Does ISO 26000 Corporate Social Responsibility Influence Company Performance?
Keywords:
Business Performance, Corporate Social Responsibility, ISO 26000
Abstract
The purpose of this study is to analyze the influence of implementation of ISO 26000 Corporate Social Responsibility (CSR) on Business performance of automotive industries located in West Java. Research respondents were staff and management of 5 automotive companies consist of 212 people and the method of data collection use electronic questionnaires by snowball sampling to all respondents. This study use a quantative method and analysis tools in this study is SEM (Structural Equation Model) with the LISREL program version 8.70. The results showed that the ISO 26000 Corporate Social Responsibility (CSR) had a posutive and significant effect on business performance This research novelty is essential as it outlines a strategic model that could be adapted and adopted by other industries in Indonesia or in other regions in improving their business performance by implement ISO 26000 Corporate Social Responsibility (CSR) in their companies.
References
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6) Galbreath, J. (2010), "How does corporate social responsibility benefit firms? Evidence from Australia", European Business Review, Vol. 22 No. 4, pp. 411-431. https://doi.org/10.1108/09555341011056186
7) Hossain, M., Alam, M., Hecimovic, A., Alamgir Hossain, M. and Choudhury Lema, A. (2016), "Contributing barriers to corporate social and environmental responsibility practices in a developing country: A stakeholder perspective", Sustainability Accounting, Management and Policy Journal, Vol. 7 No. 2, pp. 319-346. https://doi.org/10.1108/SAMPJ-09-2014-0056
8) Hossain, M., Alam, M., Islam, M. and Hecimovic, A. (2015), "Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country", Qualitative Research in Accounting & Management, Vol. 12 No. 3, pp. 287-314. https://doi.org/10.1108/QRAM-10-2014-0061
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10) Moratis, L. (2016), "Out of the ordinary? Appraising ISO 26000 ' s CSR definition", International Journal of Law and Management, Vol. 58 No. 1, pp. 26-47. https://doi.org/10.1108/IJLMA-12-2014-0064
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12) Paluri, R. and Mehra, S. (2018), "Influence of bank’s corporate social responsibility (CSR) initiatives on consumer attitude and satisfaction in India", Benchmarking: An International Journal, Vol. 25 No. 5, pp. 1429-1446. https://doi.org/10.1108/BIJ-01-2017-0010
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https://www.tandfonline.com/doi/full/10.1080/1331677X.2017.1313122
20) Sunrowiyati, Siti, et al, (2019), Financial Performance Mediating the Effect of Corporate Social Responsibility on Corporate Value LQ 45
https://ijasre.net/index.php/Home/abstractt?id=4119
21) Hersugondo, Siska dan Nofita Ana, Udin, (2019), Corporate Social Responsibility and Corporate Value: Evidence from an Emerging Economy, Indonesia
http://eprints.undip.ac.id/79249/1/QAS_Vol.20_No.172_Oct.2019-51-55.pdf
22) Dr. Yuvraj Dilip Patil, (2014), Corporate Social Responsibility Towards Environmental Management Mburugu, Charles, (2020), Obstacles to Corporate Social Responsibilityhttps://www.gaebler.com/Obstacles-to-Corporate-Social-Responsibility.htm
23) Purwanto, A. Sulistiyadi,A.Primahendra, R. Kotamena,F. Prameswari,M.Ong,F. (2020). Does Quality, Safety, Environment and Food Safety Management System Influence Business Performance? Answers from Indonesian Packaging Industries . International Journal of Control and Automation. 13(1). 22-35. http://sersc.org/journals/index.php/IJCA/article/view/4834
