Corporate Social Responsibility In Indonesia Research Articles

ENVIRONMENTAL REGULATION IN CORPORATE CSR PRACTICES IN INDONESIA

This article explores the influence of environmental legislation on corporate social responsibility in Indonesia. It aims to clarify the regulatory framework surrounding corporate social responsibility, assess how failure to adhere to environmental laws affects corporate reputation and performance, and identify the difficulties companies encounter while implementing corporate social responsibility. The research adopts a normative legal perspective, involving a thorough examination of pertinent laws and regulations, including the 1945 Constitution, Law Number 40 of 2007 concerning Limited Liability Companies, and Government Regulation Number 47 of 2012. Data gathered through desk research and descriptive legal analysis provides a detailed understanding of the relationship between legal frameworks and corporate social responsibility practices in Indonesia. The findings indicate that the corporate social responsibility regulatory framework encourages companies to meet environmental legal requirements, positively impacting corporate reputation. Conversely, non-compliance can damage reputation and public perception, consequently affecting financial outcomes. Companies also face various obstacles in implementing corporate social responsibility, such as insufficient regulatory support and limited resources. Recommendations for companies include enhancing education on corporate social responsibility and fostering collaboration with stakeholders to develop sustainable business practices. These insights are valuable not only for Indonesia but also for other nations examining the link between environmental legislation and corporate social responsibility.

Looking at the Possibility of Implementing Green Economy Policies Through the Legal Framework of Corporate Social Responsibility

Green economy policies must be encouraged so that welfare can be improved without sacrificing environmental sustainability which is the capital of the lives of future generations. This paper aims to see the possibility of implementing a green economy through the legal framework of corporate social responsibility (CSR). The method used is a normative legal research method. The results show that the implementation of the green economy concept within the CSR framework can only be implemented if regulatory weaknesses to the implementation of CSR in Indonesia can be overcome, including strengthening legal instruments, the existence of sanctions, expanding the subject of CSR implementation, the establishment of assessment and supervisory bodies so that the implementation of CSR for entrepreneurs is carried out optimally and consistently, to CSR technical references.
 Keywords: Green Economy; Corporate Social Responsibility; Framework.

Corporate Social Responsibility Regulation in Indonesia and a Critique of the Milton Friedman Theory

Academically, there is no agreement on corporate social responsibility (CSR) regarding whether managers are subject to shareholder or stakeholder theories. Academics, judicial officers, regulatory agencies, and professionals have long debated the meaning of corporations and their goals. This study examines the norms of CSR in Indonesia and serves as a critique of Milton Friedman’s theory. The study used normative legal research method. The data were collected through related literature and divided into three legal materials, namely primary, secondary, and tertiary. The legal materials obtained were analysed and presented qualitatively to answer the problem. CSR in Indonesia is regulated in several existing arrangements, especially in the law on limited liability companies, investment, plantations, oil and gas, mineral and coal mining, geothermal, and state-owned enterprises. These regulations confirm that CSR is mandatory in companies, and companies that do not comply will be given strict sanctions. The regulations for CSR in Indonesia are in contrast to Milton Friedman’s theory, which states that CSR is solely seeking for company profits or shareholder wealth maximization Corporate, social responsibility, mandatory, shareholder

THE IMPLEMENTATION OF MANDATORY OR VOLUNTARY FOR CORPORATE SOCIAL RESPONSIBILITY: A SYSTEMATIC LITERATURE REVIEW

CSR (Corporate Social Responsibility) is the responsibility of a company for the impact of their decisions and activities on society and the environment through open and ethical behavior. The existence of companies in the midst of society contributes to the national problem of unemployment. The implementation of CSR in Indonesia is still not transparent whether it is voluntary or mandatory. However, this research does not only discuss the Indonesian side, but globally in several countries from 2007-2023. Therefore, this research aims to find out the implementation of mandatory or voluntary CSR in Indonesia and some countries. The method used is systematic literature review. The result of this research is voluntary CSR is still commonly used in various countries, including developing countries, even though some countries have regulated mandatory CSR by law. However, voluntary CSR is still practiced because the law is not enough for companies to implement mandatory CSR. Companies will be more stable if they implement mandatory and voluntary CSR in a balanced way in order to consider the interests of stakeholders, the company, the environment and society.

