| This research explores the basic issue about whether the good corporate ethics statements and corporate social responsibility (CSR) can create positive consumer responses on the company and its products. We examined the proposed model that links corporate ethics, CSR, corporate reputation, and perceived risk in the case of controversial products that offers by company, especially on cigarette products. As one of the doers in Indonesian tobacco industry, PT. Djarum implemented many CSR programs including educational initiatives. This research was conducted in the Faculty of Economics and Business Diponegoro University as a recipient of PT. Djarum, that implemented CSR educational initiative through “Bakti Pada Negeri” program.Research was conducted using a survey method through distributing questionnaires to209 university students of Faculty of Economics and Business Diponegoro University. The sampling method which was used for this research was a non-probability sampling with convenience sampling technique. By using the structural equations model with AMOS software to examine the proposed model, this research indicated that the more well-defined of corporate ethics statements lead to better evaluation of CSR activities;the better evaluation of CSR activities lead to good corporate reputation, but did not lead to lower perceived risk; the good corporate reputation lead to lower perceived risk; and the more well-defined of corporate ethics statements did not lead to lower perceived risk. Based on Sobel test results, this research indicated that perceived CSR has a significant role in enhancing corporate reputation which in turn reducing perceived risk. |