HOW DOES CORPORATE SOCIAL RESPONSIBILITY ENHANCE THE
PERFORMANCE OF OIL PALM COMPANIES IN INDONESIA?

HOW DOES CORPORATE SOCIAL RESPONSIBILITY ENHANCE THE
PERFORMANCE OF OIL PALM COMPANIES IN INDONESIA?

company performance, corporate social responsibility, employee responsibility,
environment responsibility, community responsibility

For the last few decades, the Indonesian Oil Palm industry has contributed to
economic development by reflecting on the percentage contribution to the Gross
Domestic Product. However, most of those companies had a history of poor financial
performance. Poor performance has been linked to inefficient corporate social
responsibility. Thus, this study aimed to examine the relationship between corporate
social responsibility and company performance. A quantitative research design
approach was chosen, with a questionnaire developed for primary data collection
via a survey of 231 Indonesian oil palm companies’ board of directors from three
regions using the cluster random sampling technique. The partial least square
regression was applied to analyze the relationship between the variables. The
findings show that the dimension of corporate social responsibility such as
environment responsibility and community responsibility have significant effect on
company performance. The findings have various consequences for the company's
owner, as well as stakeholder parties, who believe that the company should adopt the
main corporate strategy to fulfil the interests of two parties. As a result, it will create
positive vibes from those parties, which will result in better company performance.

Asna1), Puspitosari, Arien Anjar

https://jurnal.stie-aas.ac.id/index.php/IJEBAR

2022

peri irawan

pdf

english

text