Corporate Ethics and Corporate Social Responsibility in Reinforcing Consumers Bonding

2018 ◽  
pp. 1042-1059
Author(s):  
Ari Setiyaningrum ◽  
Vincent Didiek Wiet Aryanto

Corporate ethics (CE) and corporate social responsibility (CSR) have been considered as the main determinants of companies' success as well as sustainability for company's viability. Both of them potentially affects on consumer buying behavior. This study aims at exploring the basic issue on CE and CSR. In addition, this study examines whether good corporate ethics and CSR engagement of companies always lead to positive consumer response in the context of controversial tobacco's company. Data collected by distributing questionnaires to the 318 respondents. By means of structural equation modeling (SEM) to examine the proposed model, it indicated that the more well-defined of corporate ethics lead to the better evaluation of CSR activities, the more well-defined of corporate ethics and the better evaluation of CSR activities lead to the good corporate reputation. In addition, the good corporate reputation leads to the higher corporate trust, and the higher corporate trust lead to the stronger consumers bonding.

Author(s):  
Ari Setiyaningrum ◽  
Vincent Didiek Wiet Aryanto

Corporate ethics (CE) and corporate social responsibility (CSR) have been considered as the main determinants of companies' success as well as sustainability for company's viability. Both of them potentially affects on consumer buying behavior. This study aims at exploring the basic issue on CE and CSR. In addition, this study examines whether good corporate ethics and CSR engagement of companies always lead to positive consumer response in the context of controversial tobacco's company. Data collected by distributing questionnaires to the 318 respondents. By means of structural equation modeling (SEM) to examine the proposed model, it indicated that the more well-defined of corporate ethics lead to the better evaluation of CSR activities, the more well-defined of corporate ethics and the better evaluation of CSR activities lead to the good corporate reputation. In addition, the good corporate reputation leads to the higher corporate trust, and the higher corporate trust lead to the stronger consumers bonding.


2016 ◽  
Vol 7 (1) ◽  
pp. 1-15
Author(s):  
Ari Setiyaningrum ◽  
Vincent Didiek Wiet Aryanto

Corporate ethics (CE) and corporate social responsibility (CSR) have been considered as the main determinants of companies' success as well as sustainability for company's viability. Both of them potentially affects on consumer buying behavior. This study aims at exploring the basic issue on CE and CSR. In addition, this study examines whether good corporate ethics and CSR engagement of companies always lead to positive consumer response in the context of controversial tobacco's company. Data collected by distributing questionnaires to the 318 respondents. By means of structural equation modeling (SEM) to examine the proposed model, it indicated that the more well-defined of corporate ethics lead to the better evaluation of CSR activities, the more well-defined of corporate ethics and the better evaluation of CSR activities lead to the good corporate reputation. In addition, the good corporate reputation leads to the higher corporate trust, and the higher corporate trust lead to the stronger consumers bonding.


2019 ◽  
Vol 15 (1) ◽  
pp. 95-111
Author(s):  
Ammar Ahmad ◽  

This empirical study was aimed to discover the impact of corporate social responsibility (CSR) and international standardization of organization (ISO) on corporate reputation (CR) and corporate reputation’s effect on consumer loyalty (CL). In addition, the relationship of corporate reputation & trust (T), corporate reputation with consumer company identification (CCI) was also examined. Lastly the association of consumer company identification, trust and consumer loyalty (CL) was also analyzed. The data was collected from 500 students of three different universities and survey instrument was administrated. Overall, eight hypotheses were examined to confirm the relationship among variables by using the CFA (Confirmatory Factor Analysis) and structural equation modeling (SEM) was used to test the validity of the instrument with the help of AMOS and SPSS software. The result indicated that ISO and environmental CSR has direct relationship with corporate reputation. Corporate reputation had direct association with trust. Whereas, corporate reputation was significantly positive related with consumer company identification. Subsequently, Trust also showed positive relation with loyalty and positive relationship was found between consumer company identification and consumer loyalty. Furthermore, results showed that community development- corporate social responsibility had no relationship with corporate reputation and corporate reputation was significantly related with customer loyalty. The findings of this study contribute in the literature provided instrument authenticity and adaptability in Pakistani context. In this study limitations and future recommendations were also provided.


