OIDA International Journal of Sustainable Development
Open access peer-reviewed journal
The Effect of Corporate Social Responsibility to Financial Performance of Company in Indonesia
Farah Margaretha a, Belina Rachmawati b
a,b Faculty of Economics , Trisakti University, Jakarta, Indonesia.
Volume 03, Issue 04, Pg. 11-18, 2016.
Abstract: This study aims to determine the effect of corporate social responsibility (employee, environment, and community) to financial performance (ROA and Tobin ‘s Q). This study using a sample of 30 primary sector companies listed in Indonesia Stock Exchange for the period 2010-2013 which is choosen using purposive sampling method. The analysis used in this study is multiple regression analysis with the Statistical Package for the Social Science ( SPSS ) as its program. The results of this study indicate that CSR measured through indicators of employee has no significant effect on the company’s financial performance as measured by ROA and Tobin ‘s Q. Environment has a significant effect on ROA but not against Tobin ‘s Q. Community has a significant effect both on ROA and Tobin ‘s Q. The results of this study can be used by managers for consideration to improve the financial performance by choosing environment and the community as a social activity.
Keywords: corporate social responsibility, financial performance, return on asset, Tobin’s Q
Political Economy Communication Perspective: The ‘Relationship’ Between Capitalism and Illegal Logging in Riau, Indonesia
Faculty of Political and Social Sciences, University of Riau, Indonesia
Volume 03, Issue 04, Pg. 19-24, 2016.
Abstract: This paper aims to explain the ‘relationship’ between capitalism and illegal logging in Riau. The relationship is built on the character of the essence of capitalism that ‘greed’. The immediate implication of this character produces cultural issues of illegal logging. To examine and dissect this phenomenon is used Political Economy Communications perspective. This perspective is constructed by a shortage of Political Economy that cannot explain the phenomenon of communication actors policy makers and businessmen who support illegal logging. While the Political Communication can not understand economic phenomena [rentier or reward] relationship between the actors and the policy-makers cause of illegal logging. This paper uses a qualitative approach based on the study of documents. Data was analyzed using descriptive qualitative. Therefore, this paper is an analytical to provide input on the relationship between capitalism as an ideology and illegal logging as activity [behavior] actors involved in it. Results of the discussion paper indicates that: [i] Capitalism has a significant correlation and causality to damage the forest environment. The relationship is built on the character of the essence of capitalism that ‘greed’. The immediate implication of this character generates a culture of illegal logging. Then the illegal logging that is what led to the emergence of the season in Riau. Among them, the flood season, smog and erratic weather and air temperature heats up the all representation of Riau future. [ii]. Philosophical statement ‘Riau forest is our home’ as to support the efforts of law enforcement actors in Riau, so earnest muzzle of illegal logging. Spirit ‘Riau forest is our home’ is a symbol of the struggle of law enforcement actors [police, Judiciary and Justice] suppress the crime of illegal logging in Riau simultaneously. The parable illegal logging is a common enemy lists society is another language in real fight ‘Riau forest belongs to all’. The essence of this paper is to emphasize the importance of the perspective of Political-Economy-Communications in an attempt to understand the phenomenon of Capitalism and Illegal Logging relationship as brainstorming in reducing environmental damage forests in Riau.
Keywords: Communication, Capitalism, Economy, Illegal Logging and Politics
Managing the Brand through Advocacy and Its Influences: A Study in the Hospital as Healthcare Provider
Rinny Liestyana a, Renny Risqiani b
a,b Magister Management Program, Post Graduate Studies,
Trisakti University, Jl. Kyai Tapa No.1 Grogol, West Jakarta, Indonesia
Volume 03, Issue 04, Pg. 25-34, 2016.
Abstract: Improving human lives through a better health condition has been considered as the main subject for human development. Human life expectancy is getting higher due to the development of healthcare in science, technology and industry. The fast growing of healthcare sector, especially private hospital industry in Indonesia has been giving the consequence on more options to the customers to obtain the healthcare services. Therefore, the private hospitals are challenged to have some competitive advantages as well as effective marketing strategy. Hospital branding by executing brand advocacy is one of the choice for hospital marketing strategy. The hospital choice based on other patients’ preference play its role in the good healthcare service experience for a better health condition.
