Company's Core Business Research Articles

Impact of Corporate Social Responsibility (CSR) Reporting on Firm Performance

Purpose: The aim of the study was to assess the impact of corporate social responsibility (CSR) reporting on firm performance.
 Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries.
 Findings: Research suggests that there is a positive correlation between Corporate Social Responsibility (CSR) reporting and firm performance. CSR reporting not only enhances a company's reputation, mitigates risks, and improves access to capital but also fosters meaningful stakeholder engagement and contributes to long-term value creation. However, it is important to note that the specific impact of CSR reporting can vary across industries and contexts, influenced by factors such as industry norms, regulatory environments, and the extent to which CSR is integrated into a company's core business strategy.
 Implications to Theory, Practice and Policy: Stakeholder theory, legitimacy theory and resource-based view (RBV) may be use to anchor future studies on assessing the impact of corporate social responsibility (CSR) reporting on firm performance. In practice, CSR reporting uniquely contributes by promoting integrated reporting, where financial and non-financial information is combined to offer a holistic view of a company's performance, fostering transparency and accountability. From a policy perspective, CSR reporting makes unique contributions by advocating for globally harmonized reporting standards, facilitating comparability and consistency in reporting across industries and regions.

AKHLAK CULTURE ORGANIZATION COMMUNICATION TOLL ROAD CONSTRUCTION COMPANY (STUDY AT PT JASA MARGA (PERSERO) TBK)

The cultural transformation of AKHLAK in the organization places a strong emphasis on the role of human capital as cultural actors to enhance competitiveness in the global market and position state-owned enterprises (BUMN) as talent factories. As a state-owned enterprise, PT Jasa Marga (Persero) Tbk must undergo transformation with AKHLAK Culture as outlined in the Circular Letter of the Ministry of State-Owned Enterprises Number: SE-7/MBU/07/2020 on Core Values. This includes the establishment of core values as the identity and adhesive for a work culture that supports sustainable performance improvement. This research aims to understand and explain the process of internalization and implementation of organizational culture values at PT Jasa Marga (Persero) Tbk, both at the central office and branches, encompassing construction services, traffic, and transactions as the company's core business with minimum service standards set by the government as the authority. The study adopts an interpretive paradigm with a qualitative approach and ethnographic methods characterized by extensive fieldwork involving data collection through interviews, observations, symbols, artifacts, and various other data sources. The analysis focuses on the central and branch organizations as customer service functions for toll road users. The findings indicate that the implementation of AKHLAK in various units, including the central office, operational work regions, and subsidiaries, has led to unique innovations and creativity, particularly noticeable in operational areas where there is a lack of specific AKHLAK guidance. However, the concentration of commitment reinforcement is limited to th e leadership level, creating a gap in implementation in the field units, the core business areas, where the services provided do not align with the core meanings and behaviors of the AKHLAK Cultural Values

MODERNISASI PESAWAT C-130 HERCULES KERJASAMA PT. GARUDA MAINTENANCE FACILITY AEROASIA TBK DAN PT. DIRGANTARA INDONESIA

The existence of PT. GMF AeroAsia Tbk and PT. Dirgantara Indonesia is an important pillar in the national defense industry that can support the interests of the Indonesian Air Force, especially in the process of maintaining and modernizing the C-130 Hercules aircraft. On this basis, this study aims to identify and analyze the synergy of PT. GMF AeroAsia Tbk and PT. Dirgantara Indonesia in the maintenance and modernization of the C-130 Hercules aircraft. The method used in this research is a qualitative method with a case study approach. The data analysis technique used is an interactive data analysis technique. Data collection techniques were carried out through in-depth interviews, observation, as well as literature studies and documentation studies. The data validity technique used is source triangulation. The results showed the synergy of PT. GMF AeroAsia Tbk and PT. Dirgantara Indonesia in the maintenance and modernization of the C-130 Hercules aircraft is carried out by establishing three main pillars of synergy which include sharing, flexibility/stability (error compensation), and task-dependence. First, the sharing pillar is implemented by sharing tasks based on the company's core business and capabilities. The two pillars of flexibility/stability are implemented by complementing each other's capabilities that neither company has. The three pillars of task dependence are carried out based on a memorandum of understanding that has been agreed upon by both parties