The Influence of Business Ethics, Organizational Governance, and Corporate Social Responsibility on the Financial Performance of Companies Listed on the Indonesia Stock Exchange

Sustainability issue nowadays requires companies in Indonesia to act strategically and not only focus on financial performance, but also social and environmental aspects. Corporate social responsibility is seen as an obligate and one way to comply with the business ethics value as generally required by society. However, the differences in the company’s stakeholders’ needs could cause variation of corporate governance system, which sometimes does not follow the ethics value. This research aims to look over the effect of ethics (generally) to corporate governance practices and implementation of corporate social responsibility in Indonesia, also towards the company’s financial performance. The sample of this research is the companies listed in the IDX80 index of Bursa Efek Indonesia. The data collection technique used is the purposive sampling method and data collected will be analyzed using linear regression method. This research proved that ethics affecting the corporate governance system and corporate social responsibility practices, but there’s no prove that corporate governance system and corporate social responsibility affect the corporate financial performance.

CSR implementation of palm oil plantations through the integrated farming system program in empowering local farmer groups

The concept of corporate social responsibility (CSR) emerged in response to the development of sustainable corporations that prioritize sustainable development practices. The Sintang District Government's economic improvement program aims to boost community income by developing the UMKM sector (Micro, Small, Medium Enterprises). To integrate palm oil plantations with livestock, the local government initiated this effort. The research method used is a descriptive study - with qualitative data types through data collection techniques conducted utilizing interviews, observations, and literature studies. The study found that the application of CSR in Indonesia does not fully align with the legal definition of CSR. The implementation of CSR is primarily focused on short-term aid provision to local communities. The integration of livestock farms has not been implemented by all plantation companies, and the ones that do exist are suboptimal. Even though Sintang Regency cannot meet the local beef needs, farmers are only capable of meeting 20-30% of the annual demand. Consequently, to meet the demand, the government must purchase livestock from outside Sintang district and even from outside the province of West Kalimantan.

Community Development Model by Corporate Social Responsibility in Indonesia: A Systematic Literature Review

Community empowerment is one form of implementation of corporate social responsibility (CSR) carried out by companies. In its implementation, there are various models and strategies that can be used to support implementation. In Indonesia, the study of community empowerment by companies has become a new tradition in the development of CSR models. In the last decade, various models of community empowerment by companies have developed resulting from research related to CSR, especially those that examine community empowerment. This research is a systematic literature review to analyze the model of community empowerment by companies that are reviewed based on dissertation research sources published in the 2013-2020 period by Sebelas Maret University. There are 9 dissertation studies that were analyzed to find a synthesis of community empowerment models in corporate social responsibility programs. The majority of the studies were conducted in case studies with a qualitative approach. The findings of this study are that the model of community empowerment by companies in Indonesia is developed based on the “local context” and “actor relations” that exist within the scope of the community empowerment program.

PENERAPAN CSR DI PERUSAHAAN PERTAMBANGAN DAN PEMBANGUNAN EKONOMI BERKELANJUTAN DI KALIMANTAN SELATAN

Corporate Social Responsibility (CSR) is the process of communicating the social and environmental impact of a company's economic actions within a particular community group and in society as a whole. Sustainable development with a progressive business model defines a business concept that combines income and economic benefits with genuine social and environmental sustainability. Thus, sustainable development is related to CSR. CSR in Indonesia has been implemented by most companies in Indonesia but there are still many that are not on target. This study aims to determine the application of CSR in mining companies and sustainable economic development in South Kalimantan.
 This research is a descriptive research with a case study approach. The result of the discussion is that CSR has been implemented by mining companies in South Kalimantan. The programs that have been implemented are the provision of scholarships, MSME training, PAUD/ TK teacher training, student internship programs, and blood donations.

