A CASE OF CORPORATE HYPOCRISY: REVEALING CSR AS A PROTECTIVE APPROACH

• Main Author: Ranindhita Hapsari, Priskila
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/77402
• Institution: Institut Teknologi Bandung

This paper aims to conduct a study on factors that impact and are impacted by CSR-washing. The first analyzed objective is to construct a standard of the components in non-financial firm performance, which gives us reputation, credibility and employee retention — these factors are derived from relevant previous research that are collectively categorized through the instrumentalism theory. The second analyzed objective is to gather relevant components of Corporate Social Performance (CSP)-as-insurance to the topic. The main research question directs the study to analyze the outcomes of non-financial performances impacted by CSR-washing. To gather information, this paper uses a qualitative approach by conducting in-depth interviews with the management positions of multinational companies in ten different countries which is then run through ATLAS.ti, a big data processing software that will act as a research tool in this study. In brief, all results lead to the conclusion that factors of reputation, credibility and employee well-being play a major role in a company’s overall performance with underlying factors emerging through the interviews emphasizing on the structure of the company itself as well as its operations process on products or services against competitors. Lastly, our findings highlight the importance of fulfilling government obligations in order to protect the company from risks along with the importance of legitimacy and the presence of a sustainability committee.