The impact of creating shared value strategy on corporate sustainable development: From resources perspective

AbstractPorter and Kramer abandoned the traditional view of trade‐offs and proposed the concept of “creating shared value”, which integrates social and environmental needs into a company's core business to improve both society and the environment while enhancing its competitiveness. Whether creating shared value strategy can achieve corporate sustainable development should be urgently investigated. With the resource‐dependence theory and resource‐based theory, the positive impacts of creating shared value strategy on corporate social, environmental, and financial performances are theoretically analyzed and empirically tested from the perspectives of resource provision and acquisition. In further analysis, the mechanism test based on “sharing value” suggests that creating shared value strategy can strengthen its competitiveness by fulfilling social and environmental responsibilities. The consequences test demonstrates that creating shared value strategy promotes the provision of technological resources and information resources, which is conducive to the acquisition of market resources, human resources, and capital resources.

ПРОГНОЗНЫЙ МОНИТОРИНГ ТЕХНИЧЕСКОГО СОСТОЯНИЯ ПУТЕМ АНАЛИЗА СОСТАВЛЯЮЩИХ СИГНАЛА ВИБРАЦИИ ПОДШИПНИКОВ ВРАЩАЮЩИХСЯ ЭЛЕКТРИЧЕСКИХ МАШИН

Relevance In industry, any failures and unplanned downtime of machines or systems can degrade or interrupt a company's core business, potentially leading to significant penalties and irreparable loss of reputation. Existing traditional maintenance approaches (failure or routine maintenance) suffer from some assumptions and limitations, such as high prevention or repair costs and inadequate or inaccurate mathematical degradation processes. Due to the trend of intelligent manufacturing, data mining, and artificial intelligence, predictive maintenance control is proposed as a new type of maintenance paradigm only after analytical models predict certain failures or degradations. Equipment condition monitoring can reduce the likelihood of failures occurring. Successful technical diagnostics and monitoring of complex electromechanical subsystems and assemblies provides an increase in service life and reliability of the systems as a whole. Aim of research A general overview of maintenance aims and objectives, which mainly include detection and prevention of failures and malfunctions, maintaining performance within established limits, condition prediction in order to improve machine reliability and full use of its resource, cost minimization, maximization of availability/reliability and multi-criteria optimization. Object of research The object of the study is the technical condition of rolling bearings of rotating electric machines. The main defects that are characteristic of this object are analyzed. In addition, a practical and effective sequential preventive maintenance method for rotating electrical machines is proposed, consisting of four steps: feature generation and fault diagnosis selection, data dimensionality reduction and feature fusion, fault detection and diagnosis, and estimation of the remaining useful life of rotating electrical machine bearings. Vibration signal analysis (from the time domain waveform and spectrum of the original or derivative signal, characteristics can be calculated and their effectiveness in diagnosing a fault can be assessed). Research methods To verify the performance of the proposed method, bearing failure is simulated in the Simulink MATLAB module. The bearing failure is created by feeding the vibration perturbation into the shaft system. Results Based on the results of the simulation, a conclusion on the operability of the proposed method for investigating the technical condition of rotating electric machines is drawn.

