STRATEGY FORMULATION MODEL TO IMPROVE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

Abstract

This research is based on reality condition of Corporate Social Responsibility (CSR) activity in generic CSR program. Many companies implement CSR based on external pressures, such as regulators, environmentalists and other associations. CSR Implementation is not an internal awareness of company to improve social environment and has no relevance to main activities and corporate strategy. Therefore, it does not give benefits to the performance and competitive advantage. This research focus is to develop a CSR implementation model based on internal awareness of company by examining the leadership behavior to formulate CSR oriented strategy formulation in an effort to improve company performance. This research location is Makassar Industrial Estate (PT.KIMA). The unit analysis is company. The samples are 81 leaders at general manager level and leadership of company functional manager level. The study proves that transformational leadership stylehas a significant effect on CSR-oriented strategy formulation. Leaders with ethical integrity rules, norms and policies will increase the leadership commitment to formulate the company's strategy by taking into account aspects of natural and social environment in addition to main purpose to generate profits. Organizational learning culture improves the effectiveness of corporate strategy formulation. Strategy formulation will improve leadership commitment to create CSR implementation.