The study examines the effect of brand attitude, perceived quality, brand reputation, and customer-oriented behavior on brand trust, and then to analyze the effect of brand trust on self-brand connection and brand advocacy, also the effect of self-brand connection on brand advocacy. The study uses a survey method with a sample size of 184 respondents, drawn from the customers of branded, B class, private hospitals in Tangerang, Banten province, Indonesia. Methods of the data analysis in this study are SEM (Structural Equation Model) which used to test the hypothesis.
The result showed the two variables of four which are brand reputation and customer-oriented behavior have a significant and positive effect on brand trust, while the other two variables which are brand attitude and perceived quality has no significant effect on brand trust. The effect of brand reputation is stronger than the effect of customer-oriented behavior on brand trust. Brand attitude has no significant effect on brand trust in this study because the frequency of service experience is still low. Higher frequency of hospital visit seems giving more brand trust to the respondents. No significant effect also happen to perceived quality on brand trust in this study is suspected due to the respondents spend their healthcare expenses by their out-of-pocket-money than other resources like insurance. This condition causes a higher expectation to the service quality provided by the hospital.
Furthermore, brand trust itself and self-brand connection have a significant and positive effect on brand advocacy. The effect of brand trust on self-brand connection unveil as the strongest effect in this model, and followed by the direct effect of brand trust on brand advocacy as the second strongest one. The dominant indicator reveals from brand trust is the trust that customers receive from health professional at the hospital. In addition, the study also revealed brand trust has a significant and positive effect on brand advocacy directly as well as indirectly mediated by self-brand connection even the indirect effect is smaller than its direct effect.
The hospital managers are expected to be able to cultivate brand advocacy through positive word of mouth by building brand trust, mainly, and the customers’ self-brand connection to the hospital. Trust to the hospital brand itself is driven by the brand reputation and customer-oriented behavior of the hospital. Positive word of mouth about the healthcare services is spread by the advocates who are the satisfied previous customers, their family and friends having a good overall perception about the hospital. A good hospital reputation is constructed by a good service standard consistently for both functional service and medical service. Service standard has to focus on the customers’ interest so it is aiming for error reduced as well as patient safety. Even the hospital attains more customers, the service level is never under normal variation. Customer-oriented behavior of medical and non-medical staff is implemented by paying attention to every service contact point to the customers. Having detailed management on every service contact point will reduce the risk of customers’ disappointment and build brand trust. A hospital manager has to realize that the non-medical services are as much important as the core medical services, also giving the attention almost equally to the patients and their family and friends. Furthermore, self-brand connection is formed by conducting emotional bounding which comes from good service experiences in the past. Many hospitals only focus on the new customers without paying enough attention to the past customers or even loyal customers. Hospital has to be able to manage a customer-based data, and then facilitate a periodic gathering event or even one group community where the loyal customers become the advocates and sharing their past experiences in the hospital. The prospective customers will get a trusted testimonial while the past customers will be updated by full information on the current services. The hospital managers are challenged to create and maintain good memorable service experiences for continuous branding as well as sustainable good performances of healthcare providers and its role for higher life expectancy.
Keywords: brand advocacy, brand trust, hospital branding, Indonesian healthcare sector, SEM (Structural Equation Model).
Impact of Working Ability, Motivation and Working Condition to Employee’s Performance; Case in Private Universities in West Jakarta
University of Trisakti, Jakarta, Indonesia
Volume 03, Issue 04, Pg. 35-42, 2016.
