Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Does CSR increase cost stickiness?

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Does CSR increase cost stickiness?

corporate social responsibility; sticky costs; selling, administrative and general expenses;

The purpose of this study is to provide evidence of corporate social responsibility (CSR) commitment and cost stickiness. Cost stickiness is an asymmetric cost behavior in which the rate of increase in cost with increasing activity tends to be greater than the rate of decrease in cost with decreasing activity. The pattern of cost change depends not only on the scale of activity, but also on the direction of change. The research hypothesis states that CSR efforts require long-term commitment to corporate value-adding activities, and that constrained resources are difficult to curb immediately. The survey uses employee benefits and donations as a proxy for her CSR. The survey sampled is Indonesian manufacturing companies with observation years from 2017 to 2020. Research has shown that there is cost containment in selling, general and administrative expenses, and that adding CSR costs to his research model increases the level of cost containment. The results also confirm that changes in activity levels and changes in costs are not necessarily the same. These results provide new evidence for understanding how CSR affects cost containment for manufacturing.

Ika Kristianti , Etna Nur Afri Yuyetta

DOI: 10.26905/jkdp.v26i4.8980

Universitas Merdeka Malang

October 2022

Sri Wahyuni

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

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Jurnal Keuangan dan Perbankan Universitas Merdeka Malang