COMPLETION REPORT

Employment Perception on Corporate Responsibility Toward Job Satisfaction: Experience fromJapanese Companies in Indonesia

Dr. Umi Karomah Yaumidin
Adjunct Researcher
Economic Research CentreIndonesia Institute of Sciences (LIPI)The purpose of this study is to explore the influence of employees’ perception on corporate social responsibilities
toward job satisfaction as measure of employees’ well-being. The growing awareness of CSR issue based on ISO
26000 social responsibilities guidance is high attention in some Asian countries, but the research and discussion howcompany implement it into their organizational commitment to realize employee well-being is not many discussed
in the literature. Most of the literature defined CSR based on Caroll’s definition concept and three domain model(Zeng, 2010; Fang, 2010; Tsoura; 2004). To the best of our knowledge, there are limited studies on the impact ofCSR using ISO 26000 guidance which include all internal and external stakeholders. This empirical study willconducted in three Japanese manufacturing companies which operate around Bogor and Tangerang. In total, therewill 150 employees are questioned over the period from July to December 2014. We use Structural Equation Method
as main research methods analysis and various quantitative methods such as mean comparison, one way analyses ofvariance as well as correlation and factor analyses are applied.
Our study found that Japanese manufacturing companies has a wide horizon on CSR although most ofthem do not have good understanding on ISO 26000. We learn that initially CSR should begin with treat employees
as a part of business not only as an engine of factory. This research indicates that CSR contributes to increase job
satisfaction and organizational commitment of employees. Four out of seven components of CSR namely
accountability, transparency, respect for the rule of laws, and respect for human rights have significant effect on CSR
formation. In addition, based on employees’ perception, reputable of company among their stakeholders, charity
program and encouraging employment productivity are very important to drive CSR activities. However, employees
are not satisfied on their career since there are limited program to improve their skills.
This study also indicates that job satisfaction of employee will not merely caused by the level of salary. AsJapanese companies are obey on the rule of manpower in Indonesia, thus most of employee state that they are satisfy
to stay work on these companies. They fell their salary is met with their basic needs. Workload and career opportunity
for them sometimes could be an obstacle to improve productivity. However, supervision, the nature of work andsocial relation have been maintained well so that employee can work well in the good atmosphere.
Overall, CSR activities that reflected in the seven major categories has significant impact to increase job
satisfaction of employee, although CSR variables can explain only 18 percent and the rest proportion on job
satisfaction formation will be explained by other factors such as business environment, managerial and others. The
outcome of this research, then we expect that we can contribute to improve the performance of Japanese companies
to create job satisfaction among Indonesia’s employees, thus the inter-relationship between Japan and Indonesia willbe better and have great impact to increase employee well-being as well as high contribution to Indonesia economicdevelopment.. For Indonesia companies the result of this study could be a good knowledge to learn much how
Japanese companies conducting and managing CSR for increasing employees’ well-being.

Publication of the Results of Research Project:
Verbal Presentation (Date, Venue, Name of Conference, Title of Presentation, Presenter, etc.)
The 5th Indonesian Regional Sciences Association (IRSA) International Institute. The Conference was held on
3-4 August 2015 in Denpasar, the Capital of Bali Province, Indonesia.

Thesis (Name of Journal and its Date, Title and Author of Thesis, etc.)

Book (Publisher and Date of the Book, Title and Author of the Book, etc.)
Will be published in Journal: Review of Indonesia Economics and Business Studies, Vol.1 2016.