This document summarizes a thesis that examines the influence of corporate social responsibility (CSR) on the purchase intentions of Generation Y in Jakarta, Indonesia. The thesis includes a literature review on CSR and its relationship to purchase intentions. It develops hypotheses about the influence of specific CSR attributes - corporate giving, corporate environmentalism, and corporate ethics - on purchase intentions. The methodology section describes a quantitative survey conducted with Generation Y consumers in Jakarta. The results section finds that corporate environmentalism and corporate ethics significantly influence purchase intentions, while corporate giving does not. The conclusion discusses the implications for managers to focus on environmental and ethical CSR programs when communicating with Generation Y consumers.

1. The Influence of Corporate Social Responsibility
towards Purchase Intention of Generation Y in
Jakarta
Joey Zahary Parlaungan G
1701355772
Thesis Defense - International Business Program - Bina Nusantara International University

2. Thesis Structure
Introduction
1
Literature
Review
2
Research
Methodology
3
Result and
Finding
4
Conclusion
5

3. CHAPTER 1Introduction

4. Globalization
• Double edged sword: Improve the country’s
economy yet increase unfairness (Gerulis-Darcy,
2010)
• Increases competition in the market as well as
their responsibility towards the environment
(Porter & Kramer, 2007)
• CSR is the mean to fulfill such responsibility

5. CSR in era of Globalization
There is a necessity
to integrate CSR in
the business strategy
(L’etang, 1994)
A mean to obtain
public approval
(Cutlip, Center, &
Broom, 1999)
Preferential
treatment for ethical
companies (Auger,
Devinney, Louviere, &
Burke , 2003; 2008)

6. CSR in Indonesia
• Become mandatory in 2007
because of the common
appearance of violation workers’
right and environmental damage.
• Also to promote CSR culture
• KPMG survey in 2015 revealed
that in Indonesia, the level of CSR
is really high, which indicated that
companies do comply to the 2007
regulation.
• The 2007 regulation gives unfair
treatment to companies that
operate in certain industry

7. 53.5 mil in 2015
Socially
responsible
companies
42.30%
G
E
N
Y

8. Research Questions
• Does Corporate Social Responsibility (CSR) attributes affect
the purchase intention of Generation Y in Jakarta?
• Does Corporate Giving affects the purchase intention
of Generation Y in Jakarta?
• Does Corporate Environmentalism affects the
purchase intention of Generation Y in Jakarta?
• Does Corporate Ethics affects the purchase intention
of Generation Y in Jakarta?

9. S
C
O
P
E

10. Companies and
Organizations
Investors
Students
Future
research
Aims
&
Benefits
• Increase awareness
• Guideline for
investing
• Increase knowledge
• Insight about
impact of CSR

11. Research Objective
• To examine whether Corporate Social
Responsibility attributes, namely, corporate
giving, corporate environmentalism, and
corporate ethics, positively affect Generation
Y’s purchase intention in Jakarta

12. Chapter 2Literature Review

13. Corporate
Social
Responsibility
• Bowen (1953), obligation of
business practices to match
the business policies and
decision with the values of
the society.
• Carroll (1983) proposed to
categorize CSR into 4 area

14. CSR and
Purchase
Intention
From past literatures, there is a positive relationship between CSR and
purchase intention (UK, US, South Korea)
Brown &
Dacin, 1997;
Mohr& Webb,
2005; Sen &
Bhattacharya,
2001
The relationship is biased because of in quantitative studies they inducing
artificial awareness of CSR and the effect of social desirability
Öberseder,
Schlegelmich,
&Gruber
(2011)

15. Corporate Giving
• A form of contribution, in cash or in-kind, by companies to not-for-
profit organizations
• Charity, donation, scholarship, sponsorship
• Positive relationship between corporate giving and purchase intention
(Baksh-Mohammed, Callison, & Choi, 2012;McGuire et al, 1988).