Implementation Of Corporate Social Responsibility In Indonesia In The Perspective Of Legal Theory

Corporate Social Responsibility has been regulated in Law No. 25 of 2007 on investment and Law No. 40 of 2007 on limited liability companies, but in practice it still causes many problems. The first problem is that the regulation does not regulate in detail the implementation of CSR. The second problem is the lack of clarity of the rules and mechanisms for monitoring the implementation of CSR itself. The results of this study indicate that the approach of reflexive legal theory can answer these problems, CSR can be required by the government to every corporation because CSR grows and develops in accordance with the development of business and market reactions, then the rules and mechanisms of supervision by requiring corporations to make reports to the public called social reporting (Social Reporting).

Corporate Social Responsibility in Indonesia: A Transformation of Local Wisdom Perspectives

This paper seeks to explore the motivation of management to conduct corporate social responsibility (CSR) activities and disclose it in financial reports from their understanding of local wisdom, using Indonesian companies as a case study. The methodology was carried out through several steps: 1) Survey method by sending questionnaires to selected companies; 2) Content analysis method to determine the scores of CSR disclosures based on the required disclosure standards; 3) Analyzing the results of the company's financial performance to its CSR activities. The empirical evidence proofing that CSR is the transformation of local wisdom into actions and strategies of the company even has not fully become the company's core program. But there are limitations of this study, including the subjectivity of respondents' views concerning the cost of CSR. In addition, it needs to be further clarified because interview (qualitative) data are still very limited. The paper enhances the altruistic attitude shown by the company's management about CSR implementation from their understanding of the local wisdom as a contribution. Therefore, it can be recommended to be a national CSR movement in terms of sustainable development in Indonesia for the next.

Kinerja Perusahaan dan Corporate Social Responsibility: Peran Moderasi dari Perusahaan Keluarga

Purpose - Corporate Social Responsibility (CSR) can be defined as a commitment and form of action taken by a company regarding social responsibility and the surrounding environment with the aim of improving the welfare of people's lives and strengthening relationships between stakeholders. The purpose of this study is to examine the relationship between firm performance and CSR moderated by family firm variables and firm size, leverage, and equity ownership concentration as control variables.
 Research Method - The sample used in this research is quantitative data with a purposive sampling technique. Based on the criteria, the number of samples collected is 240 samples from 48 companies in the period 2016-2020. The sample data is tested using panel data regression.
 Findings - The result of this study indicates that there is a significant negative relationship between the firm performance variable on CSR. The moderating variable, family firm, strengthens the relationship between firm performance and CSR.
 Implication - The findings of this study imply that the higher the firm performance and profits obtained from stakeholders, the company must also be more serious in paying attention to CSR issues, implement and disclose them following the demands of stakeholders instead of exploiting them more. Stakeholders must pay more attention, especially to family companies. Policymakers to evaluate existing regulations of CSR. They should encourage the implementation and disclosure of CSR in Indonesia, which will be beneficial for stakeholders and the company itself.

Implementation of Corporate Social Responsibility In Indonesia Based on Ius Positum And Islamic Principles

Corporate Social Responsibility (CSR) is a form of a company's responsibility to the community and the surrounding environment that are affected by the company's activities. CSR is a familiar term when viewed from a legal perspective, including in Islamic law. So far, there has been no alternative concept of CSR that has been extracted from the values contained in the culture and belief system, including Islamic teachings, even though the values built by each culture and belief aim to achieve community welfare. Based on this, this study aims to find out whether the existing Corporate Social Responsibility (CSR) concept follows the principles of Islamic law. Has Islam regulated this? So that the activities carried out by the company are of worship value for business actors. This is normative legal research that refers to primary, secondary and tertiary materials. The result of the study is that CSR is contained in the teachings of Islam; Islam has long been building a system of life-based on social principles and justice. Islam strongly supports CSR because it cannot be denied that business creates many unexpected social problems. As a result, it is the responsibility of the company and the company to fix the problem. This is natural because they need to explore various natural resources for business sustainability. Therefore, they must be responsible for the community and the environment in return.

