Examining The Financial Returns Of CSR In The Palm Oil Sector : Insights From a Systematic Literature Review

Alfis Yuhendra, Qhisthina Atikah, Yusdiana Yusdiana, Noratun Juliaviani, Aris Zaputra

Abstract


The palm oil industry plays a crucial role in the global economy but faces complex environmental and social challenges. This study aims to analyze how Corporate Social Responsibility (CSR) practices contribute to the financial performance of palm oil companies, particularly in terms of profitability, financial risk management, and operational efficiency. Using the Systematic Literature Review (SLR) method and data analysis supported by Atlas.ti software, this research reviewed 20 peer-reviewed articles published between 2019 and 2024. The findings reveal that sustainability-oriented CSR consistently improves operational efficiency, especially through better resource management and adherence to industry standards. Moreover, CSR plays a role in reducing financial risks, primarily by enhancing investor trust and regulatory stability. However, while there are signs of a connection between CSR and profitability, this relationship remains limited in the reviewed literature, indicating the need for more strategic integration of CSR into core business operations. These results affirm that CSR is not merely a form of social responsibility, but a strategic instrument to strengthen competitiveness, resilience, and long-term performance in the palm oil industry amid growing global sustainability pressures.

Keywords


CSR; Financial Risk; Operational Efficiency; Palm Oil Profitability

Full Text:

PDF

References


Abdul, I., Wulan Sari, D., Haryanto, T., & Win, T. (2022). Analysis of factors affecting the technical inefficiency on Indonesian palm oil plantation. Scientific Reports, 12(1). https://doi.org/10.1038/s41598-022-07113-7

Amalia Fachrudin, K. (2023). Determination of Corporate Social Responsibility Disclosure Using Firm Size as a Moderation Variable in Palm Oil Companies. In Journal of Social Science (Vol. 04, Issue 04).

Amaliya, S., Radyi, M., Abdullah, A., & Yaacob, M. R. (2019). Community Engagement: An Integral Component of CSR for Local Development and Sustainability of Palm Oil Industry. In Article in Academy of Strategic Management Journal. https://www.researchgate.net/publication/350447516

Bank, W. (2023). Palm oil and global economy.

Barney, J. B., Kozlenkova, I. V, Samaha, S. A., & Palmatier, R. W. (2014). Resource-based view: a review and extension. Journal of Marketing, 78(4), 1–20. https://doi.org/10.1016/s0149-2063(01)00115-5

CIFOR. (2023). Challenges in the palm oil industry.

Commission, E. (2023). Renewable energy directive ii(Red ii).

Effendi, A. (2022). Factors Affecting CSR Disclosure on Palm Oil Companies in Indonesia. https://doi.org/10.33258/birci.v4i3.2527

https://www.bircu-journal.com/index.php/birci/article/download/2527/pdf

Freeman, R. E., & Dmytriyev, S. (2017). Stakeholder theory: concepts and applications. Journal of Business Ethics, 145(1), 1–19. https://doi.org/10.4468/2017.1.02freeman.dmytriyev

Haq, A. N., Basuni, S., & Sunkar, A. (2020). Implementation of Corporate Social Responsibility (CSR) policies and program of palm oil plantation companies in PT Perkebunan Nusantara V Riau Province. Jurnal Pengelolaan Sumberdaya Alam Dan Lingkungan, 10(4), 715–724. https://doi.org/10.29244/jpsl.10.4.715-724

IUCN. (2023). Underexplored relationship between csr and financial performance.

Kurz, S. (2021). Corporate Social Responsibility in Global Governance-A Driver for Change towards Environmental Sustainability? An Embedded-Case Study on the Sustainability Discourse in the Palm Oil Industry.

https://www.diva-portal.org/smash/get/diva2:1577746/FULLTEXT02

Limbong, M. (2020). The Role of Corporate Social Responsibility on Education Funding in Palm Oil Plantation PT. Astra Agro Lestari, tbk (PT. AAL,tbk) in Indonesia. 10.2991/assehr.k.200402.014

Mahmud, A. (2019). Legitimacy theory and corporate social responsibility. Journal of Business Ethics, 160(4), 1019–1035. https://doi.org/10.1007/s10551-018-3925-5

https://api.lib.kyushu-u.ac.jp/opac_download_md/2230676/p001.pdf

Nasution, A., Latif, A., Jalil, M., Atikah, Q., Handayani, S., Baihaqi, A., & Faizin, R. (2024). Improving The Quality Of Oil Palm Cultivation With Good Agricultural Practices (Gap) And Good Handling Practices (Ghp) For Supporting Ispo In Kuala Pesisir District Nagan Raya Regency. In International Review of Practical Innovation.

