Abstract

Banking industry encounters some risks that have to be anticipated. One of the risks is reputation risk which has been considered crucial due to its ease to happen uncontrollably because some of the causes come from external perception on the banks. To maintain banks’ reputation, a program considered powerful is doing corporate social responsibility (CSR). The programs of CSR are expected to leverage and improve the banks’ image and reputation. Anyhow, many research revealed that CSR programs exposed by companies are skeptically perceived by public that consider the CSR programs as of more promoting the companies instead of giving helps to public. This gap lays on how banks are able to communicate their CSR programs appropriately showing that they deliver altruistic programs and have done them with credibility. This research is aimed at developing model of CSR information to maintain and improve banks’ reputation by testing the effect of altruism, credibility, CSR information quality on bank’s reputation. The variables are controlled by the range on initial capital and the bank business coverage. The respondents are personnel who are in charge of CSR and are the members of Corporate Forum for Community Development (CFCD). They have to look into the bank CSR report first before responding the online questionnaire. Data were processed using Structural Equation Modeling of Warp-PLS 6.0. The result showed that altruism and credibility significantly affect CSR information quality which then CSR information quality also significantly affects the bank reputation. The result is in line with previous research especially those describing the implementation of bank CSR which have given solution to the sectors of education, environment, employees, donation, health, disaster fictims assistance, and bank product development.

Keywords

Altruism, credibility, CSR information quality, bank, reputation