CSR and Firm Reputation from Employee Perspective

Abstract

This research focuses on the importance of corporate social responsibility in building the company's reputation. Experts have studied CSR as an antecedent of a company's reputation, but the mechanisms underlying this process are rarely explored. Therefore, to fill this research gap, we demonstrate CSR's implementation combined with organizational justice based on discrepancy and equity theory. This study involved 210 employees in a family company. The study's analysis method uses Structural Equation Model (SEM), SmartPLS, with a five-step measurement and analysis procedure. The variables in this study are CSR implementation, organizational justice, employee trust, firm reputation, organizational objectiveness, organizational commitment, job satisfaction, and job performance. The results found that some of the direct relationships stated were not significant, but all demonstrations of indirect links were substantial. Besides, optimal CSR and organizational justice provide a reliable and positive domino effect in increasing the role and consequences of employee trust and firm reputation. The findings in this study confirm that upstream-downstream job performance causality can be successfully achieved if job satisfaction has been realized, job satisfaction can be achieved if organizational commitment can also be recognized, and organizational commitment can be developed. Reflection and influence, rather than organizational attractiveness becomes essential.

A Contemporary Issue of Micro-Foundation of CSR, Employee Pro-Environmental Behavior, and Environmental Performance toward Energy Saving, Carbon Emission Reduction, and Recycling

“…Tian and Robertson [ 47 ] suggest that if organizations behave cohesively and share their CSR practices with employees, it urges employees to develop a sense of responsibility towards society. As a result, employees gain knowledge and a better understanding of what is happening in the environment and society and how their organizations contribute to protect the natural environment [ 48 ]. The supportive work environment, which is evident by CSR activities, is positively associated with the employees’ willingness to build and implement environmental related behavior.…”

Corporate Social Responsibility and Justice in the Salary Structure: Practice or Symbolism?

“…One of the criteria that a socially responsible company must meet is to pay fair and timely wages that contribute to its workers' development and improve their quality of life (Barroso Tanoira, 2008;Tangngisalu et al, 2020). The sense of justice of a socially responsible company must be congruent with the distribution of salaries within the firm's remuneration structure, with reasonable wage gaps (Bennett, 2018;Rodrigo & Arenas, 2008).…”

“…Socially responsible companies provide for their workers' economic well-being and encourage the grouping of workers through unions and bargaining groups, meeting its employees' ideological and developmental needs (Du et al, 2015). Workers have expectations regarding companies' social roles in wealth distribution and wage justice (Tangngisalu et al, 2020). Many factors influence the establishment of salary structures in organizations, and salary levels tend to be heterogeneous depending on the characteristics of industries and firms (Claypool et al, 2017;Hyun et al, 2019).…”

“…However, there is little research on the influence of CSR on the structuring of salary policies and internal salary distribution in the company. In this sense, a socially responsible company must pay fair wages to its employees and maintain an internal wage distribution with reasonable wage gaps (Barroso Tanoira, 2008;Bennett, 2018;Rodrigo & Arenas, 2008;Tangngisalu et al, 2020).…”

Analisis Pengaruh Earning per-share, Price earning ratio dan Price to book value Terhadap Harga Saham Perusahaan Konstruksi Milik Negara yang Terdaftar di Bursa Efek Indonesia

“…Keinginan investor melakukan analisis kesehatan suatu saham melalui rasio-rasio keuangan seperti PER, dikarenakan adanya keinginan investor dan calon investor akan hasil (return) yang layak atas suatu investasi saham (Hery, 2016). Price earning ratio (PER) merupakan rasio yang menunjukkan seberapa banyak investor bersedia membayar tiap lembar saham (Tangngisalu et al, 2020). Price earning ratio menghubungkan antara harga pasar per lembar saham dengan Earning Per Share saham yang bersangkutan.…”