Political affiliation types and corporate social responsibility (CSR) commitment: evidence from Indonesia

PurposeThis study aims to examine the association between political affiliation types and corporate social responsibility (CSR) commitment for listed companies in Indonesia stock exchange (emerging economy) from 2015 to 2017.Design/methodology/approachThe final sample of this research is 1,121 firm-year observations across industries, except the financial sector, because they are under different regulations. To estimate the association, ordinary least square regression is used. Also, the authors check our results using an alternative measure of political affiliations, additional control variables and the generalized method of moment model for endogeneity problems.FindingsThe result indicates that corporate political affiliations, particularly through military and industry-specialized people, have a significantly positive effect on CSR commitment. After testing for endogeneity problems, the findings remain similar.Research limitations/implicationsThis study implies to the literature by providing empirical findings on how different types of political connections, particularly affiliation through board members with the specifically industry-specialized person and military, influence CSR commitments. Also, the authors show an exchange relationship between government and affiliated firms as the primary external motivation for performing CSR in Indonesia. When investors, creditors and policymakers comprehend the political incentives behind CSR performance, it can enable them to create better business valuations and effective CSR strategies in developing countries. However, this study is subject to several limitations. First, the authors do not examine the effect of a different regime with different types of power. Second, the qualitative aspect of the association between political affiliation and CSR is not explored yet.Originality/valueThe authors investigate the impact of several types of political affiliations on the nonfinancial outcome (CSR) in the context of an emerging country where business practices are heavily influenced by political connections and the military’s dominance.

Does financial performance moderate the effect of CEO characteristics and stakeholder influence on corporate social responsibility in Indonesia?

This study aims to examine the effect of CEO characteristics and stakeholder involvement on CSR disclosure quality, with firm performance as a moderating variable. This study was conducted with the assumption that the analysis of human factors (in this case management) is often forgotten when analyzing CSR reporting. Thus, the upper echelon theory is used as the basis in this study. This study also provides a different measurement of CEO education, where CEO education is not only seen from the background of economic and business education, but also seen from the CSR certification followed by the CEO. The study's findings, based on data from Kompas-100 firms listed on the Indonesia Stock Exchange from 2018 to 2019, show that CEO tenure, CEO education, and stakeholder involvement all have a significant positive influence on CSR disclosure quality. However, CEO compensation has no effect on CSR disclosure quality. Furthermore, the firm's financial performance was proven to moderate the positive influence between CEO tenure and CEO education on the quality of the firm's CSR disclosure, but failed to moderate the effect of CEO compensation and stakeholder involvement on the quality of the firm's CSR disclosure.

Corporate Social Responsibility and Earnings Management: The Moderating Role of Corporate Governance

Objective – This study investigates the relationship between corporate social responsibility (CSR) and earnings management (EM) with corporate governance (CG) as the moderating variable.Design/methodology – This study uses data collected from public companies listed in Indonesia Stock Exchange which include the audited annual reports and published sustaina-bility report during the year 2016 – 2019. The regression model was used to estimate the co-efficient of EM and CSR.Results – This study finds EM has an insignificant negative relationship with CSR and CG as a moderating effect. This indicates that the implementation of CSR in Indonesia does not affect EM with the involvement of CG as moderating variable. CG is playing an important role in monitoring the management so that managers do not override the company’ interest. Thus, CG has an effort to maintain the stability of interest between the stakeholders and managers.Limitation/Suggestion – This study is limited in its sample size resulted from the una-vailability of some annual reports and sustainability reports. The findings of this study has implications for company managers, and shareholders. It assists the company management to develop and implement strategies that will strengthen the CG structure, especially in de-veloping countries, to protect shareholders and increase stock exchange confidence. It also contributes in enhancing the previous literature research on the relationship between CSR and EM moderated by CG by showing how CG can influence the relationship between CSR and EM.

