2014 : Corporate social responsibility practices in Indonesia: Intermediary matters-case studies from Indonesia

Dr. Dra. Agnes Tuti Rumiati M.Sc.
Ir. Eddy Setiadi Soedjono Dipl.SE.M.Sc, Ph.D
Ir. Lantip Trisunarno MT.
Dr. Ir. Janti Gunawan M.Eng.Sc.., M.Com.IB


Abstract

Corporate social responsibility (CSR) is increasingly attracting the attention of companies operating in Indonesia (Koestoer, 2007; Indonesia Business Link, 2011), including the Government of Indonesia. Simon (2009) finds that CSR has been used as a strategic tool to obtain legitimacy and operate successfully in Indonesia. Although there are regulations in place, problems exist regarding the interpretation of the regulations, and how they should be implemented remains unclear.Recent studies have found a trend of CSR moving from philanthropy and non-integrated activities to such activities being included within a firm’s value chain, and, therefore, enhancing the strategic position of the company in the market (Indonesia Business Link, 2011; Bappenas, 2012). However, other studies have tended not to support the above position. These studies have found that the implementation of CSR programmes in Indonesia …