Exploring the Role of Environmental Impact in Maximizing the Effect of CSR on Profitability

Abstract

This study aims to look at the effect of CSR on profitability and
environmental impact as a moderating variable in the relationship
between CSR and profitability. The method used in this study is a
quantitative method with secondary data derived from sustainability
reports of wholesale, retail, telecommunications, mining, transportation
and public utility sector companies in 2022. Sample selection using
purposive sampling method with a population of 148 companies listed
on Osiris. The sample used was 124. This data is processed using
multiple linear regression tests. The results showed that CSR has no
significant effect on profitability proxied by NPM. Environmental
impact does not moderate the relationship between CSR and
profitability. Environmental impact has a positive effect on profitability
which is a new discovery in the study. The results of this study can
contribute to companies and investors in decision making.