The Effect of Corporate Social Responsibility to Organizational Performance Among Selected Manufacturing Companies: Basis for Management Intervention Plan Proposal

Abstract

Currently, corporate social responsibility (CSR) has been one of the crucial factors for manufacturing companies both in local and international settings. Despite CSR becoming more and more important, manufacturing companies have particular difficulties putting good CSR initiatives into action. The study determined the effect of corporate social responsibility to organizational performance among selected manufacturing companies as a basis for management intervention plan proposal. This hypothesis was rejected as corporate social responsibility implementation by the manufacturing company has significant effect to their current organization performance. The results showed the degree of organizational effectiveness of a corporation defines its performance in major part. Effective delivery plans depend on good lead time management since it helps one to track the delay between order placing and delivery execution. The study also revealed obvious differences between many degrees of CSR implementation, so underlining effective CSR projects. Top among the problems is including CSR into the main business plan and ensuring it aligns with overall corporate goals. Second and requiring clearly defined policies and supporting systems is managing complex criteria tied to social and environmental commitments. Third-ranked issue requiring accurate measurements and evaluation methods is knowing how CSR efforts effect company performance.