The Use of Management Control System in Corporate Social Responsibility (CSR) Strategy Implementation and CSR Activities on Sustainability Reporting
Keywords:management controls system, corporate social responsibility, CSR strategy, CSR activities on sustainability reporting
Objective: This study aims to investigate the impact of the relationship between CSR activities and the strategies employed to ensure their proper management in line with company objectives. Global surveys consistently rank the mining, gas and other sectors at the bottom of all sectors in terms of social and environmental performance. Therefore, companies in these sectors have no choice but to change their approach through a comprehensive understanding of their business impacts.
Methodology: The method used in this study is purposive sampling, where the sample criteria include companies featured in sustainability reports, as well as companies that have incurred environmental costs in the form of environmental development program costs.
Result and Conclusion: The study found that the strength of a company's management control system (MCS) plays a significant role in moderating the relationship between CSR activities and sustainable reporting. When the t-value is greater than 2.055 and the significance level (sig) is less than 0.05, the MCS variable acts as a moderator, indicating that a strong control system reinforces the relationship between CSR activities and sustainable reporting. Conversely, when the MCS is weak, the relationship between CSR strategy and sustainability reporting is also weakened.
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