The Effect of Corporate Social Responsibility Disclosure on Financial Performance and Its Impact on Company Reputation

This study aims to analyse the effect of Corporate Social Responsibility (CSR) disclosure on Financial Performance (FP) and its impact on Corporate Reputation (CR). This study uses several theoretical approaches to explain and link the variables, namely stakeholder theory and signalling theory. This article shows that the disclosure of Corporate Social Responsibility on financial performance can affect the company’s corporate reputation. In addition, the empirical findings also indicate a relationship between financial performance and good corporate reputation; it is necessary to underline the importance of stakeholders’ positive perception of the company’s practices. This research provides insights and significantly contributes to business practitioners and policymakers on integrating CSR disclosure with financial performance and its impact on good corporate reputation in business strategy. The findings illustrate how CSR disclosure and transparency can generate financial benefits and reinforce a positive corporate image for internal and external stakeholders.