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

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.