Influence of Implementation Chain of Custody Forest Management System FSC-STD-40-004 V3-0 to Business Performance of Paper Industries in Banten Indonesia

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.