ABSTRACT: In the debate
context of Corporate Social Responsibility (CSR), there are two different
views. Firstly, as the main objective of any businesses is profit, CSR is
considered as financial burden to the company. On the other hand, the second
view proposes that profit-oriented companies tend to be unsustainable if the
interests of relevant stakeholders are not considered. The claim that there is
a relationship between CSR and business performance is still debatable. CSR can
be properly and effectively implemented if companies use a systematic approach
to address issues related to the environment. The company’s market orientation
is a manifestation of sensitivity and response to the company’s stakeholders.
Thus, businessoriented market will try to integrate the needs of the social
responsibility into each company’s activities. In this study, the impact of
market orientation and CSR on corporate performance was proposed to take place
through the process of building reputation and employees’ commitment. This
study aims to examine the relationship between CSR and market orientation, and
explore relationships with the company’s reputation and employees’ commitment
in increasing business performance. 30 bottled drinking water companies in East
Java were chosen. Partial Least Square analysis (PLS) was employed due to the
limited number of respondents. The findings suggest that the impact of CSR and
market orientation on a firm’s performance is determined by the mediating
variable, corporate reputation and employees’ commitment. Stronger
implementation of market orientation and CSR is proved to build a better
company reputation. Implementation of market orientation, CSR and reputation of
the company is proved to strengthen employees’ commitment to the company.
Implementation of market orientation and CSR is not able to improve the company
performance, if when implemented, the company was not able to effectively
communicate the implementation to build company’s reputation and increase
employees’ commitment to the company.
Keywords: CSR, Market
Orientation, Corporate Reputation, Employee Commitment and Business Performance
Penulis: Christin Susilowati,
MS. Idrus, Armanu Thoyib
Kode Jurnal: jpmanajemendd110111
Atau download gratis di bawah ini:
Artikel Terkait :
