The objective of this study is to give empirical findings about the relationship between corporate social responsibility, financial performance, and market performance. This study uses the sample of consumer goods companies in the Indonesian Stock Exchange during 2007-2010. The analysis is completed by interviewing consumers, investors, and stock analysts from financial institution in Surabaya, Indonesia.
Statistical results of this study show that corporate social responsibility leads increase of financial performance, but have no significant effect to market performance. Corporate social responsibility will build consumers’ trust about the products and will encourage them to be loyal consumers. However, investor and stock analyst state that corporate social responsibility is a long term social investment that does not have a significant effect to the investment decision. In addition, most of the companies in the Indonesian consumer goods industry have a good financial performance, so that the stock prices remain constant.