МЕТОДЫ ПРОГНОЗНОГО МОНИТОРИНГА ТЕХНИЧЕСКОГО СОСТОЯНИЯ ЭЛЕКТРИЧЕСКИХ МАШИН

Relevance During operation of electromechanical machines, their specifications may change, which can lead to machine failures. Like all electromechanical equipment, rotating machinery is subject to many different adverse effects, such as thermal and environmental stresses and mechanical damage, which require the utmost attention. In industry, any machine or system failure or unplanned downtime can degrade or interrupt a company's core business, potentially resulting in significant fines and immeasurable loss of reputation. Existing traditional approaches to maintenance (maintenance by failure or regulation) suffer from some assumptions and limitations, such as high prevention or repair costs, inadequate or inaccurate mathematical degradation processes. Due to the trend toward smart manufacturing, data mining, and artificial intelligence, predictive maintenance is proposed as a new type of maintenance only after analytical models predict certain failures or degradations. Modern systems for assessing the technical condition of electromechanical equipment are decision support systems based on machine learning. Aim of research The aim of this research is to provide a general overview of maintenance goals and objectives, which mainly include cost minimization, availability/ reliability maximization, and multicriteria optimization. In addition, an overview of existing approaches for fault diagnosis and prediction in predictive maintenance systems is proposed, which include two main subcategories: knowledge-based approaches and traditional machine learning methods. Research methods Currently, many methods based on processing information from measurement transducers, which use acoustic and vibration sensors, current and voltage sensors, temperature sensors, and electromagnetic transducers, using machine learning techniques, have been developed for fault diagnosis and failure time prediction of electromechanical units. Results As a result, the paper presents a brief overview of the aims and approaches of a predictive maintenance system for electromechanical systems based on machine learning techniques used in various electromechanical equipment. An overview of various predictive maintenance methods is presented. An overview of existing approaches based on machine learning is given.

Implementation of Accounting Standards for Cryptocurrency Companies in Indonesia

The development of number of cryptocurrency startups around the world, including in Indonesia, is increasing every year, demanding business people to provide financial services by accepting the presence of cryptocurrency technology directly in the real world. The purpose of this study is to explore the application of the Statement of Financial Accounting Standards (PSAK) adopting International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) on cryptocurrency companies at the Indonesian National Indodax Company (Bitcoin Indonesia). This research method is descriptive qualitative with data collection methods using interview and observation techniques. The results show that the Indodax Company (Bitcoin Indonesia) uses IAS 2 inventory because the company's core business is in brokerage, which measures cryptocurrency inventory recorded at fair value after deducting costs to sell and is recognized in the income statement and reported in the Available for sale financial asset account. At the same time, the entity applies IAS 38 intangible assets in the measurement, valuation, and presentation of financial statements that refer to computer software and internet domains, not cryptocurrency assets in the form of coins and tokens. In addition, entities that measure and value cryptocurrency assets (cash and tokens) using financial instruments IFRS 9 Financial Instruments: Recognition and Measurement are calculated and recorded as financial assets at fair value through profit or loss (FVTPL).

Internal communication and employee performance: The mediating role of motivation

Internal communication is an important function in an organization in relation to human resource management. This research examined the employee-perceived internal communication and investigated the role of internal communication and employee motivation on employee performance. The mediating influence of motivation in influence of internal communication on organizational performance was also investigated. Questionnaires were distributed to employees of BPJS Malang City to collect the data of this study. Path Analysis was performed to analyze the data, which results revealed that internal communication could improve employee performance. Internal communication was also found to enhance employee motivation, which in turn would affect the employee performance. Internal communication will encourage organization-employee relationship. Employees should understand the company's core business to make them aware of the targets to achieve. Through effective internal communication, employees would have better comprehension on the importance of their performance. Future researchers are encouraged to examine job satisfaction as a mediating variable in the relationship between internal communication and employee performance

ДОСЛІДЖЕННЯ ІНВЕСТИЦІЙНОГО ПОТЕНЦІАЛУ АКЦІЙ КОМПАНІЙ ЦИРКУЛЯРНОГО БІЗНЕСУ

In the last decade, a number of scientists around the world have been considering the transition from the traditional linear to circular economy, seeing it as part of the fourth industrial revolution, which should result in significant improvements in the sustainable use of natural resources. Many large international corporations are gradually beginning to engage in this transition by developing and implementing technologies for circular business in their production chains. The article considers the investment potential of shares of such companies; how attractive shares of corporations working with circular business technologies may be for investors. In order to achieve the aim of the research the authors consider several from major international corporations operating in technologies of both old linear economy and circular economy. Using the technical possibilities of the Internet resources a number of charts reflecting comparative dynamics of share prices of each of the studied companies with the Standard & Poor's – 500 index of the stock market have been constructed and analysed. It also studied the comparative dynamics of each from those companies’ share price with the relevant sector indices. It is concluded that, in the current environment, the circular business of large international corporations does not yet have any significant impact on the change in the share price of the relevant company. The company's core business is still decisive. Therefore, when looking for stocks with significant investment potential, the extent of a company's involvement in the circular economy may be taken into account, but this factor should not be decisive for the investment decision. The development of the circular economy is very important from the point of view of the social and environmental impacts of human economic activity, but there is currently no reason to claim that circular business companies have high investment potential. This issue requires further research.

