Corporate Social Responsibility And Corporate Image (Correlational Study On PT Djarum Sports CSR Bakti Program On Improved Corporate Image Among USU Students)

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Corporate Social Responsibility and Corporate Image: A Correlational Study of PT Djarum Sports CSR Bakti Program

In today's business landscape, companies are no longer just focused on generating profits, but also on making a positive impact on the community. This shift in focus has given rise to the concept of Corporate Social Responsibility (CSR), which has become a crucial aspect of a company's reputation and image. One of the CSR programs that has gained significant attention is the sports service program initiated by PT Djarum, a leading Indonesian tobacco company. This study aims to investigate the relationship between this CSR program and the improvement of PT Djarum's image among students of the University of North Sumatra (USU).

The Importance of CSR in Building a Positive Company Image

In an era where consumers are increasingly aware of the social and environmental impact of their purchasing decisions, companies are under pressure to demonstrate their commitment to CSR. A positive company image is essential for building trust and loyalty among customers, as well as attracting top talent and investors. Effective CSR programs can help companies to differentiate themselves from their competitors, enhance their reputation, and ultimately drive business growth.

Research Methodology

This study employed a correlational method to assess the extent to which the sports service program of PT Djarum affected the perception of the company's image among USU students. The research population consisted of all undergraduate students in USU, totaling 4,476 people. A sample of 98 respondents was selected using the Yamane Taro Formula with 10% precision and a confidence level of 90%. The sampling method used was purposive sampling and accidental sampling.

Data Collection and Analysis Techniques

Data was collected through field research and direct observations by distributing questionnaires to respondents. The data collection process was systematic to ensure that the information obtained was valid and reliable. For analysis, a single table analysis technique was used, cross table, and hypothesis test. The calculation was carried out with the help of SPSS software version 15.0, which produced the RS (RHO) value of 0.527.

Research Findings

The results of the analysis showed that the hospital value of 0.527 was in the 0.40-0.70 category, indicating a significant relationship between the CSR Bakti Sports program of PT Djarum and the improvement of the company's image among USU students. Based on Spearman rules, because RS> 0, alternative hypotheses (HA) were accepted. This means that the CSR program carried out by PT Djarum had a significant influence on how students viewed the company's image.

Analysis and Discussion

Improving the company's image through CSR programs is crucial, especially among the younger generation who are potential customers and employees in the future. The PT Djarum sports service program not only provided social benefits, such as improving the health and fitness of the community, but also helped build positive relationships between companies and the community. Thus, companies are not only seen as profit-oriented entities, but also as partners who are committed to social progress.

A significant relationship between CSR programs and improving the company's image highlights the importance of effective communication in running these programs. Companies need to ensure that the results of their CSR programs are delivered well to the community and related parties. Through a good communication strategy, companies can strengthen their image and build trust in the minds of consumers.

Conclusion

The CSR Bakti Sports program of PT Djarum made a significant contribution to the increase in the image of the company among USU students. The results of this study indicate that companies that are active in social programs and participate in activities that are beneficial for the community will be more valued and considered positive by the younger generation. This shows that CSR is not only a social responsibility, but also an effective business strategy in building and maintaining a positive company image.

Recommendations

Based on the findings of this study, the following recommendations are made:

  1. Companies should prioritize CSR programs: Companies should recognize the importance of CSR programs in building a positive company image and prioritize these initiatives in their business strategies.
  2. Effective communication is key: Companies should ensure that the results of their CSR programs are communicated effectively to the community and related parties to build trust and strengthen their image.
  3. CSR programs should be tailored to the needs of the community: Companies should tailor their CSR programs to the specific needs of the community they serve to ensure that these programs are effective and beneficial.
  4. Monitoring and evaluation are essential: Companies should regularly monitor and evaluate the effectiveness of their CSR programs to ensure that they are meeting their objectives and making a positive impact on the community.

By implementing these recommendations, companies can build a positive company image, enhance their reputation, and ultimately drive business growth.
Q&A: Corporate Social Responsibility and Corporate Image

In our previous article, we explored the relationship between Corporate Social Responsibility (CSR) and corporate image, using the PT Djarum Sports CSR Bakti Program as a case study. In this article, we answer some of the most frequently asked questions about CSR and corporate image.

Q: What is Corporate Social Responsibility (CSR)?

A: CSR refers to a company's commitment to social and environmental responsibility, beyond its financial obligations to shareholders. It involves integrating social and environmental considerations into a company's business operations and decision-making processes.

Q: Why is CSR important for companies?

A: CSR is important for companies because it helps to build trust and loyalty among customers, employees, and other stakeholders. It also enhances a company's reputation and image, which can lead to increased sales, revenue, and profitability.

Q: What are some examples of CSR programs?

A: Some examples of CSR programs include:

  • Environmental initiatives, such as reducing carbon emissions or conserving water
  • Community development programs, such as building schools or providing healthcare services
  • Social responsibility initiatives, such as promoting diversity and inclusion or supporting local charities
  • Philanthropic initiatives, such as donating to charitable causes or sponsoring community events

Q: How can companies measure the effectiveness of their CSR programs?

A: Companies can measure the effectiveness of their CSR programs by tracking metrics such as:

  • Employee engagement and satisfaction
  • Customer loyalty and retention
  • Community impact and engagement
  • Financial returns on investment (ROI)
  • Reputation and brand image

Q: What are some common challenges faced by companies in implementing CSR programs?

A: Some common challenges faced by companies in implementing CSR programs include:

  • Limited resources and budget
  • Difficulty in measuring the effectiveness of CSR programs
  • Resistance from employees or stakeholders
  • Balancing business goals with social and environmental responsibilities
  • Ensuring transparency and accountability in CSR reporting

Q: How can companies communicate the value of their CSR programs to stakeholders?

A: Companies can communicate the value of their CSR programs to stakeholders by:

  • Providing clear and concise information about CSR initiatives and goals
  • Using social media and other digital channels to share CSR stories and updates
  • Engaging with stakeholders through regular reporting and feedback mechanisms
  • Highlighting the benefits of CSR programs for employees, customers, and the community
  • Showcasing CSR achievements and successes through awards and recognition programs

Q: What are some best practices for companies to follow when implementing CSR programs?

A: Some best practices for companies to follow when implementing CSR programs include:

  • Developing a clear CSR strategy and policy
  • Engaging with stakeholders and employees in the development and implementation of CSR programs
  • Measuring and reporting on the effectiveness of CSR programs
  • Ensuring transparency and accountability in CSR reporting
  • Continuously evaluating and improving CSR programs to ensure they are meeting business and social goals.

By following these best practices and answering these frequently asked questions, companies can better understand the importance of CSR and corporate image, and develop effective CSR programs that benefit both their business and the community.