Surabaya, 6 September 2008
AUTHOR:
Herlina Yoka Roida
ABSTRACT:
Corporate Social Responsibility (CSR) program is still disputing and would remain in the public domain for along time. The accelerating trend of corporate ‘obligation’ to work for social betterment has increased the pressure on companies to be more behave ethically and contribute to economic development of local community as well as society at large. In practice, however, the finding of from several approaches still raises the argument that corporate social responsibility as the way to solve the problem of wealth distribution is far from the effectiveness directly to society. Publication is becoming trade off of advertising or rival costs between return that companies can get and risk (cost) that they have to pay.
This paper will briefly stress the implementation of Corporate Social Responsibility (CSR) program and the substantive of CSR program towards wealth transfer to society through CSR program announcement. Theoretically, announcement can be read as a information that affect investors or stakeholders decision. The information send signal as negative or positive signal. By looking the substantive content of CSR program report, we can distinguish the corporate social responsibility and corporate social (ir) responsibility as well as information signal cost that corporation should pay to increase their value. Than, the integration of CSR program not only as philanthropic contribution but must consider the ethical codes, resource accommodation and organization credibility as well. The last part of this paper offers some conclusions as to how the effectiveness CSR program announcement as an information signal of ethical behaviour can initiate a process of transparency by understanding of weather symbolic or substantive that can be distinguished from economically and ethically values.
KeyWords: corporate social responsibility, signal theory, advertising cost, rival cost.FULL TEXT: FREE DOWNLOAD
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