НЕОБХІДНІСТЬ АУТСОРСИНГУ В ДІЯЛЬНОСТІ АУДИТОРСЬКИХ КОМПАНІЙ У СУЧАСНИХ ЕКОНОМІЧНИХ УМОВАХ

The article dwells upon the peculiarities of the use of outsource services in the activities of audit companies. In current economic environment, it is increasingly difficult for audit companies to stay in the audit services market. Competitive environment leads to implantation of new types of services such as outsourcing services. The article is concerned with the essence of the concept of "outsourcing" and variety of its interpretations provided by foreign and domestic scientists and experts. It was revealed practically that outsourcing is the performance of certain functions of business operations by outside service, such as an audit company or an outsourcing freelancer. The aim of outsourcing using and its main types have been specified. The authors of the article have considered the options of outsourcing services for audit companies and their advantages and disadvantages. The specific benefits and negative consequences of using outsourcing services are determined in each case: for each pair of companies and each type of outsourcing. The global outsourcing market has been reviewed and main audit companies, that are the largest providers of outsourcing services, have been identified. In Ukraine, outsourcing is used mainly in the financial, HR, IT and legal sectors. However, one of the most popular sector is accounting outsourcing services. Accounting outsourcing includes services for restoration and maintenance of financial and tax records, tax optimization, compilation report. The business losses due to the COVID-19 pandemic have been assessed from the perspective of outsourcing services using. It is revealed that in terms of the coronavirus pandemic the lifeline for entrepreneurs was outsourcing of non-core functions and business processes, and that allows staying afloat, keeping profits and fully focusing the company's core business. In terms of the coronavirus pandemic, only those companies that operate in the most efficient way, reducing operating costs while maintaining the high quality of their products and services, survive and succeed. The author is convinced that outsourcing is a novel technology of managing companies’ resources in various fields, including audit activities. The advantages that encourage entrepreneurs to use outsourcing services provided by audit companies are liability for violating the rights and obligations of the parties regarding the information confidentiality, and the fact that audit companies employ highly qualified specialists.

Meaningful practice creating shared value as a contribute to sustainable development goals

This study aims to reveal the meaning of the Creating Shared Value (CSV) practice as a contribution to Sustainable Development Goals (SDGs) at PT Pupuk Kaltim (PKT) with a case study approach. CSV with Corporate Social Responsibility (CSR) is a concept that does have the same umbrella, which is a charity to the community and contributes to SDG's but in practice these two concepts are different. The difference lies in the value generated. CSV provides significant value to the company in the form of profit in the form of reducing the company's activity costs and is related to the company's core business products so that the value that arises to the company is not only a good view (image) by the community. When implementing the CSR concept, the company focuses on carrying out charity actions to the community so that it creates a good corporate image by the community and does not focus on the value that is generated profitably to the company. PKT has implemented CSV practice with the floating net cages (FNC) program. The KJA program carries out activities with the grouper and lobster cultivation program and PKT's business activity is in the field of fertilizers. FNC has provided a good view from the community for PKT but the FNC that is claimed by PKT as an FNC Program is not yet a concept of CSV. In practice, FNC is more appropriate to say CSR because it has not provided profit value for PKT.