24) Purwanto, A. ,Putri,R.S,. Arman Hj. Ahmad , Asbari,M ., Bernarto,I., Santoso,P.B, Sihite,O.B.(2020). The Effect of Implementation Integrated Management System ISO 9001, ISO 14001, ISO 22000 and ISO 45001 on Indonesian Food Industries Performance . TEST Engineering & Management. 82.14054 – 14069. http://www.testmagzine.biz/index.php/testmagzine/article/view/3078
25) Hyun,C.C, Wijayanti,L.M., Asbari,M.,Purwanto,A. Santoso,P.B., IGAK Wardani, Bernarto,I., Pramono,R., (2020). Implementation of Contextual Teaching and Learning (CTL) to Improve the Concept and Practice of Love for Faith-Learning Integration, International Journal of Control and Automation.13(1).365-383. http://sersc.org/journals/index.php/IJCA/article/view/5737
26) Masduki Asbari , Laksmi Wijayanti , Choi Chi. Hyun , Agus Purwanto , Priyono Budi Santoso , Innocentius Bernarto , Rudy Pramono , Miyv Fayzhall. (2020). The Role of Knowledge Transfer and Organizational Learning toBuild Innovation Capability: Evidence from Indonesian Automotive Industry. International Journal of Control and Automation.13(1).19-322
27) Innocentius Bernarto, Diana Bachtiar, Niko Sudibjo, Ian Nurpatria Suryawan, Agus Purwanto, Masduki Asbari.(2020). Effect of Transformational Leadership, Perceived Organizational Support, Job Satisfaction Toward Life Satisfaction: Evidences from Indonesian Teachers. International Journal of Advanced Science and Technology.29(3). 5495 -5503
28) Asbari ,M.,Purwanto,A., Fayzhall,M., Winanti , Purnamasari ,D., Firdaus,A, .(2020).Hard Skills or Soft Skills: Which are More Important for Indonesian Teachers Innovation. TEST Engineering & Management.83(2020). 2836 – 2854. http://www.testmagzine.biz/index.php/testmagzine/article/view/4087
29) Asbari,M. Wijayanti,L.Hyun,C.C, Purwanto,A, Santoso,P.B.(2020). How to Build Innovation Capability in the RAC Industry to Face Industrial Revolution 4.0?, International Journal of Psychosocial Rehabilitation. 24(6). 2008-2027. DOI: 10.37200/IJPR/V24I6/PR260192
30) Pramono,R.Kristianti,T.,Purwanto, A. (2020).Character Development Training for Adults (A Case Study of Heartmaster Program in Jakarta). Test Engineering & Management. 83. 5809 -581. http://www.testmagzine.biz/index.php/testmagzine/article/view/4556
31) Andika Putra Wijaya, Innocentius Bernarto, Agus Purwanto. (2020). How to Achieve Value Creation in Digital World? The Influence of IT Response on Value Creation and Customer Satisfaction. International Journal of Advanced Science and Technology, 29(3), 6705 - 6715. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7322
32) Ronald Susilo, Innocentius Bernarto, Agus Purwanto. (2020). Effect of Trust, Value and Atmosphere towards Patient Satisfaction (Case Study on Preama Clay of Wae Laku, Indonesia). International Journal of Advanced Science and Technology, 29(3), 6716 - 6723. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7324
33) Masduki Asbari,Innocentius Bernarto,Rudy Pramono, Agus Purwanto, Dylmoon Hidayat, Ardian Sopa, Virza Utama Alamsyah, Pierre Senjaya, Miyv Fayzhall, Mustofa. (2020). The Effect of work-Family conflict on Job Satisfaction and Performance: A Study of Indonesian Female Employees . International Journal of Advanced Science and Technology, 29(3), 6724 - 6748. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7325
34) Mirza Prameswari, Masduki Asbari, Agus Purwanto, Freddy Ong, Sekundina Williana Kusumaningsih, Anggaripeni Mustikasiwi, Gusli Chidir, Winanti, Ardian Sopa. (2020). The Impacts of Leadership and Organizational Culture on Performance in Indonesian Public Health: The Mediating Effects of Innovative Work Behavior. International Journal of Control and Automation, 13(02), 216 - 227. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7630