2015 ◽  
Vol 11 (2) ◽  
pp. 340-363 ◽  
Author(s):  
Mehdi Taghian ◽  
Clare D’Souza ◽  
Michael Polonsky

Purpose – This paper aims to investigate business managers’ assessment of stakeholders’ influence on corporate social responsibility (CSR) initiatives. The key stakeholders included “employees” and “unions” as internal and “public”, the “media” and the “government” as external stakeholders. The purpose was to estimate the influence of stakeholders that managers perceive as important. Moreover, the study sought to identify association between the CSR construct and corporate reputation and in turn whether this influences business performance. Design/methodology/approach – This study uses a mail survey with a random sampling of senior managers sourced from Dun & Bradstreet’s Australian business database, focusing on large organizations (i.e. minimum $10 million p.a. reported sales and minimum 100 employees) as the selection criteria. A conceptual model was developed and tested using structural equation modeling. Findings – The results identified that “employees” and the “public” are perceived to be the influential stakeholder groups in CSR decision-making. There was evidence of a positive relationship between the CSR construct and reputation, which in turn influenced market share, but not profitability. Research limitations/implications – This study examined a cross-section of organizations using Dun & Bradstreet’s database of Australian businesses and may not fully represent the Australian business mix. The effective response rate of 7.2 per cent appears to be low, even though it is comparable with other research in the CSR area. There may have been some self-selection by the respondents, although there were no statistically significant differences identified in the corporate characteristics of those invited to participate and those responding with usable questionnaires. Practical implications – Managers can adopt a stakeholder-influenced CSR strategy to generate strong corporate reputation to improve business performance. It is important to ensure that the interests of “employees” and “public” stakeholders are addressed within organizational strategy. Respondents were less concerned about government stakeholders and thus government involvement in organizational CSR may need to be revisited. Social implications – The major concern that emerges from these findings is the absence of the perceived importance of regulatory stakeholders on firms’ CSR activities. Regulatory controls of CSR messages could reduce or eliminate inaccurate and misleading information to the public. Originality/value – The analysis explains the perceived relative influence of stakeholders on CSR decisions. It also provides an understanding of the link between organizational CSR reputation and organization’s performance.


2015 ◽  
Vol 12 (2) ◽  
Author(s):  
Ari Setiyaningrum

This research explores the basic issue about whether the good corporate ethics statementsand corporate social responsibility (CSR) can create positive consumer responses on thecompany and its products. We examined the proposed model that links corporate ethics,CSR, corporate reputation, and perceived risk in the case of controversial products thatoffers by company, especially on cigarette products. As one of the doers in Indonesiantobacco industry, PT. Djarum implemented many CSR programs including educationalinitiatives. This research was conducted in the Faculty of Economics and BusinessDiponegoro University as a recipient of PT. Djarum, that implemented CSR educationalinitiative through “Bakti Pada Negeri” program.Research was conducted using a surveymethod through distributing questionnaires to209 university students of Faculty ofEconomics and Business Diponegoro University. The sampling method which was usedfor this research was a non-probability sampling with convenience sampling technique. Byusing the structural equations model with AMOS software to examine the proposed model,this research indicated that the more well-defined of corporate ethics statements lead tobetter evaluation of CSR activities;the better evaluation of CSR activities lead to goodcorporate reputation, but did not lead to lower perceived risk; the good corporate reputationlead to lower perceived risk; and the more well-defined of corporate ethics statements didnot lead to lower perceived risk. Based on Sobel test results, this research indicated thatperceived CSR has a significant role in enhancing corporate reputation which in turnreducing perceived risk.Penelitian ini menginvestigasi isu mendasar mengenai apakah pernyataan etika perusahaanyang terumuskan secara baik dan tanggung jawab sosial perusahaan dapat menciptakanrespon konsumen yang positif pada perusahaan dan produk yang ditawarkannya. Penelitimenguji model yang mengkaitkan antara etika perusahaan, tanggung jawab sosialperusahaan, reputasi perusahaan, dan resiko yang dirasakan pada konteks produkkontroversial yang ditawarkan oleh perusahaan, khususnya pada konteks produk rokok.Sebagai salah satu pemain di industri rokok di Indonesia, PT. Djarum menerapkan programtanggung jawab sosial perusahaan di berbagai bidang termasuk di bidang pendidikan.Penelitian ini dilakukan di Fakultas Ekonomika dan Bisnis Universitas Diponegoro (FEBUNDIP) yang merupakan salah satu Universitas dimana PT. Djarum menerapkan programtanggung jawab sosial perusahaan di bidang pendidikan melalui program Bakti PadaNegeri. Penelitian dilakukan dengan metode survei melalui pendistribusian kuesioner pada209 mahasiswa FEB UNDIP. Metode pengambilan sampel yang digunakan dalampenelitian ini adalah non probability sampling dengan teknik convenience sampling.Dengan menggunakan model persamaan struktural dengan program AMOS, penelitian inimenemukan bahwa pernyataan etika perusahaan yang terumuskan secara baik dapatmenciptakan evaluasi konsumen mengenai aktivitas tanggung jawab sosial perusahaan yang lebih baik; evaluasi konsumen mengenai aktivitas tanggung jawab sosial perusahaanyang lebih baik dapat mendorong pada peningkatan reputasi perusahaan, namun tidakmendorong pada penurunan resiko yang dirasakan; reputasi perusahaan yang bagus dapatmendorong penurunan resiko yang dirasakan; dan pernyataan etika perusahaan yangterumuskan secara baik tidak mendorong pada penurunan resiko yang dirasakan.Berdasarkan hasil pengujian Sobel test, penelitian ini menemukan bahwa tanggung jawabsosial perusahaan berperan penting dalam meningkatkan reputasi perusahaan yang padaakhirnya dapat menurunkan resiko yang dirasakan.


