behavior, society, and the environment. CSR is pursuing financial success while
upholding moral principles, society, and the environment. Corporate business goals to
improve society’s environment have benefited from CSR over time [46]. Although there are
several methods of CSR, some businesses feel that their main duty is to increase shareholder
value. Businesses should still be concerned with societal well-being despite creating riches
for shareholders. Enterprises and society are interconnected stakeholders; whereas society
depends on enterprises for services, infrastructure investment, and economic growth, busi-
nesses depend on society for resources and lower demand [47]. As a result, connections
exist between the environment, society, and economy.
Businesses have recently switched their focus away from a fragmented strategy and
toward a complete approach in the era of sustainable development. CSR has been crucial in
emerging markets such as Indonesia, where social and economic issues are pervasive, and
business ethics are lax. Incorporating socio-environmental issues into business operations
is made possible by CSR, which also sets the standard for enterprises to prioritize safe-
guarding their local communities’ natural, social, and economic surroundings [48]. This
denotes that a corporation has strategically raised its major investment in CSR, allowing
it to be integrated with macro marketing initiatives. Micromarketing’s main objectives
are to increase economic value and satisfy societal needs. Companies can combine social
initiatives, environmental stewardship, and shareholder value development by integrating
green marketing strategies into macro marketing efforts, bridging the gap between two
different CSR viewpoints. As companies strive to enhance the environment, there has been
an increase in customer loyalty, improved green brand positioning, and profitability, owing
to the growing demand for eco-friendly products.
The study discusses how socially responsible businesses address societal needs, en-
hance their reputation, and ensure lasting product demand. CSR is a term that refers to a
company’s actions that impact stakeholders, the environment, the economy, and society.
Using CSR as a bridge, the study focuses on the effects of green investment and green
financing on the sustainable business performance of foreign chemical industries in Indone-
sia. The study seeks to understand how CSR functions as a mediating factor between green
investments and green financing and these companies’ sustainable business performance.
The article underlines how many businesses have adopted CSR as one of their core values
because it substantially affects people, the environment, and profit.

2.5. Rights and Obligations of the Manager in Companies


Managers are defined as individuals who are responsible for making decisions and
managing resources in companies. They are key stakeholders in implementing green
investment and financing strategies and integrating CSR into business operations, as they
are responsible for allocating resources and making strategic decisions that influence the
company’s sustainability and performance. According to Robbins and Coulter [49], man-
agers have the right to make decisions about the company’s operations, access information
about its financial performance, and receive compensation for their work. They also have
the obligation to act in the best interests of the company and its stakeholders, comply with
relevant laws and regulations, and act with due care and diligence. In the current study of
foreign chemical industries operating in Indonesia, managers have additional rights and
obligations related to implementing green investment and financing strategies, promot-
ing corporate social responsibility, and ensuring sustainable business performance [50].
These include the right to allocate resources to green investments and financing, promote
corporate social responsibility, and make decisions that prioritize long-term sustainability.
Managers also have the obligation to comply with environmental regulations and stan-

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