35) Hermas Kornelius, Innocentius Bernarto, Anton Wachidin Widjaja, Agus Purwanto. (2020). Competitive Strategic Maneuverability: The Missing Link Between Strategic Planning and Firm’s Performance. International Journal of Advanced Science and Technology, 29(3), 7413 - 7422. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7612
36) Ardian Sopa, Masduki Asbari, Agus Purwanto, Priyono Budi Santoso, Mustofa, Dhaniel Hutagalung, Siti Maesaroh, Mohamad Ramdan, Riza Primahendra. (2020). Hard Skills versus Soft Skills: Which are More Important for Indonesian Employees Innovation Capability. International Journal of Control and Automation, 13(02), 156 - 175. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7626
37) Otto Berman Sihite, Agus Purwanto, Leo Hutagalung, Rosma Indriana Purba, Anggaripeni Mustikasiwi, Juliana Liem, Masduki Asbari. (2020). Interests and Obstacles to Publication of Articles in Reputable International Journals: Exploratory Studies of Doctoral Students at Private Universities in Jakarta. International Journal of Control and Automation, 13(02), 176 - 184. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7627
38) Priyono Budi Santoso, Masduki Asbari, Agus Purwanto, Laksmi Mayesti Wijayanti, Choi, Chi Hyun, Siti Maesaroh, Miyv Fayzhall, Gusli Chidir, Mustofa, Dhaniel Hutagalung, Ahmad Yani. (2020). Working While Studying at University in the Self-Management Perspective: An Ethnographic Study on Java Ethnic Employees. International Journal of Control and Automation, 13(02), 299 - 308. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/8098
39) Purwanto, A. (2020). Design of Food Product Using Quality Function Deployment in Food Industry. Journal of Industrial Engineering & Management Research, 1(1), 1-16. https://doi.org/10.7777/jiemar.v1i1.20
40) Kartika, H., & Setia Bakti, C. (2020). Analysis of 6004-2RSL SKF Bearing Inventory By Economic Order Quantity (EOQ) Method in Spart Part Division. Journal of Industrial Engineering & Management Research, 1(1), 17-27. https://doi.org/10.7777/jiemar.v1i1.19
41) Suwandi, S., & Hari Hadi, A. (2020). Value Analysis Method For Cost Reduction Analysis of Fuel Filter Poducts at PT Duta Nichirindo Pratama. Journal of Industrial Engineering & Management Research, 1(1), 28-36. https://doi.org/10.7777/jiemar.v1i1.22
42) Prayuda, R. Z. (2020). Continuous Improvement Through Kaizen In An Automotive Industry. Journal of Industrial Engineering & Management Research, 1(1), 37-42. https://doi.org/10.7777/jiemar.v1i1.24
43) Setia Bakti, C., & Kartika, H. (2020). Analysis of Ice Cream Product Quality Control With Six Sigma Method. Journal of Industrial Engineering & Management Research, 1(1), 63-69. https://doi.org/10.7777/jiemar.v1i1.29
2) Anedeye, Yusuf Babatinde, (2015), Corporate Social Responsibility and Company Performance (2015) https://pdfs.semanticscholar.org/7090/2e884fa9392526f465530e070e468e06d7ad.pdf
3) Bevan, E. and Yung, P. (2015), "Implementation of corporate social responsibility in Australian construction SMEs", Engineering, Construction and Architectural Management, Vol. 22 No. 3, pp. 295-311. https://doi.org/10.1108/ECAM-05-2014-0071
4) Chakroun, S., Salhi, B., Ben Amar, A. and Jarboui, A. (2019), "The impact of ISO 26000 social responsibility standard adoption on firm financial performance: Evidence from France", Management Research Review, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/MRR-02-2019-0054
5) Closon, C., Leys, C. and Hellemans, C. (2015), "Perceptions of corporate social responsibility, organizational commitment and job satisfaction", Management Research, Vol. 13 No. 1, pp. 31-54. https://doi.org/10.1108/MRJIAM-09-2014-0565
