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Archives of Business Research – Vol. 10, No. 4
Publication Date: April 25, 2022
DOI:10.14738/abr.104.12023. Simandjuntak, J. B. P., & Sudibyo, Y. A. (2022). The Role of Business Etchics as Moderating Variable in the Effect of Integrated
Reporting, Corporate Social Responsibility, and Environmental Performance Toward Corporate Reputation. Archives of Business
Research, 10(04). 14-25.
Services for Science and Education – United Kingdom
The Role of Business Etchics as Moderating Variable in the Effect
of Integrated Reporting, Corporate Social Responsibility, and
Environmental Performance Toward Corporate Reputation
J. B. P. Simandjuntak
Faculty Economics and Business Trisakti University, Jl.
Kyai Tapa No.1, Tomang, Grogol Petamburan, Jakarta 11440, Indonesia
Yvonne Augustine Sudibyo
Faculty Economics and Business Trisakti University, Jl.
Kyai Tapa No.1, Tomang, Grogol Petamburan, Jakarta 11440, Indonesia
ABSTRACT
The study to analyze the effect of Integrated Reporting, Corporate Social
Responsibility, and Environmental Performance toward Corporate Reputation. And
also analyzes the impact of Business Ethics as a moderating variable that
strengthens or weakens the relationship between the effects of Integrated
Reporting, Corporate Social Responsibility, and Environmental Performance
toward Corporate Reputation. The researcher collects empirical study data from
the companies using secondary data taken from the annual reports of companies
listed on the Indonesia Stock Exchange (IDX) and Publish the Sustaninability
Reporting. Then analyzes them using the Statistical Package for the Social Sciences.
A total of 150 units of data analysis that meet the criteria and can be used as samples
in this study. Business Etchics as a moderator between Integrated Reporting,
Corporate Social Responsibility, and Environmental Performance toward
Corporate Reputation with proxy and measurement on Corporate Coode of Conduct
in companies listed on the Indonesia Stock Exchange is still little researched. So this
research will not only fill in the current gaps in the literature but also spark new
academic debates, but this study will also contribute to the practice of Corporate
Reputation. This study reveals that Integreted Reporting and Environmental
Performance have a positive and significant effect on Corporate Reputation.
Corporate Social Responsibility have no effect on Corporate Reputation.
Meanwhile, the role of the Business Ethics as a moderating variable have
strengthens the influence between Integreted Reporting and Environmental
Performance on Corporate Reputation from before being moderated by the
Business Ethics. This study only takes secondary data from the annual reports of
companies and Sustanainability reports of companies from the Indonesian stock
exchange. And only have thirty companies as a data this study.
Keywords: Integrated Reporting, Corporate Social Responsibility, Enironmental
Performance, Business Ethics
INTRODUCTION
The manufacturing industry that publishes sustainability reporting provides the largest
contribution to the increase in Indonesia's economic growth which reached 7.07% in the
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Simandjuntak, J. B. P., & Sudibyo, Y. A. (2022). The Role of Business Etchics as Moderating Variable in the Effect of Integrated Reporting, Corporate
Social Responsibility, and Environmental Performance Toward Corporate Reputation. Archives of Business Research, 10(04). 14-25.
URL: http://dx.doi.org/10.14738/abr.104.12023
second quarter of 2021. This sector is the source of the highest growth, which is 1.35%. In this
period, the manufacturing sector itself recorded growth of 6.91% despite experiencing
pressure due to the Covid-19 pandemic.
Table 1: Manufacturing Company Developments 2016-2020,
Sources: Indonesia Stock Exchange (2021)
Corporate reputation is often considered as one of the most important intangible assets of any
company (Hall, 1993; Hasseldine et al., 2005). A strong reputation helps a company build a
sustainable competitive advantage (Sanchez and Sotorrio, 2007), because it signifies quality
and among all the intangible assets of a company, a company's reputation is perhaps the most
enduring (Hsu, 2012).
Based on this background, the researcher has formulated the problems in this research,
including: (i) Does the principle of integrated reporting affect the reputation of manufacturers
listed on the IDX for the period 2016-2020; (ii) Does CSR affect the reputation of manufacturers
listed on the IDX 2016-2020 period; (iii) Does environmental performance affect the reputation
of Manufacturers listed on the IDX for the 2016-2020 period; (iv) Can business ethics moderate
the effect of the principle of interactive reporting on the reputation of companies listed on the
IDX for the 2016-2020 period; (v) Can business ethics moderate the influence of CSR on
company reputation in Manufacturers listed on the IDX for the 2016-2020 period; (vi) Can
Basic industry & chemicals
ANIMAL FEED 5 5 4 4 4
CEMENT 6 6 5 5 5
CERAMICS, GLASS, PORCELAIN 6 7 7 6 6
CHEMICALS 11 12 10 11 12
METAL AND ALLIED PRODUCTS 15 15 18 21 22
OTHER - BASIC INDUSTRY AND CHEMICALS 1 2 3
PLASTICS & PACKAGING 12 13 14 14 15
PULP & PAPER 8 8 10 11 10
WOOD INDUSTRIES 2 2 4 5 6
JUMLAH 65 68 73 79 83
Consumer goods industry
COSMETICS AND HOUSEHOLD 6 6 6 6 7
FOOD & BEVERAGES 16 20 21 26 28
HOUSEWARE 3 4 3 4 5
OTHERS - CONSUMER GOODS INDUSTRY 1 1
PHARMACEUTICALS 10 10 11 12 13
TOBACCO MANUFACTURERS 4 4 4 5 5
JUMLAH 39 44 45 54 59
Miscellaneous industry
AUTOMOTIVE AND COMPONENTS 13 13 13 13 13
CABLE 6 6 6 7 7
ELECTRONICS 1 1 1 2 2
FOOTWEAR 2 2 3 3 2
MACHINERY AND HEAVY EQUIPMENT 2 3 4 5 5
OTHERS - MISCELLANENEOUS INDUSTRY 5 5 6
TEXTILE, GARMENT 16 17 20 22 21
JUMLAH 40 42 52 57 56
GRAND TOTAL 144 154 170 190 198
2016 2017 2018 2019 2020
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Archives of Business Research (ABR) Vol. 10, Issue 4, April-2022
Services for Science and Education – United Kingdom
business ethics moderate the effect of environmental performance on company reputation in
Manufacturers listed on the IDX for the 2016-2020 period.
