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Stakeholder-s Perception of Company and CSR Actions—Analysis of Website Media Richness
Dwi Narullia a, Muhammad b, Fitri Purnamasari c , Rahmatullah Attaufiqi d, Rizal Ardyatama e, Rheza Wahyu Utomo f

abc Universitas Negeri Malang
dwi.narullia.fe[at]um.ac.id
muhammad.fe[at]um.ac.id
fitri.purnamasari.fe[at]um.ac.id

cde Universitas Negeri Malang
vrahmat16[at]gmail.com
rhezawu[at]gmail.com
ardyatama.rizal[at]yahoo.co.id


Abstract

The management has an obligation to report all conditions and changes to stakeholders as a form of commitment and transparency in managing the company. This information will be used by stakeholders as a basis for decision making. Beside economic information, a company is currently required to submit information related to its activities including the social and environmental aspects too (Corporate Social Responsibility/CSR). Such informations about a company are no longer disclosed through financial statements and annual reports, but also delivered on websites that contain financial and non-financial information (Cho, et al., 2009). With the internet, companies are facilitated to convey their latest information to stakeholders, without waiting for periodic reports. That is because the website is a potential tool for increasing company transparency and accountability (Elkington et al., 1999). Website pages that use a variety of media such as text, photos and videos can improve the quality of the delivery of company information (Lodhia, 2004). This study aims to elaborate on media richness theory, focusing on two things; (1) whether the content presentation on a website can change stakeholder perceptions of the company, and (2) the stakeholder perceptions of CSR actions taken by the company. This research contributes to media richness theory by explaining how much impact the completeness and attractiveness of the content on a website has on stakeholder behavior. To test the influence of website media richness on stakeholder perceptions of the company and CSR actions taken by the company, an experimental study was conducted. The experiment consisted of two conditions that showed two different media presentations: one website that displays information with text and static images, while the other website displays information with text, images, and interactive videos. This study uses the Mann-Whitney Test to see the effect of media use on websites on stakeholder perceptions of the company and stakeholder perceptions of the companys CSR actions. The results obtained in the form of Mann-Whitney Test significance values are below 0.05 for each variable. This shows that there are significant differences for the four variables between websites with low media and websites with high media. The average value of stakeholder perception on websites with high media richness is higher than websites with low media richness. This shows that the media richness used by a company can influence the level on perception of stakeholders towards the company. The high media richness can affects on the increase of stakeholder perceptions of the company. Moreover, there are more evidences about stakeholder perceptions of CSR in this study; there is a difference between those who receive information through a low media website and those who receive information through a rich media website. In addition, the average value of stakeholder perceptions of CSR actions of companies wi

Keywords: Media Richness, Website, Corporate Social Responsibility

Topic: Suistainable Business Development

Link: https://ifory.id/abstract/gZMeP7KD9pmV

Conference: The 3rd Asia Pacific Management Research Conference (APMRC 2019)

Plain Format | Corresponding Author (Dwi Narullia)

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