Abstract: Employee is part of organization which has a significant role and impact to the performance of an organization. They have to run the operational process that led to organizational success. Therefore, it is important for us to know what factors that influence employee performance. It is also because the employee performance is a very significant factor affecting profitability of an organization. Inefficient job performance will bring about a tragedy to the organization as associated with lower productivity, profitability and overall organizational effectiveness. Measuring performance is an essential function in business management. Business owners usually have quantitative or qualitative analysis procedures to review their companies operations. Quantitative analysis uses mathematical calculations to measure the performance output. Qualitative analysis allows business owners, or also customers to make personal judgments or inferences from business information. Employee performance is a key cog of a company. Employees usually represent the largest expense for a company, and measuring performance is essential to the employee management process. So, it can be concluded that the employee performance is the core construct of today’s work place. The importance of employee is also way higher in service sectors, including education sectors.
The purpose of this study was to empirically prove the impact of working ability, working condition, and motivation on employee’s performance in private universities in West Jakarta. University of Bunda Mulia, University of Bina Nusantara, University of Krida Wacana, University of Tarumanegara, University of Trisakti and University of Esa Unggul are used to be the objects in this research. Those universities are the reputable universities with high number of students, and also followed by high number of employees also.
A questionnaire was designed and disseminated randomly to 160 staff among those six universities and multiple regression was used to generate the findings. The results shows that all those three variables; working ability, working conditions and motivation has positive and significant effect on employee performance.
Future study is still needed, regarding this issue. For further research, aspect individual attributes such as individual character can be included as part of variable working ability. Leadership aspect and financial aspect, also can be included on variable working conditions, since it is also an important factor that influence the employee’s performance. In the future studies, it can also be tested about the effect among each variable, not only the effect on job performance. And to enrich the results, it can also compare the situation between the private universities and public, or compare to another area.
Keywords: Motivation, Performace, Universities, Working Ability Working Condition
Determinants of Poverty: Panel Data Analysis in Asean-5; 1990 – 2013
University of Trisakti, Jakarta, Indonesia
Volume 03, Issue 04, Pg. 43-52, 2016.
Abstract: Poverty is a multi-faceted phenomenon which affects not only the ability to purchase goods, but also vulnerability towards various pressures that may prohibit an individual from enjoying life. This vulnerability may be gauged from living conditions such as employment, health, education, and housing. In short term, poverty can be concluded as one problem that really bothers every country around the world. Poverty is one of the issues being debated in the central and local governments in various regions including in ASEAN region. Since its establishment in 1967, ASEAN has been transforming in from five developing countries to a group consisting of 10 countries that are accounted in the international area. But still, they face the poverty problem up till now.
That’s why the analysis of determinants of poverty is essential for preparing strategies towards efficient intervention. This research aims to investigate the determinants of poverty in ASEAN-5. Indonesia, Thailand, Malaysia, Laos, and Vietnam are used as the object since the poverty rate in those five countries can be categorized as high since long time ago, and also the availability data of each country. Because for the rest of ASEAN countries, especially Myanmar and Cambodia, we still face lack of data that are publish freely in the internet. The variables used in this research consist of macroeconomics variables, such as inflation rate, the growth of gross domestic product, unemployment rate, and also social variables, such as total population and youth literacy rate. These variables are considered as the important factors that every country should have. And along with its development, ASEAN countries also have various condition about those factors. Also, it can be said that for some factors, there are some gap between the ASEAN countries.
Data used in this research is obtained from the World Bank Publication. The method used in this research is a quantitative method. By using panel data analysis and STATA 11 as the software, it is seen that generally, factors determine poverty rate in ASEAN-5 are the growth of GDP, inflation rate, unemployment rate, and youth illiteracy rate. Panel data or longitudinal data typically refer to data containing time series observations of a number of individuals. This research use the combination of time series and cross section, that’s why we can use the panel data analysis.
Future studies are still needed as a development of this study. We recommend to adding another factor that might be influence poverty, and if it is possible, to use all the ASEAN countries so that we can get broader depiction about the ASEAN countries.
Keywords: ASEAN, Illiteracy, Macroeconomics, Panel Data, Poverty Rate
Designing Online Marketing For SME (Organic Food Case Study)
Hasrini Sari a, Aditya Parama Setiaboedi b
a, b Industrial Engineering Management,
Institut Teknologi Bandung, Bandung, Indonesia.
Volume 03, Issue 04, Pg. 53-63, 2016.