Corporate Social Responsibility (CSR) Efficiency Approach with the Establishment of a State Institution Managing Funding and CSR Programs

<p>CSR is an activity that provides broader benefits in various social aspects such as education, health, community empowerment or environmental preservation. CSR actions applied as a strategy will only cause irregularities in the use of funds owned by the company which can trigger to damage to the company's financial performance. This is thought to be due to the fact that there are quite a lot of funds budgeted with the CSR implementation which is not supervised, which causes inefficiency. This study aims to determine and analyze the provisions of the laws and regulations that govern CSR related to the obligations of Limited Liability Companies in the Indonesian legal system and to find out and analyze the implementation of company obligations to implement CSR in Indonesia and find solutions to corporate liability arrangements such as Limited Liability Companies (PT), Enterprises. Micro, Small and Medium Enterprises (UMKM) and other businesses carry out CSR to be useful in accordance with that CSR. The approach used is the Legislative Law approach and the case approach. From the research results it is known that 1). CSR regulations concerning the obligation of PT to implement it in the Indonesian legal framework are regulated in several laws but there are 2 (two) laws that specifically regulate CSR but the two laws are inconsistent with regard to sanctions if these obligations are violated, 2) Implementation of PT obligations implementing CSR in Indonesia is a program carried out by the company that is not in accordance with the community needs, is carried out individually, is moving and it’s not sustainable, there is no provision that regulates the amount of funds and there is no supervision from the local government in managing CSR. The occurrence of overlapping laws and regulations so that the implementation of the CSR program does not match the policies issued by the local government. CSR funds are misused and even corrupted by local officials and there is no evaluation by the company because it is more concerned with profit in carrying out CSR. 3). Regulating company obligations such as Limited Liability Companies (PT), Micro, Small and Medium Enterprises (MSMEs) and other businesses implementing CSR so that it is useful, it is necessary to establish a state institution that manages CSR and accommodates the companies’, government’s and society interests so that the CSR program can run efficiently, precisely targeted and continuously.</p><p> </p>

The Dilemma of Corporate Social Responsibility (CSR); Case Study of PT. Inco

Since the CSR discourse has been widely discussed, the debate about the concept of CSR as an expression of moral responsibility and sensitivity to the social and environmental world has received resistance from some circles. The reason is that some people are trying to avoid CSR obligations. This paper talks about how the discourse and thinking about CSR struggles. Is CSR a voluntary activity for the company or is it an obligation (mandatory)? Then the authors describe the Indonesian context of CSR. And before the conclusion, the author tries to describe a case example of a CSR program run by a company in Indonesia and tries to analyze it from a human security perspective. As a result, from a human security perspective, the concept of CSR in Indonesia is still a problem. The cause, scholars are still trapped in efforts to formulate a detailed definition of CSR. As a result, practically the CSR program has not been seen as a humanitarian program. And it is still limited to a technical matter of fulfilling the company's procedural obligations.

The Dilemma of Corporate Social Responsibility (CSR); Case Study of PT. Inco

Since the CSR discourse has been widely discussed, the debate about the concept of CSR as an expression of moral responsibility and sensitivity to the social and environmental world has received resistance from some circles. The reason is that some people are trying to avoid CSR obligations. This paper talks about how the discourse and thinking about CSR struggles. Is CSR a voluntary activity for the company or is it an obligation (mandatory)? Then the authors describe the Indonesian context of CSR. And before the conclusion, the author tries to describe a case example of a CSR program run by a company in Indonesia and tries to analyze it from a human security perspective. As a result, from a human security perspective, the concept of CSR in Indonesia is still a problem. The cause, scholars are still trapped in efforts to formulate a detailed definition of CSR. As a result, practically the CSR program has not been seen as a humanitarian program. And it is still limited to a technical matter of fulfilling the company's procedural obligations.

