scholarly journals The Influence of Corporate Social Responsibility towards the Development of the Rural Communities: Case Studies in North Sumatera, Republic of Indonesia

2015 ◽  
Vol 2 (2) ◽  
pp. 12
Author(s):  
Muhammad Abdul Ghani ◽  
Sirojuzilam Sirojuzilam ◽  
Badaruddin Badaruddin ◽  
Rujiman Rujiman

<p>Corporate Social Responsibility (CSR) has strategic goals to maintain a harmonious relationship and contribute to socio-economic impacts on the surrounding communities. Therefore, CSR could be seen as a part of planning and development program in the particular area. This study focuses on oil palm plantation companies. This study aims to (1) analyze and assess the effect of CSR program in the development of rural areas around the estate by using indicators of socio-economic impact; (2) Analyze and assess the effect of intervening variables Integrated CSR Implementation to the socio-economic impact on local communities; (3) Analyze and assess the effect of CSR on the social impact of surrounding communities; (4) Analyze and assess the effect of CSR on the economic impact of surrounding communities; (5) Based on point 1 to 4, it could be shaped the Strategic Model of Integrated CSR Program. This research conducted in PTPN IV Pabatu Estate, District of Serdang Bedagai, North Sumatera, Indonesia. The selection method uses multistage random sampling technique. Total sample is 367 respondents, by using analytical methods Structural Equation Modeling (SEM).</p><p>There is a Causal Relationship between the Input of CSR and an Integrated CSR Implementation, this is indicated by CSR Input (X) is significant and has positive impacts on the implementation of Integrated CSR (Y). The direct effect of the application of CSR (X) on the Implementation of Integrated CSR (Y) is 0.988. It means whenever there is an increase in the performance of the application of CSR (X) it will improve the implementation of Integrated CSR (Y) which is equal to 0.988 units. The results show that the model-based of Intervening Integrated CSR provides a significant and positive effect on socio-economic aspects thus The Strategic Program of Integrated CSR Model is very appropriate to be applied in the realization of an integrated and sustainable palm oil industry.</p>

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 ◽  
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.


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.


2019 ◽  
Vol 1 (26) ◽  
pp. 22-30
Author(s):  
Hung Thanh Nguyen ◽  
Dung My Ho ◽  
Phuc Thi Hong Nguyen

This research aims at identifying impact of CSR on dimensions of job satisfaction and organizational commitment. The sample size of 422 was collected from staffs and managers. The analytical method of Structural Equation Modeling,(SEM) was used in this research. The results of the study showed that four factors of CSR including employee, customer, environment, and legality positively influenced job satisfaction and organizational commitment.


2019 ◽  
Author(s):  
Paula Regina Back

This paper aims to show that the strategic incorporation of socially responsible actions, in small and medium enterprises contribute to improving the competitiveness of those organizations. The analysis is from a multi-stakeholder perspective. It investigates the link among firms’ relationship with key stakeholders with the objective to find out if there is a competitive advantage in applying Corporate Social Responsibilities practices. Besides the direct influence of Corporate Social Responsibility practices on competitive performance, the mediating connection of relationship improvements has been analyzed. By using their influence, stakeholders hold the key to the environment in which the organization operates and its subsequent financial performance. The empirical analysis was constructed on survey data through structural equation modeling (SEM). To accomplish this assignment data were collected from a sample of Brazilian SMEs. Participants were firms from the Southern region of Brazil mainly from the State of Rio Grande do Sul, Santa Catarina, and Parana. The outcome shows that there is a strong connection between the development of Social Responsibilities practices and relational improvements. In addition, the significant relationship in developing Social Responsibilities Practices positively translates, with a high accuracy outcome into competitive performances.


2019 ◽  
Vol 7 (1) ◽  
pp. 26-40
Author(s):  
Wahyu Irawaty ◽  
Dianne Frisko

One of the activities that company should do to maintain its sustainability nowadays is concern about society and environment by doing corporate social responsibility (CSR) activities. By doing CSR, company has shown their responsibility to all stakeholders aligned with the willingness to create sustainability development.  Company could use varied tools to asses their CSR activities in order to evaluate their CSR implementation. This research is aimed to analyze cost and benefit of one CSR progame of PT. ISM Tbk Bogasari Flour Mills, by using Socio-Economic Impact to evaluate its progamme.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.


2019 ◽  
Vol 29 (4) ◽  
pp. 431-439
Author(s):  
Dana E. Harrison ◽  
O.C. Ferrell ◽  
Linda Ferrell ◽  
Joe F. Hair, Jr

Purpose The purpose of this paper is to theoretically develop and empirically validate separate scales that represent a consumer’s expectations of business ethics (BE) and corporate social responsibility (CSR). Design/methodology/approach A literature review and qualitative research were conducted to generate items for the scales. Initial item reduction was performed qualitatively based on a panel of experts. A follow-up quantitative assessment using an exploratory factor analysis further reduced the items. The scales were then validated using confirmatory composite analysis with partial least squares-structural equation modeling. Findings Separate scales representing consumers’ expectations of BE and CSR behaviors were developed. The scales exhibited reliability, convergent validity, discriminant validity and external validity. Practical implications The separation of these scales into two components will facilitate more precise examination of consumer perceptions of these two components of product and brand images, and how they may impact brand attitudes and brand trust. Originality/value This is the first effort to develop separate scales for consumer expectations of ethics and CSR, and assess their impact on brand outcomes.


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