Ngan, S. L., Er, A. C., Yatim, P., How, B. S., Lim, C. H., Ng, W. P. Q., Chan, Y. H., & Lam, H. L. (2022a). Social Sustainability of Palm Oil Industry: A Review. In Frontiers in Sustainability (Vol. 3). Frontiers Media S.A. https://doi.org/10.3389/frsus.2022.855551

Nielsen. (2022). Global consumer preferences for sustainable products.

Nupueng, S., Oosterveer, P., & Mol, A. P. J. (2022). Governing sustainability in the Thai palm oil-supply chain: the role of private actors. Sustainability: Science, Practice, and Policy, 18(1), 37–54. https://doi.org/10.1080/15487733.2021.2021688

Osman, H., & Kadri, A. (2022). Compliance and Rhetoric in Sustainability Reports Published by A Malaysian Plantation Company. Pertanika Journal of Social Sciences & Humanities

https://doi.org/10.47836/pjssh.30.4.22

Pattiselanno, A. E., Phuktjilen, A., Cara, I., & Phoek, A. (2023). Has The Implementation of CST in Increasing The Income of Palm Oil Farmers Communitybeen Optimal? In Russian Law Journal: Vol. XI. https://doi.org/10.52783/rlj.v11i3.1273

Putri, S. Y., Widianingsih, Y., & Dwi Astuti, W. R. (2022). Corporate Diplomacy as Strategy for Facing Corporate Social Responsibility Polemic by Palm Oil Corporates in Indonesia. KnE Social Sciences. https://doi.org/10.18502/kss.v7i12.11537

RSPO (2022). Impact of sustainability practices on stock prices. https://rspo.org/wp-content/uploads/RSPO-Impact-Report-2022.pdf

Sorsa, V. P., & Fougère, M. (2021). Toward Political Explanation of Change in Corporate Responsibility: Political Scholarship on CSR and the Case of Palm Oil Biofuels. Business and Society, 60(8), 1895–1923. https://doi.org/10.1177/0007650320915919

Swandari, F., & Said, L. R. (2023). The Influence of CSR, ROA, and Company Size on Palm Oil Stock Prices in Indonesia: A Causal Analysis (2019-2023). https://www.researchgate.net/publication/383483159

Wedayanti, M. D., Santri, S. H., Rustam, A., Baharuddin, T., Yogia, M. A., & Pulungan, B. I. (2023). CSR and Sustainability of the Palm Oil Industry in Riau Province. Aspirasi: Jurnal Masalah-Masalah Sosial, 14(2). https://doi.org/10.46807/aspirasi.v14i2.4128

Winarti, R., & Siagian, Y. (2023). The Challenge of Implementing Corporate Social Responsibility in Sustainability Certified Palm Oil M.

https://doi.org/10.59188/devotion.v4i8.535

Yustus Sangur. (2020). Pengaruh Corporate Social Responsibility (CSR), Indonesian Sustainable Palm Oil System (ISPO), Dan Return On Investment (ROI) Terhadap Harga Saham Perusahaan Pada Sektor Perkebunan yang Terdaftar di BEI Periode 2014 – 2018.

https://doi.org/10.30598/jak.6.2.18-38




DOI: https://doi.org/10.17969/agrisep.v26i1.45246

Article Metrics

Abstract view : 72 times
PDF - 43 times

Refbacks

  • There are currently no refbacks.


Creative Commons LicenseISSN: 1411-3848E-ISSN: 2579-6372
Copyright© 2000-2025 | ISSN: 1411-3848 | EISSN: 2579-6372 
Jurnal Agrisep is licensed under a Creative Commons Attribution 4.0 International License.

 

Published by: 
Departemen Agribisnis, Fakultas Pertanian, Universitas Syiah Kuala 
associated with AAI (Asosiasi Agribisnis Indonesia). 

Jl. Tgk. Hasan Krueng Kalee No. 3, Kopelma Darussalam,
Banda Aceh, 23111, Indonesia.
Email: agrisep@usk.ac.id

Online Submissions & Guidelines | Editorial Policies | Contact | Statistics | Indexing | Citations