2022 ◽  
Vol 5 (2) ◽  
pp. 110-128
Author(s):  
Jawad Farisi ◽  
Gancar Candra Premananto

At the end of 2019, a global pandemic began to hit the whole world, including Indonesia. This seems to have influenced the consumer confidence index. Consumer confidence in current economic conditions has weakened due to weakening incomes and reduced job availability. The existence of problems related to the decrease in the level of consumer confidence will be very detrimental to the company if the solution is not immediately considered. The purpose of this study was to examine and analyze the effect of corporate social responsibility on corporate reputation, word of mouth and customer trust as well as the effect of corporate reputation and word of mouth on customer trust. This research applies a quantitative approach with the type of research applied is causal research. The population in this study were 344 consumers of PT Petrokimia Gresik (PG), while the sample used in the study was 185 people.Data analysis in this study uses inferential statistics, which is an analysis aimed at proving the hypothesis using structural equation modeling - AMOS. The results of this study found that corporate social responsibilityprovides a significant effect on corporate reputation, word of mouth and consumer trust. Then corporate reputation and word of mouth are also proven to have a significant effect on consumer trust.


2021 ◽  
Vol 12 ◽  
Author(s):  
Yan Zhao ◽  
Manzir Abbas ◽  
Madeeha Samma ◽  
Tarik Ozkut ◽  
Mubbasher Munir ◽  
...  

The purpose of this study is to investigate the relationship between corporate social responsibility (CSR), corporate reputation (CR), and brand equity (BE). Building on the resource-based theory of the firm, this study proposes a theoretical framework. In this framework, CSR is theorized to strengthen CR and brand equity, directly and indirectly, through consumer trust. We used a questionnaire survey approach. In the questionnaire, 17 items were used with a 5-point Likert-Scale (1 stands for “strongly disagree,” and 5 stands for “strongly agree”). Data were collected from the consumers of the banking sector in the vicinity of Lahore, Pakistan. To estimate the proposed relationships in the conceptual model, we use structural equation modeling (SEM) through Smart PLS 3.2. The outcomes of this study confirm that CSR significantly impacts CR and brand equity. It is also demonstrated that trust mediates positively and significantly in the relationship between CSR, CR, and BE. Results of the present study have several implications for the senior management, marketing expert, administrators, and policymakers. This study expresses how CSR boosts BE and CR. Moreover, this study also indicates that trust is an important factor that enhances BE and CR.


2021 ◽  
Vol 13 (8) ◽  
pp. 4548
Author(s):  
Qingyu Zhang ◽  
Sohail Ahmad

Corporate social responsibility (CSR) in management domains is a well-known concept that links corporate interests and environmental/community values. CSR is considered a strategic policy that offers environmental and social competitive advantages. Organizations consider that CSR-based goodwill provides a tactical competitive edge and sustainable growth. The goal of this paper is to show how CSR programs affect consumers’ purchasing intention in the context of Pakistan. In addition, the effect of customer awareness has been studied as a moderator between CSR and purchasing intention. To this end, the study has conducted a survey and gathered Pakistani customers’ responses, and structural equation modeling has been used to evaluate the results. The study concludes that CSR activities favorably affect customer purchasing intentions directly as well as indirectly through improving brand image and trust, and customer awareness of CSR activities plays a moderating role. The implications and future research directions are discussed.


2018 ◽  
Vol 13 (6) ◽  
pp. 255 ◽  
Author(s):  
Peter K. Turyakira

Businesses are increasingly required to address the demands of key stakeholders, in addition to those of shareholders. There is an increasing role of corporate social responsibility (CSR) to large businesses and small and medium enterprises (SMEs) alike. However, research to support the degree of the application of CSR activities to SMEs with respect to customer loyalty is limited. The purpose of this study was to examine the selected CSR activities that impact the customer loyalty of SMEs. A self-administered questionnaire was distributed to selected SMEs in Kampala District, while Structural Equation Modeling was utilised to determine the influence of independent variables on the dependent variable. The study findings revealed that the selected CSR activities (Society-oriented CSR activities, Market-oriented CSR activities and Environmental-oriented CSR activities) positively influence the Customer loyalty of SMEs.


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