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INTRODUCTION
THE FUTURE
KAPITALISM THEORY .
capitalism is not only
focused on economic
issues but also includes UU No 40 Tahun
CLASICAL
social and 2007
THEORY environmental elements
called sustainable the government
“the only duty of the society (Thorow 1996) requires
corporation is to make companies to
profit” carry out social
(Friedman, 1970) responsibility
INTRODUCTION
Brand Image Customer Loyality

Sustainable Bussines

Bussines Social Community

World Activity
Sustainable Society

Social Responsibility Marketing (SRM) Corporate Social Responsibility (CSR)

an ongoing commitment by the business community to act ethically
a marketing concept that invites companies to consider and contribute to the economic development of the local
social and ethical aspects in their marketing activities community or the wider community, together with improving the
(Kotler & Keller, 2016) living standards of workers and their families (Wibisono (2007)
INTRODUCTION

CSR-SRM

PT Astra International Tbk (Astra) is one of the largest

diversified conglomerates in Indonesia. This investment
holding company is often regarded as the barometer of the
Indonesian economy due to its presence in various sectors
(automotive, agribusiness, heavy equipment, mining, energy,
financial services, information technology, and infrastructure
& logistics)
Kampun Berseri Astra program, which is a
program to develop a village with a clean,
green environment, healthy, education and
productive community

Rp. 330 T (2017)

OBJECTIVE
SOCIAL
RESPONSIBILITY
MARKETING 3.

1.
BRAND 5. CUSTOMER
IMAGE LOYALTY
2.

CORPORATE 4.
SOCIAL
RESPONSIBILITY
METHODE

SAMPLING DATA COLLECTION DATA ANALYSIS

used non-probability used questionnaire used SmartPLS software that

sampling convience instruments given to 110 was run on computer media.
sampling method, respondents who have PLS (Partial Least Square) is a
the researcher did not passed the screening variance-based structural
stage equation analysis (SEM) that
have other
can simultaneously test
considerations except measurement models as well
based on convenience as structural model testing.
 RESULT
Structural model (inner model)
The description of latent variables and their manifest variables are
as follows:
• Exogenous latent variables Social Responsibility Marketing (X1)
has seven manifest variables (indicators) namely, paying attention
to welfare expressed by SRM1, education expressed by SRM2,
responsible advertising stated by SRM3, non profit oriented
expressed by SRM4, social participation expressed by SRM5 ,
social activity campaigns are declared by SRM6 and provide
benefits expressed by SRM7.
• Exogenous latent variables Individual Corporate Social
Responsibility (X2) has six manifest variables (indicators) namely,
social care is expressed by CSR1, public welfare is expressed by
CSR2, positive impact is expressed by CSR3, benefits can be felt
expressed by CSR4, environment is expressed by CSR5 and
development stated by CSR6.
• Endogenous latent variables Brand Image (Y1) has six manifest
variables (indicators) namely, committed expressed by BI1,
proffesional expressed by BI2, successful campaigns declared by
BI3, trustworthy expressed by BI4, caring expressed by BI5 and
seriously raising stated prosperity by BI6.
• Endogenous latent variables Customer Loyalty (Y2) has five
manifest variables (indicators) namely, considering stated by CL1,
using stated by CL2, wanting to buy back stated by CL3,
recommending stated by CL4 and saying positive things stated by
CL5.
RESULT
Measurement model (outer model)
Evaluation of the measurement model consists of
three stages namely convergent validity test,
discriminant validity test and composite reliability
test.

1) Convergent Validity Test

Validity testing for reflective indicators can be done
by using the correlation between the indicator
score and the construct score. Measurement with
reflective indicators shows there is a change in an
indicator in a construct if other indicators in the
same construct change. The results of calculations
using the smart PLS 3.0 computer program can be
seen in Table 1.

According to Chin (1998) a correlation can be said

to meet the convergent validity if it has a loading
value of greater than 0.5. The output shows that
the loading factor gives a value above the
recommended value that is equal to 0.5. So that
the indicators used in this study have met the
convergent validity.
RESULT
2) Discriminant Validity Test
Reflective indicators need to be
tested for discriminant validity by
comparing the values in the cross
loading table. An indicator is
declared valid if it has the highest
loading factor value to the
intended construct compared to
the value of the loading factor to
other constructs.
RESULT
3) Reliability Test
Sarwono and Narimawati (2015) stated that a latent variable can be said to have good reliability if the composite
reliability value is greater than 0.7 and Cronbach's alpha value is greater than 0.7.

Table 3 shows that all latent variables measured in this study have Cronbach's Alpha and Composite Reliability
values greater than 0.7 so that it can be said that all latent variables are reliable.
RESULT
Weighting scheme (weight relation)
The weighting scheme in SEM with PLS is carried out by conducting a significance test through the R-squared
(R2) test and estimation of the path coefficient.

1) Testing R2
The output for the R2 value using the smartPLS 3.0 computer program is shown in Table 4.6. The R-squared (R2)
value is used to measure how much influence the particular independent latent variable has on the dependent
latent variable. R2 value of 0.67 is categorized as substantial. R2 value of 0.33 is categorized as moderate, R2
value of 0.19 is categorized as weak, and R2 value of> 0.7 is categorized as strong (Chin, 1998)
RESULT
2) Estimation of the path coefficien
 DISCUSSION
SOCIAL RESPONSIBILITY
MARKETING
PT. Astra Internasional shows its commitment to provide
added value to the community, increasing assistance
through training and education to the community can be
well received by the community. The results of this study
also support the theory put forward by Kotler and
Armstrong (2014), namely: "Marketing as a process where
companies create value for customers and build strong
customer relationships to get value from customers in
return".
Social activities carried out by PT. Astra International can cause a
positive rating from consumers so that it can improve the company's
image in the public eye This study result was appropiate with theory that
said a high value of the CSR perception defines an association to the
brand held in the consumer memory (Keller, 1993). The positive
perceived experience, for a customer who does care about service
companies taking social responsibility, will create feelings of trust,
affection, and closeness to this specific brand that reflects the
customer’s core emotional and social values (Gronroos, 2007)
CORPORATE SOCIAL
RESPONSIBILITY
Social Responsibility variable does not directly affect Customer Loyalty
through Brand Image. Long-term CRM campaigns do indeed affect
customer loyalty, this is because CRM campaigns may not be able to
disrupt the relationship between customers and the product image that is
highly engaged by customers. In addition, there are allegations that
consumers and the public are more likely to see PT. Astra International
as a stand-alone brand, and social marketing activities are not directly
related to customer loyalty.
BRAND CUSTOMER
IMAGE LOYALTY
Corporate Social Responsibility variable
has an indirect effect on Customer Loyalty
through Brand Image. PT. Astra
International, which indeed prioritizes
CSR as one of the company's
responsibilities to the community, does
not yet encourage the loyalty of
consumers and the community directly,
Brand Image variables have a significant effect on
Customer Loyalty. The results of this study indicate but the social care undertaken by PT.
the effect of a well-managed Brand Image will also Astra International has a very long role to
have a good effect on consumer loyalty to a brand. play in customer loyalty.
The results of this study are in line with the
explanation given by Ogba and Zhenzhen (2009)
which says that a good Brand Image will also have
a good effect on customer loyalty.
SUMMARY
1. Social Responsibility Marketing has a positive influence on Brand Image.
2. Corporate Social Responsibility has a positive influence on Brand Image.
3. Social Responsibility Marketing does not have a direct positive influence on
Customer Loyalty.
4. Corporate Social Responsibility does not have a direct positive influence on
Customer Loyalty.
5. Brand Image has a positive influence on Customer Loyalty.
Thank you