Abstract
The purpose of this study was to determine the effect of the implementation of the FSC-STD-40-004 V3-0 FSC-STD-40-004 Chain of Custody Forest Stewardship Council (CoC FSC) on business Performance. This research was conducted in several companies that use paper material in Banten Province of Indonesia with 155 respondents from 15 companies that have implemented the FSC CoC Management System for at least 5 years. The research background is due to lack of research on the benefits of CoC FSC in companies in the Banten Province of Indonesia. The data collection was carried out by distributing questionnaires on april until may 2019 and analyzing data processing use Structural Equation Model (SEM) and software Linear Structural Model (LISREL) version 8.70. The results show that the implementation of the CoC FSC Management System significantly influenced business performance such as increase customer satisfaction index, increase sales, increase productivity and safety and employee satisfaction.
Highlights
The Forest Stewardship Council (FSC) was established in 1993 by business groups, environmentalists and community leaders to monitor changes towards sustainable forest management around the world [1]
Based on the analysis of the results of research can be concluded that the implementation of the Chain of Custody (CoC) FSC has a positive and significant impact on influenced business performance such as increase customer satisfaction index, increase sales, increase productivity and safety and employee satisfaction so that it will increase the company's profit The research object in Banten province but could be extended to other provinces
The results of this study the application of the FSC CoC management system has an influence on the company's business performance so that companies that have not implemented it are recommended to immediately implement it, this study reinforces the results of previous studies
Summary
The Forest Stewardship Council (FSC) was established in 1993 by business groups, environmentalists and community leaders to monitor changes towards sustainable forest management around the world [1]. Chain of Custody (CoC ) certification is a certification system developed by the FSC to verify the origin of forest products used in the production process, originating from responsible sources, there are mechanisms that can trace the origin of forest products and ensure they are safe from mixing of uncertified raw materials. Chain of custody certificates can be given to companies if the certification body can verify the origin of the wood used in production comes from FSC-certified sources, in addition to production, converting, handling and packaging,storage until the hands of consumers are not mixed with other raw materials that are not certified (FSC.org, 2019). Influence of Implementation Chain of Custody Forest Management System FSC-STD-40-004 V3-0 to Business Performance of Paper Industries in Banten Indonesia [12] examined and found that 91% of FSC-certified CoC companies were required to increase the training of their workers, 82% increase safety, and as much as 64% increase workers' wages.
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