Corporate Social Responsibility is Viewed from a Contingency Perspective

Abstract

Corporate Social Responsibility is a corporate social responsibility to stakeholders where the company is part of the social environment. Corporate Social Responsibility must achieve balance or must be able to integrate from the start of environmental economics and social issues at the same time can provide and meet the expectations of shareholders and stakeholders. So, the company has a responsibility to the corporate environment. Most companies do only corporate social responsibility voluntarily. Contingency theory is a theory that adjusts leaders to the right conditions. Contingency theory argues that leader performance is determined from his understanding of the situation in which they lead. Managers sometimes lack understanding of the mindset rather than Corporate social responsibility. This study uses a literature study to see how CSR is viewed from contingency theory. From the analysis, it can be concluded that CSR with company performance occurs in differences of opinion. There are researchers who claim that the implementation of CSR is determined by industry partnerships, the role of government, and managerial incentives. The implementation of corporate social responsibility in the company must be freed from shortterm goals. Corporate social responsibility does not directly have an impact on improving financial performance.