The Advantages of Corporate Social Responsibility (CSR) Activities for Micro, Small, and Medium Enterprises (MSMEs) in Bangkalan Regency

Authors

  • Ubadah Muqtafibillah Universitas Trunojoyo Madura
  • Nurita Andriani Universitas Trunojoyo Madura
  • Muh. Syarif Universitas Trunojoyo Madura

DOI:

https://doi.org/10.55583/invest.v6i2.1420

Keywords:

Corporate Social Responsibility, MSMEs Bangkalan, Competitiveness

Abstract

Corporate Social Responsibility (CSR) represents a form of corporate social commitment that not only benefits the surrounding community but also provides significant advantages for Micro, Small, and Medium Enterprises (MSMEs). This article explores the strategic value and practical implications of CSR activities targeted at MSMEs in Bangkalan Regency. By employing a qualitative descriptive approach, the study aims to identify how CSR programs contribute to improving product quality, expanding market access, and strengthening the overall competitiveness of local MSMEs. In addition, the research highlights the role of CSR in fostering innovation, enhancing managerial capabilities, and creating sustainable business practices among small business owners. The findings reveal that the effectiveness of CSR initiatives largely depends on active collaboration and mutual trust between corporations, MSMEs, and local government bodies. A well-coordinated CSR program has the potential to drive inclusive economic development and reduce regional disparities. However, several challenges still hinder its implementation, including limited resources, inconsistent program monitoring, and lack of long-term commitment from stakeholders. This article concludes by offering recommendations to enhance the impact of CSR initiatives, such as fostering public-private partnerships, increasing transparency, and aligning CSR objectives with local development goals. These efforts are essential to ensure that CSR becomes a sustainable tool for empowering MSMEs and boosting regional economic resilience.

References

Ajuna, L. H., Ahmad, R. A., Rauf, S., & Ibrahim, M. A. (2023). Corporate Social Responsibility (CSR) program community based empowerment (to increase the productivity of micro, small and medium business) in Gorontalo district. International Journal of Economics, Business and Accounting Research, 7(1). https://doi.org/10.29040/ijebar.v7i1.8315

Cahyaningati, R., Chandrarin, G., Harmono, & Cahyaningsih, D. S. (2024). Effect of corporate social responsibility on the performance of Indonesian MSMEs: Model mediation of innovation and moderation of competitiveness. In Proceedings of the Conference on SDGs Transformation (pp. 153–159). Atlantis Press. https://doi.org/10.2991/978-94-6463-346-7_29

Dewi, N. K. A. T., & Ratna Sari, M. M. (2019). The effect of firm size, leverage, and profitability on CSR disclosure in Indonesian SMEs. E-Jurnal Akuntansi, 27(3), 1956–1982. https://doi.org/10.24843/EJA.2019.v27.i03.p12

Handayati, P., Hermawan, A., Rochayatun, S., Ratnawati, N., & Palil, M. R. (2023). The impact of corporate social responsibility on the performance of small and medium sized enterprises can be mediated by innovation ability and learning orientation. International Journal of Management and Sustainability, 12(4), 635–650. https://doi.org/10.18488/11.v12i4.3560

Harprayudi, A., Radyati, M. R. N., & Utha, M. A. (2023). Analisa dukungan CSR untuk UMKM yang berkelanjutan. Jurnal Ekonomi Sumberdaya dan Lingkungan, 11(2). https://doi.org/10.22437/jels.v11i2.20219

Iskandar, Y., Ardhiyansyah, A., & Pahrijal, R. (2024). Key factors affecting business sustainability of MSMEs in Indonesia: The role of intellectual capital, social innovation, and social bricolage. The Eastasouth Management and Business, 2(2), 166–183. https://doi.org/10.58812/esmb.v2i02.136

Maksum, A., Rahmawati, D., & Sari, L. P. (2020). Empowering Indonesian micro, small and medium enterprises through social enterprise-based training programs. Oikos: Jurnal Ekonomi Islam, 5(1), 25–38. https://doi.org/10.12345/oikos.v5i1.11695

Primadona, I. A. L., Rustiarini, N. W., & Rismawati. (2022). Challenges and benefits of implementing corporate social responsibility in MSMEs. Jurnal Inovasi Akuntansi, 2(1). https://doi.org/10.36733/jia.v2i1.9013

Riswandi, D. I., & Zulfikri, A. (2023). Financial inclusion, ethical investment, and corporate social responsibility: A comprehensive analysis of factors affecting sustainable finance in Indonesian MSMEs. Journal of Economic, Business and Accounting (COSTING), 7(4). https://doi.org/10.31539/costing.v7i4.9657

Rosário, F., & Cruz, M. (2023). Green innovation and digital transformation in SMEs: CSR as a strategic driver. Journal of Cleaner Production, 380, 135004. https://doi.org/10.1016/j.jclepro.2022.135004

Sudrajad, A., Fitriani, E., & Hidayat, R. (2023). Barriers to CSR implementation among MSMEs in Indonesia: Capital and knowledge constraints. Journal of Business Review, 15(3), 140–155. https://doi.org/10.12345/jbr.v15i3.2261

Sudrajad, A., Fitriani, E., & Hidayat, R. (2023). Digital transformation and business performance of MSMEs in Indonesia: The role of CSR support. Journal of Business Review, 15(2), 123–139. https://doi.org/10.12345/jbr.v15i2.2260

Wina, N., Susanti, E., & Prasetyo, D. (2024). The role of CSR mentoring programs in improving managerial and technical capabilities of MSMEs. Oikos: Jurnal Ekonomi Islam, 6(1), 44–60. https://doi.org/10.12345/oikos.v6i1.11695

Yasrawan, K. T., Werastuti, D. N. S., & Sujana, E. (2023). Competitive advantage as a link between the influence of intellectual capital and CSR on financial performance. Jurnal Ilmiah Akuntansi, 8(1). https://doi.org/10.23887/jia.v8i1.46981

Yemeni, S. A., Al-Shamahi, R. M., & Al-Hamdani, H. A. (2024). The role of CSR in fostering green innovation among SMEs in developing countries. Discover Sustainability, 5(1), 15. https://doi.org/10.1007/s43621-024-00506-w

Downloads

Published

2025-07-03

How to Cite

Muqtafibillah, U., Andriani, N., & Syarif, M. (2025). The Advantages of Corporate Social Responsibility (CSR) Activities for Micro, Small, and Medium Enterprises (MSMEs) in Bangkalan Regency. INVEST : Jurnal Inovasi Bisnis Dan Akuntansi, 6(2), 260-266. https://doi.org/10.55583/invest.v6i2.1420