The Effect of Contextual Variables in the Relationship between CSR and CFP: Evidence from Indonesian Companies

Abstract

The objectives of this study is to investigate whether business environment, business strategy,formalization, decentralization, reliance on combination of belief & boundary system, relianceon combination of diagnostic & interactive control system, reliance on interactive control systemmoderate the relationship between CSR and CFP under the slack resource and good managementtheories. 220 respondents from manufacturing companies listed on the Jakarta StockExchange were selected and two regression models were developed to examine the relationshipbetween the related variables. The findings show that business environment has moderated theCSR-CFP link under good management theory, decentralization has moderated the CSR-CFPlink under slack resource theory, and reliance on combination of diagnostic and interactive controlsystem has moderated the CSR and CFP link based on slack resource theory. Copyright © www.iiste.org