The Usage of Modern Instruments of Business Planning Administration for Small Enterprises: A Case Study Analysis

Small and medium-sized enterprises are an important part of the economy of every country. These enterprises operate in a highly competitive environment and are especially exposed to rapid changes in the business environment. Therefore, one of the most important issues which they face is effective business planning (BP), especially in relation to the projects which they carry out. This is because business planning provides an opportunity to take the risks inherent in the activities of an enterprise into account and providing coordination of the production and economic processes. Given these facts, our study analyses the process of business planning administration in small enterprises. Its main aim is to develop methodological recommendations for the administration of business planning processes through the utilization of innovative tools. It should simplify the business planning of projects and make it more relevant and effective. The administration of business planning is presented as a complex process which is modelled with the utilization of a roadmapping approach. We suggest using the business canvas as one of the milestones of the model, which is especially suitable for the visualization of future business plans. A single case study analysis based on the private company Gal-Exim PC and its innovation project planning was chosen as the research method. The company's core business and main innovation projects are in sphere of commercial real estate operations. Our analysis confirmed that the proposed model may be regarded as an effective instrument of BP in small enterprises. It has a universal nature and therefore may be utilized in other companies as well.Implications for Central European audience: Our study is based on the most modern world trends and practical research in sphere of business planning. The proposed model has a universal nature and may be easily implemented in any European small or medium-sized companies. The proposed roadmap of business planning administration includes instruments which are accessible and may be used by companies regardless of the region. We deliberately based our analysis on the company which provides a variety of innovative projects with utilization of European and world trends in sphere of commercial real estate operations, thus we assume that the suggested study may make a positive contribution to the Central European business environment generally.

INFLUENCE OF A TURBULENT ENVIRONMENT ON THE MANAGING OF A MINING ENTERPRISE

Motivation: It should be taken into consideration that classical planning methods that worked well at the end of the 20th century are often not effective in a turbulent environment. The article presents planning methods that can be applied in such conditions.
 Problem statement: The article presents methods of planning of the future in a variable environment. There are constant changes in the macro-environment of mining enterprises in Poland. Therefore, it is extremely difficult to create an appropriate plan for the company's core business i.e. extracting hard coal deposits.
 Approach and results: The scenario-based planning and SARIMA mathematical model and the forecasts for the demand for hard coal based on them have been presented. The scenarios are used to verify the potential company strategy.
 Conclusions: It should be noted that the strategy must be created in several variants which finally will enable the company to choose the one that will let it gain a competitive advantage. Only then will the mining company be able to stay ahead of its competitors. In order to allow decision-makers in companies to make the right decisions, appropriate methods and tools for managing the company should be used.

Sustainability Management in Practice: Organizational Change for Sustainability in Smaller Large-Sized Companies in Austria

To facilitate organizational change and improve corporate sustainability, this study identifies change agents and factors driving sustainability integration in the core business of companies. The survey on corporate sustainability management in Austria, with focus on smaller large-sized companies (revenue of €50–300 million, at least 250 employees), fills the research gap between studies commonly concentrating on the largest companies and on SMEs. Companies mainly established integrated cross-departmental sustainability management teams, which required change in the routines of employees and change agents to drive the projects. Possible locations of these change agents were identified. We drafted a process model that visualizes how change agents multiply their impact on the organizational level through interaction. The main sustainability implementation drivers are rooted in personal and organizational values, e.g., organizational culture and personal interest; the main inhibiting factors are the lack of resources or locked-up resources, originating from organizational inertness and other barriers to change. Companies can reduce the barriers by, e.g., providing extra resources in role and routine adaption phases and creating incentives to use sustainability-related skills. Austrian companies focus on established environmental and energy management topics. To implement themes that do not necessarily bring financial return, adopting paradox perspective on tensions between conflicting objectives might be useful.

IoT security: could careless talk cost livelihoods?

The rise of the Internet of Things (IoT) promises exciting capabilities for business but could it usher in risks that are difficult to assess, let alone deal with? In a world where companies can use Alexa to help set up new office IT, could unsecured IoT systems be the equivalent of careless talk giving away company secrets – and endangering livelihoods? The rise of the Internet of Things (IoT) promises exciting capabilities for business but could it usher in risks that are difficult to assess, let alone deal with? Unsecured IoT systems could be the equivalent of careless talk giving away company secrets and endangering livelihoods. IoT-enabled devices behind cutting-edge consumer and business products must talk securely to the company's core IT and business systems. Without this secure conversation, IoT's learning capabilities could simply enable hackers to carry out wider-scale attacks, explains Marc Sollars of Teneo.

