role of corporate reputation in corporate social responsibility relations to firm performance in jambi province

Agus Solikhin, Tona Aurora Lubis, Ade Perdana Siregar

Abstract


The purpose of this study is to examine the role of corporate reputation in the relationship of Corporate Social Responsibility to firm performance. This research is basic research, to fill the research gap in the study of Corporate Social Responsibility and firm Performance. Corporate Social Responsibility is a corporate commitment to carry out its social responsibilities towards stakeholders. In fact, many companies have not been maximal in carrying out Corporate Social Responsibility programs, so the results have no impact on firm performance. This raises the question of what companies should consider so that the Corporate Social Responsibility program implemented so far can have an influence on improving firm performance. This research was conducted in four cities or regencies in Jambi Province in 2019, Jambi city, BatangHari regency, TanjungJabung Barat Regency and TanjungJabungTimur Regency. The number of respondents used was 55 firms representing companies in the Jambi Province. This study uses path analysis with the help of the SmartPLS version 3.0 program which is used to test hypotheses.The results of this study are that Corporate Social Responsibility has a significant positive effect on firm performance, Corporate Social Responsibility also has a significant positive effect on corporate reputation, corporate reputation has a significant positive effect on firm performance and ultimately corporate reputation is able to mediate in the relationship between Corporate Social Responsibility on firm performance.


Keywords


Corporate social responsibility; corporate reputation; firm performance

Full Text:

PDF

References


Arshad, Anees and Ullah. 2015. The Impact of Corporate Social Responsibility on Firm’s Financial Performance, International Journal of Linguistics,Social and Natural Sciences, 1(1): 33-39

Buciuniene and Kazlauskaite. 2011. The linkage between HRM, CSR and Performance Outcomes, Baltic Journal of Managment, 7(1):5-24

De Castro, G.M, Lopez J.E and Lopez Saez. 2006. Business and Social Reputation:Exploring the Concept and MainDimensions of Corporate Reputation, Journal of Business Ethics, 63: pp. 361–370

Famiyeh, S. 2017. Corporate Social Responsibility and Firm’s Performance: Empirical Evidence , SocialResponsibility Journal, Vol. 13 Iss 2

Ferdinand. 2011. Metode Penelitian Manajemen : Pedoman Penelitian Untuk Penulisan Skripsi, Tesis dan Disertasi Ilmu Manajemen, Edisi 3, Semarang : Badan Penerbit Universitas Diponegoro

Fombrun, C., Shanley. 1990. What is in a Name? Reputation Building and Corporate Strategy, Academy of Management Journal

Foster, D. and J. Jonker: 2005. Stakeholder Relationships: The Dialogue of Engagement, Corporate Governance , Vol. 5, pp.51–57

Freeman, R. Edward., 2004. A Stakeholder Theory of the Modern Corporation, Perspectives in Business Ethics, Singapore:McGraw Hill, hlm.171-181

Ghozali, Imam dan A. Chariri. 2007. Teori Akuntansi, Badan Penerbit Universitas Diponegoro Semarang

Handayani, Rini. 2016. Membangun Model Kemitraan Sosial Proaktif Dalam Meningkatkan Kinerja Perusahaan, Disertasi, Program Doktor Ilmu ekonomi, Undip

Husain. 2003. Metode Riset Bisnis, Jakarta : Gramedia Pustaka Utama

Jamali. D, 2008. A Stakeholder Approach to CorporateSocial Responsibility: A Fresh Perspectiveinto Theory and Practice, Journal of Business Ethics, Vol. 82, pp. 213–231

Jensen, M.C. 2001. Value Maximization, Stakeholder theory and the Corporate Objestive Function, European Financial Management, 7(3), pp.297-317

Katrinli and Gunay. 2011. Corporate Social responsibility, Strategy and Culture : Bati Anadolu Group Case, International Journal of Business Strategy, 11 (2), pp.32-38

Latan dan Ghozali. 2012. Partial Least Square : Konsep, Metode dan Aplikasi, Badan Penerbit Universitas Diponegoro.

Lee, Pati and Roh. 2011. Relationship between Corporate Sustainability Performance and Tang ible Business Performamce : evidence from oil and gas industry. IJBT 3 (3): 72-82

Maduenoa, jorgea, conesab and Martinez-Martinez. 2015. Relationship between Corporate Social Responsibility and Competitive Performance in Spanish SMEs: Empirical evidence from a stakegolders perspective: Bussiness Research Quarterly, 1-18

Malikeh., B and Azam K, 2013. Reputation: An Important Component of Corporations' Value, International Journal of Academic Research in Business and Social Sciences July 2013, Vol. 3, No. 7

Matiolanska. 2010. Social Responsibility Management in Polish Companies, Zagreb International Review of Economics & Business, Special Conference Issue, pp. 29-43

Mishra and Suar. 2010. Does Corporate Social Responsibility Influence Firm Performance of Indian Companies? Journal Of Business Ethics, 95: 571-601

Mujahid and Abdullah,2014. Impact of Corporate Social Responsibility on Firms FinancialPerformance and Shareholders wealth, European Journal of Business and Management,Vol.6, No.31

Mugisa. 2011. The Effect of Corporate Social Responsibility on Business Operation and Performance, Faculty of Business Administration and Management, Uganda Martyrs University.

Obtained &Ansong, 2017. Corporate social responsibility and firm performance of GhanaianSMEs: Mediating role of access to capital and firm reputation, Journal of Global Responsibility, Vol. 8 Iss 1

Okwemba, Chitiavi, Egessa, Douglas, and Musiega. 2014. Effct of Corporate Social Responsibility on Organisation Performance; Banking Industry Kenya, Kakamega Country, International Journal of Business and Management Invention, 3(4)

Olowokudejo, Aduloju and Oke. 2011. Corporate Social Responsibility and Environmental sustainability, Bussiness & Society, 50 (1) : 6-27

Palmer. 2012. Corporate Social Responsibility and Financial Performance : Does it Pay to Be Good?, Claremont McKenna College, Claremont, CA

Pranowo Budi, Suryono Agus, Siti Rochmah Siti , Kusuma Ratna Aji, 2013. Performing Corporate Social Responsibility of State Owned Enterprises: A Good Governance Perspective, Public Policy and Administration Research, Vol.3, No.9

Prieto and Revilla. 2006. Learning Capability and business performance : A non-financial and financial performance, The Learning Organization, 13 (2):166-185

Robert and Dowling. G, 2002. Corporate Reputation And Sustained Superior Financial Performance Strategic Management Journal Strat. Mgmt. J., 23: 1077–1093 (2002)

Robertson, Crittenden, Brady, and Hofman. 2002. Situational Ethics Across Borders: A Multicultural Examination, Journal of Business Ethics, 38 (4): 327-338

Surruca, Tribo and waddock. 2010. Corporate Responsibility and Financial Performance : The Role of Intangible Resources, Strategic Management Journal, 31:463-490


Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 PROCEEDING MICEB (Mulawarman International Conference On Economics and Business)

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.