6) Galbreath, J. (2010), "How does corporate social responsibility benefit firms? Evidence from Australia", European Business Review, Vol. 22 No. 4, pp. 411-431. https://doi.org/10.1108/09555341011056186
7) Hossain, M., Alam, M., Hecimovic, A., Alamgir Hossain, M. and Choudhury Lema, A. (2016), "Contributing barriers to corporate social and environmental responsibility practices in a developing country: A stakeholder perspective", Sustainability Accounting, Management and Policy Journal, Vol. 7 No. 2, pp. 319-346. https://doi.org/10.1108/SAMPJ-09-2014-0056
8) Hossain, M., Alam, M., Islam, M. and Hecimovic, A. (2015), "Do stakeholders or social obligations drive corporate social and environmental responsibility reporting? Managerial views from a developing country", Qualitative Research in Accounting & Management, Vol. 12 No. 3, pp. 287-314. https://doi.org/10.1108/QRAM-10-2014-0061
9) Lee, K. and Kim, J. (2009), "Current status of CSR in the realm of supply management: the case of the Korean electronics industry", Supply Chain Management, Vol. 14 No. 2, pp. 138-148. https://doi.org/10.1108/13598540910942000
10) Moratis, L. (2016), "Out of the ordinary? Appraising ISO 26000 ' s CSR definition", International Journal of Law and Management, Vol. 58 No. 1, pp. 26-47. https://doi.org/10.1108/IJLMA-12-2014-0064
11) Mohd Fuzi, N., Habidin, N., Hibadullah, S. and Ong, S. (2017), "CSR practices, ISO 26000 and performance among Malaysian automotive suppliers", Social Responsibility Journal, Vol. 13 No. 1, pp. 203-220. https://doi.org/10.1108/SRJ-09-2015-0136
12) Paluri, R. and Mehra, S. (2018), "Influence of bank’s corporate social responsibility (CSR) initiatives on consumer attitude and satisfaction in India", Benchmarking: An International Journal, Vol. 25 No. 5, pp. 1429-1446. https://doi.org/10.1108/BIJ-01-2017-0010
13) Kotler, Philip Kotler & Lee, Nancy, (2004), Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause
14) https://www.wiley.com/
15) Korngold, Alice, (2014), Better World inc Companies Profit Solving Global Problemshttps://www.goodreads.com/book/show/18360302-a-better-world-inc
16) Valmohammadi, C. (2014), "Impact of corporate social responsibility practices on organizational performance: an ISO 26000 perspective", Social Responsibility Journal, Vol. 10 No. 3, pp. 455-479. https://doi.org/10.1108/SRJ-02-2013-0021
17) Walker, K., Zhang, Z. and Yu, B. (2016), "The angel-halo effect: How increases in corporate social responsibility and irresponsibility relate to firm performance", European Business Review, Vol. 28 No. 6, pp. 709-722. https://doi.org/10.1108/EBR-11-2015-0139
18) Marthin, Marthen B. dan Salinding, Inggit Akim, (2017), Implementasi Prinsip Corporate Social Responsibility (CSR) Berdasarkan Undang Undang No. 40 Tahun 2007 tentang Perseroan Terbatas http://jurnal.unpad.ac.id/share/article/view/13045
19) Galant, Andriana & Cadez, Simon, (2017), Corporate social responsibility and financial performance relationship: a review of measurement approaches
https://www.tandfonline.com/doi/full/10.1080/1331677X.2017.1313122
20) Sunrowiyati, Siti, et al, (2019), Financial Performance Mediating the Effect of Corporate Social Responsibility on Corporate Value LQ 45
https://ijasre.net/index.php/Home/abstractt?id=4119
21) Hersugondo, Siska dan Nofita Ana, Udin, (2019), Corporate Social Responsibility and Corporate Value: Evidence from an Emerging Economy, Indonesia
http://eprints.undip.ac.id/79249/1/QAS_Vol.20_No.172_Oct.2019-51-55.pdf
