CSR IN INDONESIA: СOMPANY`S PERCEPTION AND IMPLEMENTATION

  • Taridi Ridho State Islamic University “Syarif Hidayatullah”, Jakarta
Keywords: corporate performance, CSR, Indonesia

Abstract

This paper intends to describe current issues of CSR in Indonesia. First, this research drew a picture on how business community Indonesia perceived CSR, followed by an analysis on how was that CSR has been actually implemented in the last two year of 2014 and 2015. Finally this research explained whether CSR implementation influenced company`s performances, in terms of traditional financial and non financial performance both in 2014 and 2015. Using ISO 26000 (guidance on social responsibility) standard in order to determine CSR index as measurement of CSR implementation in 200 top Indonesian listed companies for the year 2014 and 2015, the CSR implementation data was then paired with the company’s performance data in order to find the relationship between CSR implementation and company’s performance. Result indicated that (i) the understanding of majority of CSR managers in Indonesian listed companies regarding CSR was still  limited to donation and community development activities; (ii) there was only little improvement of CSR implementation for the last two year; and (iii) CSR implementation had positive and significant impact on company’s financial performance, measured both by ROE and ROA; there was a change of the impact of CSR to customer, from no influence in 2014 to become positively influenced the customer in 2015; and there was no significant influence of CSR implementation on employee both in 2014 and 2015.

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Author Biography

Taridi Ridho, State Islamic University “Syarif Hidayatullah”, Jakarta

Holds PhD (Business Management) from University Padjadjaran (Indonesia). He is a faculty member of Islamic University (UIN) in Jakarta (since 2009) and owner and director of PT Restu Azimah Abadi company since 2013.

His scientific interests: business sustainability, sustainable Corporate Planning, Corporate Governance, Assurance on Sustainability Reporting, strategic HR and Corporate Culture

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Abstract views: 953
PDF Downloads: 602
Published
2017-05-31
How to Cite
Ridho, T. (2017). CSR IN INDONESIA: СOMPANY`S PERCEPTION AND IMPLEMENTATION. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (3(4), 68-74. https://doi.org/10.35678/2539-5645.3(4).2017.68-74