Continuously implement CSR programs

Oct 13, 2025 by vinooalluri.com 4 views

The Effect of Corporate Social Responsibility (CSR) on Corporate Image of PT.Sorik Marapi Geothermal Power (SGMP) in Mandailing Natal North Sumatra

Introduction

In today's business landscape, Corporate Social Responsibility (CSR) has become a crucial aspect of a company's operations. It is no longer just a social responsibility program, but an important strategy in building a company's reputation and creating a positive image among stakeholders. PT Sorik Marapi Geothermal Power (SGMP), a leading geothermal power company in North Sumatra, has been facing challenges in building positive relations with the surrounding community. The company has launched various CSR programs in an effort to change the view of the community and accept its operations. This study aims to investigate and analyze the influence of CSR on the company's image in Mandailing Natal, North Sumatra.

The Importance of CSR in Building a Positive Company Image

CSR is a business approach that aims to create value for society by operating in a responsible and sustainable manner. It involves integrating social, environmental, and economic considerations into a company's operations and decision-making processes. CSR can help build a positive company image by demonstrating a company's commitment to social and environmental responsibility. It can also enhance a company's reputation, increase customer loyalty, and improve its relationships with stakeholders.

Research Methodology

This study uses a quantitative analysis method by promoting data collection techniques through a questionnaire. The questionnaire is designed to test several variables, including the validity test, reliability test, and t-test. Researchers took 100 respondents as a sample with a non-probability sampling method. The data obtained was then analyzed using SPSS software version 23.

Research Findings

The results of the analysis showed a significant effect of Corporate Social Responsibility (CSR) on the company's image of PT. Sorik Marapi Geothermal Power. The coefficient of determination test indicates that 17% of the company's image variables can be explained by the CSR program, while the remaining 83% is influenced by other factors that are not examined in this study.

Additional Analysis and Explanation

From the results of the study, it is clear that the CSR program run by PT SGMP has a positive impact on community perception. The company's involvement in various social initiatives, such as education, the environment, and health, has helped build strong emotional ties with local residents. However, it is essential to note that although there is a measured positive influence, there are still 83% of other factors that can affect the company's image. This shows that the company needs to pay attention to other aspects, such as transparency in communication, responses to citizen complaints, and sustainable real contributions to local development.

The Role of CSR in Building a Positive Company Image

CSR is not just a social responsibility program, but an important strategy in building a company's reputation. By involving the community in various social initiatives, a company can create a positive image and enhance its reputation. However, it is essential to note that CSR is not a one-time effort, but an ongoing process that requires continuous commitment and engagement.

The Challenges of Implementing CSR

Implementing CSR can be challenging, especially for companies that are new to the concept. It requires a significant investment of time, resources, and effort. However, the benefits of CSR far outweigh the costs. By implementing CSR, a company can create a positive image, enhance its reputation, and improve its relationships with stakeholders.

Conclusion

In conclusion, this study has shown that CSR has a significant effect on the company's image of PT. Sorik Marapi Geothermal Power. The company's involvement in various social initiatives has helped build strong emotional ties with local residents. However, it is essential to note that there are still 83% of other factors that can affect the company's image. This shows that the company needs to pay attention to other aspects, such as transparency in communication, responses to citizen complaints, and sustainable real contributions to local development.

Recommendations

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

Continuously implement CSR programs: PT SGMP should continue to implement CSR programs that benefit the community and enhance its reputation.
Pay attention to other factors: The company should pay attention to other factors that can affect its image, such as transparency in communication, responses to citizen complaints, and sustainable real contributions to local development.
Develop a holistic strategy: PT SGMP should develop a more holistic strategy in CSR that involves the community in various social initiatives.
Strengthen relationships: The company should strengthen relationships with local residents and stakeholders through regular communication and engagement.

Limitations of the Study

This study has several limitations, including:

Sample size: The sample size of 100 respondents may not be representative of the entire community.
Non-probability sampling method: The non-probability sampling method used in this study may not be representative of the entire community.
Limited scope: This study only examined the effect of CSR on the company's image and did not examine other factors that can affect the company's image.

Future Research Directions

Future research should examine the following:

The effect of CSR on other aspects of a company's image: Future research should examine the effect of CSR on other aspects of a company's image, such as its reputation, customer loyalty, and relationships with stakeholders.
The role of CSR in building a positive company image: Future research should examine the role of CSR in building a positive company image and enhancing its reputation.
The challenges of implementing CSR: Future research should examine the challenges of implementing CSR and provide recommendations for companies that are new to the concept.
Frequently Asked Questions (FAQs) about the Effect of Corporate Social Responsibility (CSR) on Corporate Image of PT.Sorik Marapi Geothermal Power (SGMP) in Mandailing Natal North Sumatra

Q: What is Corporate Social Responsibility (CSR)?

A: Corporate Social Responsibility (CSR) is a business approach that aims to create value for society by operating in a responsible and sustainable manner. It involves integrating social, environmental, and economic considerations into a company's operations and decision-making processes.

Q: Why is CSR important for a company's image?

A: CSR is important for a company's image because it demonstrates a company's commitment to social and environmental responsibility. It can enhance a company's reputation, increase customer loyalty, and improve its relationships with stakeholders.

Q: What are the benefits of CSR for a company?

A: The benefits of CSR for a company include:

Enhanced reputation
Increased customer loyalty
Improved relationships with stakeholders
Increased brand value
Improved employee engagement and retention
Increased access to new markets and customers

Q: What are the challenges of implementing CSR?

A: The challenges of implementing CSR include:

High costs
Difficulty in measuring the impact of CSR initiatives
Limited resources and capacity
Difficulty in engaging stakeholders
Limited understanding of CSR among employees and stakeholders

Q: How can a company measure the impact of CSR?

A: A company can measure the impact of CSR by:

Conducting regular surveys and feedback sessions with stakeholders
Monitoring and evaluating the effectiveness of CSR initiatives
Using metrics such as return on investment (ROI) and return on social investment (ROSI)
Conducting regular audits and assessments of CSR initiatives

Q: What are some examples of CSR initiatives that a company can implement?

A: Some examples of CSR initiatives that a company can implement include:

Environmental initiatives such as reducing energy consumption and waste
Social initiatives such as providing education and training programs for employees and stakeholders
Community development initiatives such as building schools and healthcare facilities
Philanthropic initiatives such as donating to charitable causes

Q: How can a company communicate its CSR efforts to stakeholders?

A: A company can communicate its CSR efforts to stakeholders by:

Creating a CSR report that outlines the company's CSR initiatives and impact
Using social media to share CSR-related content and updates
Hosting CSR events and activities that engage stakeholders
Providing regular updates and progress reports on CSR initiatives

Q: What is the role of leadership in implementing CSR?

A: Leadership plays a critical role in implementing CSR by:

Setting the tone and direction for CSR initiatives
Providing resources and support for CSR initiatives
Engaging with stakeholders and communicating CSR efforts
Monitoring and evaluating the effectiveness of CSR initiatives

Q: How can a company ensure that its CSR efforts are sustainable and long-term?

A: A company can ensure that its CSR efforts are sustainable and long-term by:

Developing a long-term CSR strategy that aligns with the company's overall business strategy
Investing in CSR initiatives that have a lasting impact
Engaging with stakeholders and monitoring their feedback and concerns
Continuously evaluating and improving CSR initiatives to ensure they remain effective and relevant.