Effect of Corporate Social Responsibility and Cultural Organization on Job Satisfaction and Business Performance (Studies in BUMN and BUMD in Riau Province)

Abstract

This research builds an integrative model which aims to provide an overall interpretation on how the contribution of Corporate Social Responsibility (CSR), organizational culture, and work satisfaction influence business performance.

This study is conducted at BUMN (state owned company) and BUMD (municipally owned company) in the Riau Province by using primary and secondary data. The samples are employees of BUMN (state owned company) and BUMD (municipally owned company) of Riau province consisting of 272 respondents. Sampling technique uses purposive sampling and simple random sampling and using path analysis.

The result shows that strong organizational culture, which has a relationship with CSR is able to increase work satisfaction and business performance of BUMN (state owned company) and BUMD (municipally owned company), however, in terms of business performance, BUMN (state owned company) and BUMD (municipally owned company) have not been optimal as expected because of stronger focus on external compared with the internal focus. Similarly, the implementation of CSR is able to increase the performance of BUMN (state owned company) and BUMD (municipally owned company). Organizational culture has a significant role in influencing work satisfaction, and business performance but not for CSR. Since the CSR is the policy of the central BUMN (state owned company) and aimed to contribute for external stakeholders, therefore the branch office of BUMN (state owned company) in Riau Province just implement it without employees’participation the same reason also occurs at BUMD (municipally owned company).

Keywords: CSR, Organizational Culture, Work Satisfaction, and Business Performance