The Information Quality of Corporate Social Responsibility in Leveraging Banks CSR Reputation: A Study of Indonesian Banks

Lindiawati; Indrianawati; Sri Wahyuni Astuti; Savitha  Nuguri; Rahul Saoji; Bhanu  Devaguptapu; Nitin Prasad

doi:10.36676/jrps.v14.i5.1441

Authors

Lindiawati, Universitas Hayam Wuruk Perbanas, Surabaya-Indonesia)
Indrianawati Universitas Airlangga, Surabaya-Indonesia
Sri Wahyuni Astuti Universitas Airlangga, Surabaya-Indonesia
Savitha Nuguri Independent Researcher, USA.
Rahul Saoji Independent Researcher, USA.
Bhanu Devaguptapu Independent Researcher, USA.
Nitin Prasad Independent Researcher, USA.

DOI:

https://doi.org/10.36676/jrps.v14.i5.1441

Keywords:

Altruism, credibility, CSR, information quality, bank, reputation

Abstract

Banking industry encounters some risks that have to be anticipated. One of the risks is reputation risk which has been considered crucial due to its ease to happen uncontrollably because some of the causes come from external perception on the banks. To maintain bank reputation, a program considered powerful is doing corporate social responsibility (CSR). The programs of CSR are expected to leverage and improve the bank image and reputation. Anyhow, many research revealed that CSR programs exposed by companies are skeptically perceived by public that consider the CSR programs as of more promoting the companies instead of giving helps to public. This gap lays on how banks are able to communicate their CSR programs appropriately showing that they deliver altruistic programs and have done them with credibility. This research is aimed at developing model of CSR information to maintain and improve banks reputation by testing the effect of altruism, credibility, CSR information quality on banks reputation. The variables are controlled by the range on initial capital and the bank business coverage. The respondents are personnel who are in charge of CSR and are the members of Corporate Forum for Community Development (CFCD). They have to look into the bank CSR report first before responding the online questionnaire. Data were processed using Structural Equation Modeling of Warp-PLS 6.0. The result showed that altruism and credibility significantly affect CSR information quality which then CSR information quality also significantly affects the bank reputation.

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ISSN: 2278-6848 | Volume: 14 Issue: 05 | October - December 2023

Refereed & Peer Reviewed

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