Abstract: Organic food consumption in the world tends to grow each year along with the increasing public awareness on health. This positive trend also happens in Indonesia. Nevertheless, many producers of organic food in Indonesia face problems in market their products. Most of them are SMEs so they have limited financial resources for conducting marketing activities. Therefore, they need kinds of marketing program that can be run at a low cost but reach a wide range of audience. Online marketing meets these requirements. Nowadays, the role of online commerce in increasing organizations’ profit is growing each year. Organizations spending on online marketing is also increasing as media buyers adjust to online world while other media advertisement spending keep falling or remain constant each year. Nevertheless, the online marketing effort should be designed in a way that will deliver value to both the organization and its customers. Several SMEs in Indonesia have adopted online marketing program but they do not enjoy its maximum benefit. Even worst, they just ignore or stop their online marketing activities. One form of online marketing is a website creation program. This study is intended to investigate the characteristics of online marketing activities and website that will enhance the customers’ intention to buy. Several steps are taken. First step, we identify characteristics of online buyers in general in Indonesia. Then, based on their similarities and differences, we group them into several segments. Second step, we identify potential segment suitable to be targeted by organic food producers. At the end, we identify the online marketing activities and the technical characteristics of website that match with the profile of the selected segment.
Total 686 valid data are collected out of 688 data gathered using an online questionnaire. The questionnaire’s URL is being spread through several online social media. Factor analysis is used to analyze the data and the result shows there are six factors that influence online purchase intention, namely ease-of-use, website integrity, customer communication, word-of-mouth, transaction security, and perceived usefulness. Then, cross tabulation and cluster analysis is conducted to obtain segments and their profiles. This study shows that potential online shoppers could be grouped into three segments based on behavioral variables (online buying frequency and spending, and payment method) and psychographic variables. For the organic products, the potential target is professional-shopaholic group,, the segment with buyers who have high frequency on online shopping and relatively large number of online financial transaction. These characteristics are then translated into technical characteristics of organic food online marketing activities and website in order to increase visitors’ intention to buy. At the end, this paper is also describes the implementation of the study result by analyzing an existing processed organic food producer.
Keywords: intention to buy, online marketing, online shoppers, organic products, website
Indoor Environmental Quality Credits in Green Buildings in India
Subodhika Vohra a, Meenakshi Mital b
a,b Department of Resource Management and Design Application,
Lady Irwin College, University of Delhi, India
Volume 03, Issue 04, Pg. 63-83. 2016.
Abstract: A critical component of a green building is its indoor environment. Maintaining good IAQ requires enhanced ventilation, increased consumption of energy and thus higher operating costs. Reducing ventilation rates to save energy increases indoor generated VOCs and small particles by an amount that may pose health risks . To strike a balance between the two, integrated design approach towards IAQ and energy is used in green buildings. The study focuses on how to make the rating system more adaptable, where the potential planner is able to understand the rating system and integrate the knowledge to identify the hindrances and how can they overcome the same to attain credits in the rating system. Further for higher adoption of the rating system in India, new aspects that can be included in the rating system and how to make credits easier to attain have been seen. Also in the LEED for India NC/CS rating system there have been India specific changes and the study is warranted to understand how it has been perceived by the users and take their suggestions for improvement of the rating system.
The study was carried out in six buildings which were developed as case studies. Four buildings have been certified under LEED India NC, one under LEED India CS and one is pre certified under LEED India CS. The study revealed the catalysts and hindrances associated with attaining credits under IEQ category. Some of the catalysts were gains in productivity, occupant comfort and wellbeing and improved indoor air quality. Some of the hindrances faced were high implementation cost of technology, amendment in the design of the building and difficultly to coordinate with the MEP, architect and project manager. The study also highlights the suggestions of stakeholders towards making credits under IEQ category easier to attempt and attain. Some of the suggestions were to reduce the threshold value for day lighting from 75% to 50%, exclude individual controls in commercial buildings and restricting CO2 monitoring to AHU level.
Keywords: Catalysts; Green Buildings; Hindrances; Indoor Environmental Quality; LEED for India.