22) Dr. Yuvraj Dilip Patil, (2014), Corporate Social Responsibility Towards Environmental Management Mburugu, Charles, (2020), Obstacles to Corporate Social Responsibilityhttps://www.gaebler.com/Obstacles-to-Corporate-Social-Responsibility.htm
23) Purwanto, A. Sulistiyadi,A.Primahendra, R. Kotamena,F. Prameswari,M.Ong,F. (2020). Does Quality, Safety, Environment and Food Safety Management System Influence Business Performance? Answers from Indonesian Packaging Industries . International Journal of Control and Automation. 13(1). 22-35. http://sersc.org/journals/index.php/IJCA/article/view/4834
24) Purwanto, A. ,Putri,R.S,. Arman Hj. Ahmad , Asbari,M ., Bernarto,I., Santoso,P.B, Sihite,O.B.(2020). The Effect of Implementation Integrated Management System ISO 9001, ISO 14001, ISO 22000 and ISO 45001 on Indonesian Food Industries Performance . TEST Engineering & Management. 82.14054 – 14069. http://www.testmagzine.biz/index.php/testmagzine/article/view/3078
25) Hyun,C.C, Wijayanti,L.M., Asbari,M.,Purwanto,A. Santoso,P.B., IGAK Wardani, Bernarto,I., Pramono,R., (2020). Implementation of Contextual Teaching and Learning (CTL) to Improve the Concept and Practice of Love for Faith-Learning Integration, International Journal of Control and Automation.13(1).365-383. http://sersc.org/journals/index.php/IJCA/article/view/5737
26) Masduki Asbari , Laksmi Wijayanti , Choi Chi. Hyun , Agus Purwanto , Priyono Budi Santoso , Innocentius Bernarto , Rudy Pramono , Miyv Fayzhall. (2020). The Role of Knowledge Transfer and Organizational Learning toBuild Innovation Capability: Evidence from Indonesian Automotive Industry. International Journal of Control and Automation.13(1).19-322
27) Innocentius Bernarto, Diana Bachtiar, Niko Sudibjo, Ian Nurpatria Suryawan, Agus Purwanto, Masduki Asbari.(2020). Effect of Transformational Leadership, Perceived Organizational Support, Job Satisfaction Toward Life Satisfaction: Evidences from Indonesian Teachers. International Journal of Advanced Science and Technology.29(3). 5495 -5503
28) Asbari ,M.,Purwanto,A., Fayzhall,M., Winanti , Purnamasari ,D., Firdaus,A, .(2020).Hard Skills or Soft Skills: Which are More Important for Indonesian Teachers Innovation. TEST Engineering & Management.83(2020). 2836 – 2854. http://www.testmagzine.biz/index.php/testmagzine/article/view/4087
29) Asbari,M. Wijayanti,L.Hyun,C.C, Purwanto,A, Santoso,P.B.(2020). How to Build Innovation Capability in the RAC Industry to Face Industrial Revolution 4.0?, International Journal of Psychosocial Rehabilitation. 24(6). 2008-2027. DOI: 10.37200/IJPR/V24I6/PR260192
30) Pramono,R.Kristianti,T.,Purwanto, A. (2020).Character Development Training for Adults (A Case Study of Heartmaster Program in Jakarta). Test Engineering & Management. 83. 5809 -581. http://www.testmagzine.biz/index.php/testmagzine/article/view/4556
31) Andika Putra Wijaya, Innocentius Bernarto, Agus Purwanto. (2020). How to Achieve Value Creation in Digital World? The Influence of IT Response on Value Creation and Customer Satisfaction. International Journal of Advanced Science and Technology, 29(3), 6705 - 6715. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7322
32) Ronald Susilo, Innocentius Bernarto, Agus Purwanto. (2020). Effect of Trust, Value and Atmosphere towards Patient Satisfaction (Case Study on Preama Clay of Wae Laku, Indonesia). International Journal of Advanced Science and Technology, 29(3), 6716 - 6723. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7324
33) Masduki Asbari,Innocentius Bernarto,Rudy Pramono, Agus Purwanto, Dylmoon Hidayat, Ardian Sopa, Virza Utama Alamsyah, Pierre Senjaya, Miyv Fayzhall, Mustofa. (2020). The Effect of work-Family conflict on Job Satisfaction and Performance: A Study of Indonesian Female Employees . International Journal of Advanced Science and Technology, 29(3), 6724 - 6748. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7325
