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Does corporate social responsibility matter to consumers in Indonesia?

Author

Listed:
  • Denni Arli
  • Fandy Tjiptono

Abstract

Purpose - – The purpose of this research is to examine consumers’ perceptions of corporate social responsibility (CSR) and to explore the impact of CSR on consumers’ support in Indonesia. Design/methodology/approach - – A convenience sample of respondents in Yogyakarta, Indonesia, was collected. The final sample consisted of 254 surveys. Findings - – The findings confirmed the applicability of Carroll’s (1979) categorization of CSRs to consumers in Indonesia but challenged the order of importance of these responsibilities. In addition, the results clearly indicated that perceptions of legal and philanthropic responsibilities significantly explained consumers’ support for responsible businesses. The results will assist managers operating in the developing countries, especially Indonesia. Research limitations/implications - – The sample was taken from one city (i.e. Yogyakarta) in Indonesia and may not represent all Indonesians, as it is a culturally diverse country. Thus, this limits the generalizability of the findings. Practical implications - – For businesses operating in Indonesia, it is important to focus on being a company that follows the regulatory system and supports various philanthropic activities such as poverty reduction, especially when half of the population in Indonesia lives just above the national poverty line. It has been shown that inoculation communication strategy will reduce perceived hypocrisy and mitigate its negative consequences. Originality/value - – The study examined consumers in Indonesia, the world’s fourth most populous nation. The results will provide some insights for multinationals operating in Indonesia.

Suggested Citation

  • Denni Arli & Fandy Tjiptono, 2014. "Does corporate social responsibility matter to consumers in Indonesia?," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 10(3), pages 537-549, July.
  • Handle: RePEc:eme:srjpps:v:10:y:2014:i:3:p:537-549
    DOI: 10.1108/SRJ-01-2013-0007
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    Citations

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    Cited by:

    1. Dewi Tamara & Feronia Budiman, 2022. "New Index ESG Leaders & Investment Decisions in Indonesia Relating to ESG Principles," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 12(1), pages 1-64, December.
    2. Hadi Khan & Vatcharapol Sukhotu, 2020. "Influence of media exposure and Corporate Social Responsibility compliance on customer perception: The moderating role of Firm's reputation risk," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2107-2121, September.
    3. Marcela Rocha Haase Uhlig & Emerson Wagner Mainardes & Valcemiro Nossa, 2020. "Corporate social responsibility and consumer's relationship intention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 313-324, January.
    4. Elodie Gentina & L. J. Shrum & Tina M. Lowrey, 2018. "Coping with Loneliness Through Materialism: Strategies Matter for Adolescent Development of Unethical Behaviors," Journal of Business Ethics, Springer, vol. 152(1), pages 103-122, September.
    5. Yung‐Fu Huang & Manh‐Hoang Do & Vimal Kumar, 2019. "Consumers' perception on corporate social responsibility: Evidence from Vietnam," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1272-1284, November.
    6. Jolita Vveinhardt & Egle Stonkute, 2015. "Corporate Social Responsibility as a Brand: Practical Activity or Social Hypocrisy?," International Conference on Marketing and Business Development Journal, The Bucharest University of Economic Studies, vol. 1(1), pages 9-20, July.

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