Archive for April, 2011

The Influence of Corporate Social Responsibility Activity toward Customer Loyalty through Improvement of Quality of Life in Urban Area

Wednesday, April 20th, 2011

By: Tengku Ezni Balqiah, Hapsari Setyowardhani, and Khairani

The success of Corporate Social Responsibility (CSR) activities can create competitive advantage by influencing customer responses to firms’ offering. Customer’s awareness of CSR activity will influence their loyalty through their perception that activity can improve society’s quality of life where the CSR activities were implemented. The objective of this study is to evaluate the relationship between CSR awareness and loyalty that mediated by CSR Belief, Company Ability Belief, Quality of Life, and Company Reputation using Structural Equation Modelling (SEM). The result shows little differrences among five firms/brands as the object of the research, that are beverage, soap, car, lubricant, and cigarette. This result has an implication for the firm that CSR activities are not just cost center activities, but also can create reputation, and in the long run can create customer loyalty that contributes to
firm’s financial benefit.

Keywords: Corporate social responsibility, quality of life, company reputation, loyalty

Intellectual Capital: A Focus on Human Capital Reporting Practices of Top Malaysian Listed Companies

Wednesday, April 20th, 2011

By: Norhayati Mat Husin, Noormala Ahmad, and Raedah Sapingi

This paper aims to examine the extent of human capital (HC) reporting among top Malaysian companies and introduce an HC reporting guideline that can be used by Malaysian companies and regulator. It begins by developing the HC framework based on previous intellectual capital (IC) frameworks. This framework is then used to examine each of the top 100 Malaysian companies listed on the Bursa Malaysia in year 2008. Using the content analysis method, it reviews the annual reports of these companies to determine the extent of HC reporting. The findings of this paper highlight the need for the development of IC framework particularly on HC. HC differences were also identified between Malaysia and other countries such as Sri Lanka and Australia, and it is argued that these differences can be attributed to the social, economic, and political factors.

Keywords: Human capital, intellectual capital, Malaysia

Relationship between Organizational Justice Perception and Engagement in Deviant Workplace Behavior

Wednesday, April 20th, 2011

By: Muhammad Irfan Syaebani* and Riani Rachmawati Sobri**

Deviant workplace behavior is not something unusual and is prevalent in organizational dynamics. It is found in all types of organizations and in all levels of positions. This deviance is costly not only in financial, but also in social and psychological terms. This research aims to reveal whether there is any association between organizational justice perception and engagement in deviant workplace behavior since so many scholars argue that organizational injustice can serve as one of the causes to workplace deviance. Three forms of organizational justice are used in this research; they are: distributive, procedural, and interactional justice. Additionally, two dimensions are used to classify deviant workplace behavior, which are severity and target. Putting these two dimensions into low-high continuum, it helps to develop a typology of deviant workplace behavior into four classifications: production, political, property, and personal aggression. Result findings show us that organizational justice perception play important role in the occurrence of deviant workplace behavior. However, it is not the sole predictor since only one deviant workplace behavior (out of twelve) which correlates significantly with one form of organizational justice.

Keywords: Deviant workplace behavior, organizational justice, distributive justice, procedural justice, interactional justice, production deviance, political deviance, property deviance, personal aggression

Government Financial Management, Strategy for Preventing Corruption in Indonesia

Wednesday, April 20th, 2011

By: Haryono Umar

In popular view, the term accountability generally refers to a wide spectrum of public expectations dealing with organizational performance, responsiveness, good governance, and even morality of government and nonprofit organizations. These expectations often include implicit performance criteria – related to obligations and responsibilities – that are subjectively interpreted and sometimes even contradictory. And in this broader conception of accountability, the range of people and institutions to whom public and nonprofit organizations must account include not only higher authorities in the institutional chain of command but also the general public, the news media, peer agencies, donors, and many other stakeholders (Kearns, 1996). Government could build its accountability by implementing good and proper financial management. Financial management is a tool for government to show its performance and accountability to the public. Meanwhile, corruption is the misuse of public office for private gain. As such, it involves the improper and unlawful behavior of public service officials, both politicians and civil servants, whose positions create opportunities for the diversion of money and assets from government to them and their accomplices (Langseth, 1999). The more corruption, the more far away from good governance, and the less public accountability. According to Klitgaard (1988), power minus accountability is corruption. This paper explains about the influences of implementing government financial management to corruption fighting and good governance in broadly view. Discussion will be derived to find out the understanding of financial management, corruption, and good governance terminology fits for Indonesia environment. The purpose of this paper is to achieve common knowledge that financial management should be implemented by public organization from strategic management for public organization approaches. Besides, reader will find out explanation from both theoretical approach and pragmatical approach as well.

Keywords: Corruption, accountability, good governance, performance, financial management