Financial Literacy and Corporate Social Responsibility as Predictor to Sustainability of Smes

Financial behavior refers to the spending habit, maintaining records, using saving, managing money in a problem, financial services taken, planning of income and expenditure, searching for competitors’ prices, gathering of information on financial knowledge, and using additional income are major aspects of the financial behavior pillar.

The second independent variable is corporate social responsibility. Williams (2020, p. 56) with the indicators of community performance, workplace performance, and customer performance. Community performance was a measure of charitable activities in the local community. Workplace performance is a measure of a firm’s treatment of employees. Customer performance involves a measure of management perceptions of their firm’s customer complaint resolution efforts and its commitment to creating value for customers.

The dependent variable is sustainability of SMEs (Lopez-Perez, et al., 2018) with the following indicators: corporate reputation, brand image, and financial value. Corporate Reputation will provide a competitive advantage as it differentiates the firm from others. Brand Image contributes to trust relationships aligning companies and their stakeholders. Financial Value helps increase production efficiency, motivate and retain the company’s human resources, and facilitate access to better financial conditions.