THE EFFECTS OF VARIETY OF CAPITALISM TOWARD THE LEVEL OF CORPORATE SOCIAL PERFORMANCE

• Main Author: Septiano Halim, Rifqi
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/35735
• Institution: Institut Teknologi Bandung

Companies begin to see corporate social responsibility (CSR) as an opportunity to increase the growth of the company. We could see corporate social performance (CSP) as the outcome of what the company has done related to CSR. We can also relate this to what the company did to the institutional level. Variety of capitalism is one of the frameworks that compare difference and similarities between countries. It divided the country into clustered of economies. This paper aims to see how these varieties of capitalism are going to affect the level of CSP in their corresponding cluster. We use cross-sectional linear regression on the variety of capitalism with the CSP. The study use data from Thomson Reuters Asset4. The result shows that companies that operate in the CME cluster are better compared to the other cluster. This shows that the cluster of economy in which the non-market strategy is used to building core competencies shows a high level of CSP. Cluster, in which the institution is classified high, will result in high level of CSP. This is because the source of the competitive advantage is from the non-market strategy, thus imply they have to comply with the stakeholder wants.