The Implementation of Corporate Social Responsibility (CSR) in Central Java Earthquake: A Preliminary Study on Consumer Belief, Attitude, and Purchase Intention

Abstract

In Indonesia, Law No. 40/2007 Using the cases of CSR during the earthquake in Jogjakarta, which was before the enactment of the Law, the objective of this paper is to investigate whether CSR leads to a decrease in competitiveness. In this paper, the objective is achieved by examining the models of beliefs, attitudes, and purchase intentions of consumers toward a company implementing CSR.On May 27, 2006, at approximately 05:59 a.m., an earthquake of 5.6 Richter scale damaged Yogyakarta and the surrounding areas. The results of the preliminary assessment on the damages and losses of an early morning earthquake in the provinces of DIY and Central Java revealed that the earthquake killed more than 5,716 people, injured 37,927 people, destroyed 240,396 houses, as well as resulted in disruption of local economic activities.

Corporate Social Responsibility: Business Responses to Coronavirus (COVID-19) Pandemic

“…The overall finding reveals that most companies have immediately responded with handsome budgets and extended great efforts in every aspect of needs during the COVID-19 pandemic. It widely matches with the findings of earlier studies that investigated companies' performance during previous epidemics, pandemics, tsunamis, earthquakes, terrorisms, and failures (Chong, 2009;Droppert & Bennett, 2015;Fernando, 2010;Glantz, 2014;Hendarto, 2009;Johnson et al, 2011;Madsen & Rodgers, 2014;Muller et al, 2014;Wang, 2009;M. Zhao et al, 2015).…”

“…For example, CSR contributions were remarkable and then helped vulnerable people to survive in society after various natural disasters and human failures ensued around the world such as the 2004 Asian Tsunami (Chong, 2009;Fernando, 2010), the 2005 Hurricane Katrina in the United States (Johnson et al, 2011;M. Zhao et al, 2015), the 2006 Central Java Earthquake in Indonesia (Hendarto, 2009), the 2008 Hurricane Ike in the United States (Wang, 2009), the Weather Damaged Crop in 2008 in the United States (Johnson et al, 2011), the 2008 Sichuan Earthquake in China (M. Zhao et al, 2015), the 2010 Haitian Earthquake (Madsen & Rodgers, 2014), the 2011 Great Eastern Japan Earthquake and Tsunami (Kouadio et al, 2012), and the 2013 Rana Plaza Collapse in Bangladesh (Begum & Solaiman, 2016;Hasan et al, 2017).…”

On the Nexus Between CSR Practices, ESG Performance, and Asymmetric information

“…Meanwhile, in the setting of developing countries such as Indonesia, mandatory non-financial information's disclosure through CSR reporting has been enacted through a national policy under the article 15 of the 2007investment Law No 25 (Waagstein, 2011. However, article 74 of the 2007 Limited Liability Corporation Law No 40 indicates that CSR practices are required for companies operating in the sector that has a direct relationship with natural resources exploration (Hendarto, 2009;Waagstein, 2011;Famiola and Adiwoso, 2016). Given the institutional setting's background of CSR reporting in these two countries, we also envisage that the implementation of CSR practices and the association of ESG performance with asymmetric information might behave differently between the developed and developing economies.…”

ATTITUDE AND PURCHASE INTENTION TOWARDS TEMPE PRODUCERS JOINING THE PROTESTS A Study in Central Java

“…Three types of scales were used: (1) feeling as if the respondents experience the problems that these tempe producers deal with (2) sharing the same feeling as what tempe producers feel; and (3) tendency to arouse internal desire/wish to provide support. Purchase intention towards the products of tempe producers joining the protests was modified from Lee et al (2008) and Hendarto (2009). Two types of scales were used: if the price and quality are similar (between the products of tempe producers joining the protests and those who did not join the protests), then I am (1) willing to consider the products of tempe producers joining the protests (2) willing to purchase the products of tempe producers joining the protests.…”