CAN THE GOOD CORPORATE ETHICS STATEMENTS AND CORPORATE SOCIAL RESPONSIBILITY CREATEPOSITIVE CONSUMER RESPONSESON THE COMPANY AND ITS PRODUCTS? AN EMPIRICAL FINDING IN THE CASE OF CONTROVERSIAL COMPANY
Abstract: This research
explores the basic issue about whether the good corporate ethics statements and corporate
social responsibility (CSR) can
create positive consumer
responses on the company
and its products. We
examined the proposed
model that links
corporate ethics, CSR, corporate
reputation, and perceived
risk in the
case of controversial
products that offers by
company, especially on
cigarette products. As
one of the
doers in Indonesian tobacco industry,
PT. Djarum implemented
many CSR programs including educational initiatives. This
research was conducted
in the Faculty
of Economics and
Business Diponegoro
University as a
recipient of PT.
Djarum, that implemented CSR
educational initiative
through “Bakti Pada
Negeri” program.Research was conducted using a
survey method through distributing
questionnaires to209
university students of Faculty
of Economics and Business
Diponegoro University. The
sampling method which
was used for this research was a
non-probability sampling with convenience sampling technique. By using the
structural equations model with AMOS software to examine the proposed model, this research
indicated that the more
well-defined of corporate
ethics statements lead
to better evaluation of
CSR activities;the better
evaluation of CSR
activities lead to
good corporate reputation, but did not lead to lower perceived risk; the
good corporate reputation lead to lower perceived risk; and the more
well-defined of corporate ethics statements did not lead
to lower perceived
risk. Based on
Sobel test results,
this research indicated
thatperceived CSR has
a significant role
in enhancing corporate
reputation which in
turn reducing perceived risk.
Author: Ari Setiyaningrum
Journal Code: jpmanajemengg130085
