The Implications of Corporate Social Responsibility and Firm Performance with Reputation as Intervening Variable: Empirical Study in the Manufacturing Company in Indonesia

DOI: 10.5176/2010-4804_2.4.257

Authors: Agus Ismaya Hasanudin and Roni Budianto

Abstract:

In this research, the researcher explore the following question. Can implementation of environmental CSR and employee CSR effect to corporate reputation and respectively lead to its firm performance? This study discusses CSR from CSR managers’ and/or PR managers’ viewpoints by taking the sample of manufacture industrial which located in Indonesia.

The aims of this study are to investigate: first, the effects each of CSR dimension on corporate reputation; second, the effects of corporate reputation on firm performance; and third, the intervening effects of each CSR dimension on firm performance. Empirical results support the study’s hypotheses and indicate that employee CSR and corporate reputation have positive effects on firm performance, but environmental CSR have negative effect. In addition, corporate reputation partially mediate the relationship environmental CSR, employee CSR with firm performance.

This research was carried out to 53 manufacturing companies in Indonesia, with the object of the research was the CSR and PR managers. This research used the method of the survey research with the primary data collection that used the questionnaire. The sample selection that was tested in this research used the method purposive sampling, was chosen by 31 respondents as the sample of the research. The testing of the research hypothesis used Structural Equation Model (SEM) with the program smart PLS (Smart Partial Least Square) 2.0.

Keywords: Environmental CSR Implementation, corporate reputation and firm performance