Authors:
Yulita F. Susanti
and
Albert Hasudungan
Affiliation:
Department of Management, Sekolah Tinggi Manajemen IPMI, Duren Kalibata, Jakarta Selatan, Indonesia, Indonesia
Keyword(s):
Corporate social responsibility, brand attitudes, customer satisfaction
Abstract:
Because of massive land conversion of some forests to monoculture palm oil, consumers put more pressure to a palm oil company to endorse more environmental and social sustainable responsibilities in their operation. Corporate Social Responsibility (CSR) is one of the sustainability activities that are tailored to meet their consumer expectation. The purpose of this study is to evaluate the effect of CSR implementations on consumer satisfaction and local welfare (local employment opportunities, cash-income diversification, adequate access to health and education services). With such quantitative and qualitative research objectives, this study utilizes mixed methods. Firstly, 90 responds of the Jakarta’s Millennial respondents, consuming Sinarmas product, and ranging from 15 to 29 years (between 2018 and 2019) were statistically examined. Furthermore, with complex dimensions to quantify local economic welfare, local expertise interviews are held for the qualitative assessment to asses
the impact of CSR on local welfare. This paper finds the weak quantitative relationship of CSR associative program to consumer satisfaction. From qualitative assessment, the experts suggest that company welfare program shall be improved to deliver positive local welfare effect. In their practical application, their CSR program can gain more public recognition if more collaboration and communications to wider stakeholders are held beyond their plantation sites.
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