Exploring the Sustainable Shareholder Value of Corporate Social Responsibility Activities

This research aims to explore the long-term benefit of the consistent implementation of
CSR activities in creating sustainable value for shareholders, based on the
argumentation of a sustainability approach. The measurement of sustainable
shareholder value uses an accounting-based and market-based approach. Since the
benefit of CSR cannot be expected in the short-term but in the longer-term, this study
requires that the companies should have implemented CSR for at least five years to be
included in this research sample. These results support the argumentation of
sustainability in which CSR has a positive association with the sustainable shareholder
value using both accounting-based and market-based measurement. In addition, this
research also uncovers that there is a difference association model of CSR and
sustainable shareholder value between firms that have high social and environmental
risk (high-profile companies) and firms that have low social and environmental risk
(low-profile companies).