34) Mirza Prameswari, Masduki Asbari, Agus Purwanto, Freddy Ong, Sekundina Williana Kusumaningsih, Anggaripeni Mustikasiwi, Gusli Chidir, Winanti, Ardian Sopa. (2020). The Impacts of Leadership and Organizational Culture on Performance in Indonesian Public Health: The Mediating Effects of Innovative Work Behavior. International Journal of Control and Automation, 13(02), 216 - 227. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7630
35) Hermas Kornelius, Innocentius Bernarto, Anton Wachidin Widjaja, Agus Purwanto. (2020). Competitive Strategic Maneuverability: The Missing Link Between Strategic Planning and Firm’s Performance. International Journal of Advanced Science and Technology, 29(3), 7413 - 7422. Retrieved from http://sersc.org/journals/index.php/IJAST/article/view/7612
36) Ardian Sopa, Masduki Asbari, Agus Purwanto, Priyono Budi Santoso, Mustofa, Dhaniel Hutagalung, Siti Maesaroh, Mohamad Ramdan, Riza Primahendra. (2020). Hard Skills versus Soft Skills: Which are More Important for Indonesian Employees Innovation Capability. International Journal of Control and Automation, 13(02), 156 - 175. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7626
37) Otto Berman Sihite, Agus Purwanto, Leo Hutagalung, Rosma Indriana Purba, Anggaripeni Mustikasiwi, Juliana Liem, Masduki Asbari. (2020). Interests and Obstacles to Publication of Articles in Reputable International Journals: Exploratory Studies of Doctoral Students at Private Universities in Jakarta. International Journal of Control and Automation, 13(02), 176 - 184. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/7627
38) Priyono Budi Santoso, Masduki Asbari, Agus Purwanto, Laksmi Mayesti Wijayanti, Choi, Chi Hyun, Siti Maesaroh, Miyv Fayzhall, Gusli Chidir, Mustofa, Dhaniel Hutagalung, Ahmad Yani. (2020). Working While Studying at University in the Self-Management Perspective: An Ethnographic Study on Java Ethnic Employees. International Journal of Control and Automation, 13(02), 299 - 308. Retrieved from http://sersc.org/journals/index.php/IJCA/article/view/8098
39) Purwanto, A. (2020). Design of Food Product Using Quality Function Deployment in Food Industry. Journal of Industrial Engineering & Management Research, 1(1), 1-16. https://doi.org/10.7777/jiemar.v1i1.20
40) Kartika, H., & Setia Bakti, C. (2020). Analysis of 6004-2RSL SKF Bearing Inventory By Economic Order Quantity (EOQ) Method in Spart Part Division. Journal of Industrial Engineering & Management Research, 1(1), 17-27. https://doi.org/10.7777/jiemar.v1i1.19
41) Suwandi, S., & Hari Hadi, A. (2020). Value Analysis Method For Cost Reduction Analysis of Fuel Filter Poducts at PT Duta Nichirindo Pratama. Journal of Industrial Engineering & Management Research, 1(1), 28-36. https://doi.org/10.7777/jiemar.v1i1.22
42) Prayuda, R. Z. (2020). Continuous Improvement Through Kaizen In An Automotive Industry. Journal of Industrial Engineering & Management Research, 1(1), 37-42. https://doi.org/10.7777/jiemar.v1i1.24
43) Setia Bakti, C., & Kartika, H. (2020). Analysis of Ice Cream Product Quality Control With Six Sigma Method. Journal of Industrial Engineering & Management Research, 1(1), 63-69. https://doi.org/10.7777/jiemar.v1i1.29
Published
2020-07-03
How to Cite
Prayuda, R. Z., & Praditya, R. A. (2020). Does ISO 26000 Corporate Social Responsibility Influence Company Performance? . Journal of Industrial Engineering & Management Research, 1(1b), 83-94. https://doi.org/10.7777/jiemar.v1i1.30
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Articles
