The Role of Green CSR and Corporate Ethics in Enhancing Customer Trust and Society's Quality of Life: The Implementation of People-Planet-Profit Approach

20 Pages Posted: 27 Sep 2013

See all articles by Tengku Ezni Balqiah

Tengku Ezni Balqiah

Universitas Indonesia, Graduate School of Management

Rifelly Astuti

Universitas Indonesia, Graduate School of Management

Elevita Yuliati

University of Indonesia (UI) - Faculty of Economics and Business

Date Written: September 25, 2013

Abstract

Recently, the company is required to emphasized the importance of evaluating its performance through the economic parameters, environmental quality, and social welfare, known as the People-Planet-Profit. Corporate Social Responsibility (CSR) is one activity that can not only increase profits but also have an impact on social and environmental issues (Peloza and Shang, 2011). CSR activities related to the environment (Green CSR) will be a discussion of this research. Although CSR can provide positive outcomes, ethics­ driven view that underlies CSR will positively impact more than the CSR activities based on other motives (lvlaignan and Ferrell, 2004), which may have an impact on social welfare (Sirgy and Lee, 1996).

This research conducted to show the relationship of between Green CSR, Corporate Reputation, Corporate Ethics, Trust, Quality of Life, and Customer Loyalty. The respondents are customers of Pertamina, Coca Cola, dan Bank BNL The data was collected through survey in Jakarta, Medan, and Surabaya, the three largest cities in Indonesia. Using multiple regression, with corporate ethics as moderating variable, the result show a little differrences among 3 firms as the object of research that are lubricant, beverage, and banking.

Keywords: Green CSR, Corporate Reputation, Corporate Ethics, Trust, Quality of Life, Loyalty

JEL Classification: M31, M140

Suggested Citation

Balqiah, Tengku Ezni and Astuti, Rifelly and Yuliati, Elevita, The Role of Green CSR and Corporate Ethics in Enhancing Customer Trust and Society's Quality of Life: The Implementation of People-Planet-Profit Approach (September 25, 2013). Universitas Indonesia, Graduate School of Management Research Paper No. 13-76, Available at SSRN: https://ssrn.com/abstract=2331131 or http://dx.doi.org/10.2139/ssrn.2331131

Tengku Ezni Balqiah (Contact Author)

Universitas Indonesia, Graduate School of Management ( email )

Depok, West Java 16424
Indonesia

Rifelly Astuti

Universitas Indonesia, Graduate School of Management ( email )

Depok, West Java 16424
Indonesia

Elevita Yuliati

University of Indonesia (UI) - Faculty of Economics and Business

Kampus Baru
Depok, West Java 16424
Indonesia

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