Based on the formulation of the problem above, it can be seen that the objectives of this
research are, (i) To obtain empirical evidence about the effect of the principle of integrated
reporting on the reputation of companies listed on the IDX for the period 2016-2020; (ii) To
obtain empirical evidence about the effect of CSR on the reputation of companies listed on the
IDX for the period 2016-2020; (iii) To obtain empirical evidence about the effect of
environmental performance on the reputation of companies listed on the IDX for the 2016-
2020 period; (iv) To obtain empirical evidence that business ethics size can moderate the effect
of the integrated reporting principle on the reputation of companies listed on the IDX for the
2016-2020 period; (vi) To obtain empirical evidence that business ethics can moderate the
effect of environmental performance on company reputation on manufactures listed on the IDX
for the 2016-2020 period.
The researcher limits the scope in which this research relates to the influence of the Principles
of Integrated Reporting and Corporate Social Responsibility and environmental performance
on the reputation of companies with business ethics as a moderating variable in Manufacturing
sector companies on the IDX for the 2016-2020 period. The theoretical significance of this
research is that it is expected to contribute to the development of stakeholder theory, corporate
social responsibility in manufacturing sector companies listed on the IDX, including during the
pandemic. This study focuses more on how the differences in the principles of integrated
reporting, corporate social responsibility, and corporate social responsibility affect the
reputation of the company with business ethics (or Code of Conduct) as a moderating variable.
Through this research, it is expected to provide many benefits for many parties, including, (i)
Researchers can add insight into the influence of the principles of integrated reporting,
Corporate Social Responsibility, environmental performance on company reputation with
business ethics (or Code of Conduct) as a variable moderation, (ii) For companies or businesses
it is expected to provide benefits in strengthening efforts, determining corporate social
responsibility strategies in order to increase company growth, (iii) For further researchers, it
is hoped that this research can be used as a reference to be compared with other research.
LITERATURE REVIEW
Stakeholder Theory
Stakeholder theory was coined by Freeman in 1984 and Jones in 1995, which stated that a
business can be understood as an association of stakeholders (customers, suppliers, employees,
and so on) that together build success in a business (Freeman et al., 2010).
Corporate Social Responsibility (CSR)
CSR is a reforestation strategy carried out by businesses to preserve the culture, social and
economy in an area where the business operates (Raimi, 2017). However, during the last
decade the concept of CSR has increased continuously and has attracted the attention of
business people to be accepted and implemented in business activities (Hou, 2019).
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Simandjuntak, J. B. P., & Sudibyo, Y. A. (2022). The Role of Business Etchics as Moderating Variable in the Effect of Integrated Reporting, Corporate
Social Responsibility, and Environmental Performance Toward Corporate Reputation. Archives of Business Research, 10(04). 14-25.
URL: http://dx.doi.org/10.14738/abr.104.12023
Corporate Reputation
Corporate reputation is an evaluation of the level of preference that stakeholders have for the
company, measured on a continuum from negative (unfavorable) to positive (favorable)
(Lange, D., Lee, PM and Dai, Y. (2011)
Integratd Reporting
The implementation of integrated reporting guarantees many benefits for the company (Vitolla
et al., 2018). In fact, compliance with the framework can enable standardization of content that
can support the reading and understanding of integrated reports by investors and all
stakeholders.
Environmental Performance
In creating a good and sustainable environment for the future, a company is considered
responsible for environmental management to create better environmental performance for
stakeholders. Environmental performance is a form of company performance in an effort to
create a good (green) environment (Suratno, et.al., 2006; Sukasih & Sugiyanto, 2017).
Business Ethics
A survey of 1,699 CGMA designation holders in 99 (2019) countries provides insight into the
ethical status of business in the workplace. Here are some of the key findings: 51% of
respondents said ethical performance is a greater focus for senior management at their
company than it was three years ago, and 55% believe the importance of business ethics will
grow even further in the next three years.
Conceptual Framework
Figure 1 Conceptual Framework
Research Hypothesis
H1: Application of the Principles of Integrated reporting affects the reputation of a company.
H2: Corporate Social Responsibility affects the reputation of a company.
H3: Environmental performance affects a company's reputation
H4: Business ethics moderates the effect of integrated reporting principles on company
reputation
H5: The influence of business ethics moderates the effect of CSR on a company's reputation
Perbedaan Prinsip
integrated reporting
(X1)
Corporate Social
Responsibility (X2)
Kinerja Lingkungan
(X3)
Reputasi
Perusahaan (Y)
Etika Bisnis (Z)
a b c