Beyond Profit: Peran Corporate Social Responsibility and Business Ethics in Building Sustainable Business Performance through Strategic Planning pada UMKM

Afif Nur Rokhman; Sudarmiatin Sudarmiatin; Agus Hermawan; Wening Patmi Rahayu

doi:10.55606/jumia.v4i4.4614

Authors

Afif Nur Rokhman Universitas Negeri Malang
Sudarmiatin Sudarmiatin Universitas Negeri Malang
Agus Hermawan Universitas Negeri Malang
Wening Patmi Rahayu Universitas Negeri Malang

DOI:

https://doi.org/10.55606/jumia.v4i4.4614

Keywords:

Business Ethics, Corporate Social Responsibility, MSMEs Culinary, Strategic Planning, Sustainable Business Performance

Abstract

This study aims to analyze the influence of Corporate Social Responsibility (CSR) and Business Ethics on Sustainable Business Performance among culinary MSMEs producing traditional souvenirs in Jombang, East Java, with Strategic Planning as the mediating variable. The research was motivated by the tendency of culinary MSMEs to neglect social responsibility and business ethics due to the pressure of short-term profit orientation, as well as a research gap—few studies have examined the role of strategic planning as a mechanism that bridges CSR and business ethics with sustainable performance at the MSME level. The research design was quantitative-causal, employing purposive sampling of 106 SME operators under the guidance of the East Java Provincial Cooperative and SME Agency who employed at least one employee. Data were collected via a 1–5 Likert-scale questionnaire and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The test results show that CSR and Business Ethics each have a significant positive effect on Sustainable Business Performance, both directly and through the mediation of Strategic Planning—which was found to be significant in both indirect pathways—while Strategic Planning was also found to have a significant positive direct effect on sustainable performance. This study makes a theoretical contribution to the literature on Stakeholder Theory and the Resource-Based View at the MSME level, as well as a practical contribution to the East Java Cooperative and MSME Office and culinary business operators in designing capacity-building programs that simultaneously integrate ethical, social, and strategic aspects.

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