Inclusive Business: Employees’ Perception and Impact on Corporate Image and Business Performance

Abstract

Inclusive business practices have emerged as a strategic approach to achieving both social and economic goals, particularly within state-owned enterprises in developing countries. However, employees’ perception of such practices and their implications on corporate image and business performance remain underexplored. Addressing this gap, this study aims to assess employees’ perceptions of inclusive business practices and analyze their influence on corporate image and business performance. A quantitative, explanatory survey was conducted among 100 employees of PT Kilang Pertamina Internasional RU IV Cilacap. Simple random sampling ensured  proportional representation across organization level. Data were collected through structured questionnaires and analyzed using bootstrapped path analysis. Results show that employees’ positive perceptions of inclusive business practices significantly enhance corporate image, which in turn positively impacts business performance. Furthermore, inclusive business practices exert a direct positive effect on performance. These findings underscore the strategic value of inclusivity as perceived internally, particularly within state-owned enterprises in  oil and gas sector facing performance and legitimacy challenges. It is recommended that the company institutionalize inclusive values not only meet ethical or regulatory expectations, but also to improve employee engagement, reputation, and operational excellence. Future research could incorporate qualitative insights for a more comprehensive understanding of inclusive business dynamics.