16. Corporate Environmentalism
Corporate environmentalism is a
range of practices that include
articulation of environmental
policy, development of
environmental strategies, and
environmental-related measures
(Gupta, 1995)
Could enhance company image
and become more persuasive in
the eye of customers (Gladwin,
Kennelly, & Krause,1995; Jennings & Zandbergen,
1995)
Uncertain impact on the
company performance (Robins &
Wieserma, 1995)

17. Corporate Ethics
Divided into three
aspects (Chun, Shin,
Choi, & Kim, 2013):
• External
•
• Employee ethics
1
Britt (2005), if a
company violate the
norm and law of a
place, it could cripple
sales.
2
Focus on sweatshop
and child labor
3
Internal

18. Hypotheses and
Theoretical Framework
• H1: Corporate giving significantly
influences Generation Y purchase
intention
• H2: Corporate environmentalism
significantly influences Generation
Y purchase intention
• H3: Corporate ethics significantly
influences Generation Y purchase
intention
• H4: Corporate Social Responsibility
(CSR) significantly influences
Generation Y purchase intention

19. Chapter 3 Research Methodology

20. Research Methodology
Research Objective
To examine whether Corporate Social
Responsibility attributes, namely,
corporate giving, corporate
environmentalism, and corporate ethics,
positively affect Generation Y’s purchase
intention in Jakarta.
Data Analysis Method
ANOVA Test
Research Design
Deductive/quantitative
Explanatory
Survey - Questionnaire
Cross sectional method
Purposive and quota

21. Operationalization of Variables

22. Chapter 4
Result and Analysis

23. Descriptive Analysis
36%
16% 16%
16%
16%
11998
64%
14%
14%
8%
AGE
20-25 years old 26-30 years old 31-35 years old 36 - 40 years old
50%
48%

24. Pre-Test
Variable Cronbach’s Alpha Pearson Correlation
Purchase Intention 0.819 P value < 0.01
Corporate Giving 0.875 P value < 0.01
Corporate Environmentalism 0.808 P value < 0.01
P value < 0.05
Corporate Ethics 0.779 P value < 0.01

25. Multiple
Linear
Regression

26. Multiple
Linear
Regression
Purchase Intention = 0.664 + 0.083(Corporate giving) + 0.286
(Corporate Environmentalism) + 0.348(Corporate Ethics)

27. H1: Corporate giving
significantly influences
Generation Y purchase
intention
Consumer will spend more if
company do donation
CRM
0.315 p-value score of corporate giving -> insignificant toward purchase intention

28. 0.003 p-value score of corporate environmentalism-> significant toward purchase intention
H2: Corporate
environmentalism significantly
influences Generation Y
purchase intention
Strong relationship between
companies’ environmental
incentives and consumer’s
purchase intention
As public attention
towards environmental
crises rising, corporate
environmentalism become
more efficient affecting
purchase intention

29. H3: Corporate ethics
significantly influences
Generation Y purchase
intention
Consumer will spend less from a
company who violates the law
0.000 p-value score of corporate ethics-> significant toward purchase intention

30. H4: Corporate Social
Responsibility significantly
influences Generation Y
purchase intention
Generation Y declared the
importance of social attributes
in their purchasing decision
P value < 0.05

31. Chapter 5
Conclusion and Recommendation

32. Conclusion
CSR does affect Generation Y
purchase intention in Jakarta
•Corporate environmentalism
•Corporate ethics

33. Managerial Implication
Corporate Social
Responsibility does
affect purchase
intention of
Generation Y in Jakarta
1
Corporate giving 
Corporate
environmentalism or
corporate ethics
2
Communicate their
CSR program through
their product or
services
3

34. Limitation
• Uneven portion of generation Y
(64% 20-25 years old, 8% 36-40
years old)
• Only in Jakarta – result might be
different in other cities of
Indonesia
• Time restriction
• More even proportion of
generation Y cohort
• More variable from customer’s
perspective
• Self-expressive benefits
• Environmental knowledge
• The effect of socioeconomic
status and cultures
• Use Qualitative studies or mixed
method
Recommendation

35. Thank you
Joey Zahary Parlaungan Ginting