Corporate social responsibility in supply chain management: a new model approach

Corporate social responsibility (CSR) remains a widely acknowledged business philosophy. However, there are situations when socially responsible activities are incorporated without due attention to the consequences for business operations. It is important to pursue alternatives, such as outsourcing, in the process of deciding how to manage CSR and assessing the impact on supply chain management (SCM). We studied the implications of incorporating non-governmental organisations (NGOs) in SCM to achieve CSR goals. A market survey was conducted in Poland among 100 medium-sized and large local and international enterprises. The model developed to test the research questions was specified and estimated using structural equation modelling (SEM). Our research suggests that a CSR framework should be integrated into the company's core business operations as a full member of its SC. NGOs operating within SCs, owing to their experience and knowledge of market 'games', could help identify opportunities for business development.

An analysis of industrial districts and Triple Helix of innovation – a regional development experience in the south of the state of Rio de Janeiro

This work consolidates a research effort to analyze 70 years of economic development in the region of the Paraíba do Sul River, in the south of the state of Rio de Janeiro, Brazil. The paper follows the trajectory of the leader company, steelmaker Companhia Siderúrgica National, and its relations with other local actors, such as government and universities. The research question investigates if the steel market is still the company's core business and its evolution in the competitive global production network. This work introduces a different exploratory approach, analyzing productive networks using an industrial district typology and the linkages based on the Triple Helix of university–industry–government. The literature review and case study show the first transition, after the privatization process in the nineties, transforming a state-owned company with a focus in the national market into a transnational corporation with business on four continents. The second transition, from the steel market to a globally integrated production chain of mining and steel is underway. The region's configuration migrated from a company town in a state-centered model to a central-radial arrangement. The second migration to a satellite platform is in progress. Regarding technology development, the company's strategy changed from in-house research and development to buying technology. There is a recent effort to recreate interaction space with universities.

The impact of congruence between the CSR activity and the company's core business on consumer response to CSR

The focal action in CSR campaigns can be either related or unrelated to the company's core business. Previous research has revealed mixed results as to which option produces the most favorable consumer responses. In this paper, we try to shed some light on the effect of congruence between the CSR campaign and the company's core business on consumer response, while identifying skepticism toward CSR as the key moderator that can help us assess its impact. The data confirm our hypotheses and clarify the role of congruence in CSR initiatives. Both academic and managerial implications are reported and discussed.

Commonwealth Edison: The Use of Social Media in Disaster Response

After a massive storm hit the northern Illinois service area of electric utility Commonwealth Edison on July 11, 2011, more than 900,000 customers were left without power during a hot, humid summer. ComEd crews and reinforcements from more than a dozen other states worked for days afterward to restore service. Meanwhile, the company's months-old social media strategy faced its first major test. The eChannels social media team, part of ComEd's customer operations division, worked around the clock to respond to posts from customers on social networking sites Facebook and Twitter. At a time when the company faced public debate and criticism over its plan to raise electricity rates, in part to invest in smart-grid upgrades, engaging directly through social media was a way to strengthen relationships with customers and the general public, consistent with an important corporate goal: “Keep the lights on and information flowing.”After discussing the case, students will: Develop an appreciation for the role social media can play in shaping a company's reputation Understand how companies can use social media to engage customers directly in order to protect their reputations Understand the role these interactions with customers can play during a crisis situation Recognize the added reputational risk when a company's core business is directly impacted by a natural disaster

The Evolution of CSR: An Integrated Approach

Corporate social responsibility (CSR) has been traditionally interpreted as the sum of practices, policies, and strategies linked with social and environmental benefits that corporations implement to serve multiple stakeholders’ interests simultaneously. The evolution of meanings and implications of traditional and contemporary interpretations of CSR, focuses on integrated CSR as a breakthrough approach to business, society, and environment. Several theories and trends that integrated CSR is rooted in are: stakeholder theory, ethics, value creation, and the increasing global call for sustainable growth and development, under both financial and ethical perspectives. Selected case studies will serve as empirical evidence of processes, practices, and strategic tools that can allow the integration of CSR into the company core business and will open avenues for further discussions and practical innovative developments in CSR strategy to both academics and practitioners.