Investigating the intersection of organizational behavior, supply chain practices, economic outcomes, financial excellence and CSR for corporate identity improvement
Authors: Khan Muhammad Asif 
Published: February 2025

Purpose

This research focuses on the interconnections between corporate social responsibility (CSR), corporate image and various organizational outcomes, including financial performance, supply chain practices and economic results. The study aims to explore the mechanisms through which CSR initiatives shape corporate reputation and subsequently influence future financial performance. It examines the complex interplay among these factors and their cumulative effect on the sustainability and long-term success of organizations.

Design/methodology/approach

The present investigation uses structural equation modeling with partial least squares techniques to examine the interrelationships and feedback mechanisms among the variables under scrutiny. Quantitative information was gathered through an extensive content analysis of annual reports from medium- to large-scale corporations operating in Indonesia, Malaysia and Singapore.

Findings

The investigation highlights the role of CSR in enhancing organizational reputation and facilitating positive financial outcomes. This demonstrates how the strategic implementation of CSR when integrated with core business processes and ethical supply chain management, can improve operational efficiency and strengthen brand loyalty. A significant gap in the existing literature pertains to the analysis of the interrelated effects of these aforementioned factors on organizational dynamics and performance indicators.

Research limitations/implications

Geographical Scope: The findings, based on companies in Indonesia, Malaysia and Singapore, may not apply to other regions with different contexts. Cross-Sectional Data: The study’s cross-sectional data captures a single point in time, limiting insights into how relationships evolve over time. Self-Reported Data: Survey data may be biased, with respondents potentially overstating CSR activities and impacts. Sector-Specific Variations: Sector-specific variations in CSR practices may not be fully captured, suggesting a need for sector-specific models in future research.

Practical implications

This research provides a strategic framework for integrating CSR into core business operations, enhancing both operational efficiency and financial performance. Business leaders can make informed decisions about CSR investments, understanding their positive impact on corporate image and financial outcomes. Emphasizing ethical supply chain practices can lead to cost savings and improved supplier relationships. Policymakers can use these insights to develop supportive regulations and incentives, fostering sustainable business practices. Additionally, companies can better manage risks related to reputational damage, regulatory noncompliance and operational inefficiencies, promoting business resilience and gaining a competitive market advantage for long-term sustainability.

Social implications

This research promotes corporate accountability and a culture of responsibility, enhancing community relations and trust. By encouraging eco-friendly measures, it contributes to environmental sustainability and resource conservation. Highlighting CSR activities aimed at social welfare can improve social equity and community well-being. Additionally, a positive corporate image fostered by CSR can lead to greater public support and customer loyalty. Overall, the research underscores the broader societal benefits of responsible business practices, demonstrating their potential to contribute to a cleaner environment, better community relations and improved social welfare.

Originality/value

This study investigates the interplay between CSR, organizational behavior, corporate image, supply chain management and financial performance, illuminating their collective impact on business operations and results. Using stakeholder theory and a resource-based view, the research highlights the crucial role of ethical supply chain practices in bolstering corporate reputation and financial outcomes, providing valuable insights for organizational leaders to align CSR initiatives with company objectives and foster sustainable and successful business practices.