PENERAPAN PROGRAM CORPORATE SOCIAL RESPONSIBILITY PADA THE OBEROI BEACH RESORT BALI

Corporate Social Responsibility (CSR) is an obligation of employers to formulate policies, make decisions, or follow the desired line of action in terms of community goals and values that emphasize on corporate responsibility which is no longer just an economic activity (creating profit for business continuity), yet social responsibility including the environment. This study uses qualitative data with descriptive methods. Data obtained by observing the object of research, conducting interviews with the Human Resources Department, employees, and the community around the hotel and documentation of CSR activities at The Oberoi Beach Resort Bali. The purpose of this study is to find out the steps of CSR implementation, types, and implementation of CSR and the problem with the solutions related to the implementation of CSR in The Oberoi Beach Resort Bali. The results of this study are The Oberoi Beach Resort Bali implements the steps of CSR implementation, such as planning, implementing, and reporting. The implementation of CSR activities is based on the implementation of CSR in Indonesia, such as CSR based on charity philanthropy and social activity.

Corporate Social Responsibility in Indonesia. Quixotic Dream or Confident Expectation?

During the past decade there has emerged, in North America and Western Europe in particular, a fairly powerful movement to improve the social and environmental performance of large corporations and their affiliates and suppliers in developing countries. By examining the case of Indonesia, this paper looks at how effective this approach has been. Two central questions are addressed. First, do corporate social responsibility (CSR) and accompanying voluntary initiatives have the capacity to change the day-to-day behaviour of TNCs? Second, at this stage of its development, and in the context of crisis, is corporate social responsibility relevant to Indonesia?The discussion on codes of conduct presents both civil society and TNC perspectives on the implementation, achievements and limitations of such initiatives, codes are fundamentally flawed for several reasons: they may serve to place corporations outside of the national regulatory system and bypass the tripartite negotiation system that was one of the major labour reforms of recent years; the process and outcomes of monitoring are usually confidential; monitors usually only see one or two plants chosen by the client; monitoring is often done by accounting firms that have insufficient technical knowledge to deal with the often complex health and safety problems in production plants; sanctions for non-compliance are weak or non-existent; codes are usually designed in the head office, and rarely in consultation with trade unions or others; codes with lower technical specificity are often found in enterprises that are female dominated; codes only apply to a small proportion of a nation’s workers; and corporations often insist that affiliates and sub-contractors improve conditions but provide limited if any resources to support such change.When viewed in the context of culture, economic and political development, and turmoil in Indonesia, the author concludes that CSR remains an ideal. The current transformation is bringing instability, fear and violence. In such a context, it is hard to consider something as abstract as CSR. It is timely, however, to begin to put into place the institutions, educational foundations and management training which are needed for business and political reform, and from which CSR may be a spin-off. Any broader application of CSR needs to stem from an indigenous belief in the necessity of such an institution and not represent a mere shrug to another Western fashion. There is clearly a tension between those in the developing countries who see this as yet another imposition of Western values, no matter how attractive, and those in the developed nations who, put cynically perhaps, wish to consume with a conscience.While it is fair to say that CSR makes a positive contribution to the human rights of those working in TNCs, it is also fair to say that it only makes a difference to those few corporations targeted by consumers or who are already thinking ethically and responsibly. Other industries are not so well inclined. Such anomalies, and the somewhat piecemeal approach of the CSR movement, should alert global citizens to the need for a more systematic approach.That being said, the after-shock of the Indonesian economic crisis has required a re-evaluation of both economic and investment policy, and the way business is run in Indonesia. The previous short-term thinking may have to make way for the type of longer-term pragmatic and visionary thinking required by genuine CSR and supported by Islamic business principles. A lot will depend on how deep the reform process goes. There is a danger, however, that CSR and voluntary initiatives may be a diversion from the real issues of law reform and multilevel political and social development. While CSR may benefit a small minority of Indonesia's workers and those whose lives intersect with TNCs, the development of and adherence to a fair system of law and institutional reform would benefit all. Without such changes, CSR is likely to remain cosmetic.