"The pressure from non marketing to the company getting bigger as public society and world awareness about big part of the company to human life getting higher. This pressure in later on push the development of application of Corporate social responsibilities (CSR) concept as one of company's strategy to guarantee its business. The development of Corporate social responsibilities (CSR) has been assumed to existed along time ago but the definition of its concept start in 1950 (Carol], 1999). The development of Corporate social responsibilities (CSR) create Corporate social responsibilities (CSR) definition that has its meaning from carivative activities to the one that integrated to business. But there are some similarities which is balance between looking for the profit and concerning social activities and environment (SWA 2005; 46). The development of Corporate social responsibilities (CSR) in Indonesia has been in discussion since 1995.
The purpose of this research are to know: (I) company's understanding of Corporate social responsibilities (CSR) ; (2) how far CSR application has been implemented, (3) factors that influenced CSR implementation. This research is expected to catch diversity of pattern of Corporate social responsibilities (CSR) that can contribute to the knowledge in mapping of Corporate social responsibilities (CSR) practice in Indonesia.
Type of research in Qualitative research method is explorative with study case research strategy. Companies that being researched are four companies with different industry background but all of them been operated in Indonesia as also the main player in each industry. Four companies that been selected are PT. NEWMONT INDONESIA in mining field, PT Astra Agro Lestari Tbk in agriculture business, PT PLN Jakarta and Tangerang (Persero) and KOMPAS-GRAMEDIA Group in services. Data that been collected is analized by using comparative study to see comparative to see the similarities and differencies in CSR implementation between companies.
The result of this research shown that the four companies have different pattern in understanding and maintain CSR implementation. Newmont understood CSR as a form of responsibility for having privilege to operate and develop (threatened demand). PT PLN and AAL understood as a care form to the society around the company in order to be part of the society as in the end they can support its operation (profit). Different that the three companies earlier, KKGN not really take CSR to company's profit. KKG understood CSR as a form of care that comes from moral obligation and to answer society expectation (moral).
The similarities from the four companies are they realize the importance of CSR implementation in their operation process. Generally, the companies understood the CSR concept as an effort of the company to have society support by giving them positive contribution to external stakeholder company. There is a similarity in Respondent definition in four companies, confidence in existence of take and give law.
CSR definitions in four companies in general have three propositions where CSR are:
1. Company's obligation, which can be seen from company's commitments in its policy, programs, resources allocation (funding, human resources, time and energy), organizational structure, evaluation and reporting process as a responsible manner to its operation to society.
2. To improve the welfare of society, for example through improvement in economic, education, health, infrastructure, etc.
3. To support company's operation, such as resources supply, asset protection, consumer creation, etc.
From CSR implementation side, this research concluded that (I) CSR policy still in general form of company's Code of Conduct; (2) trend to choose CSR issues that appropriate with company's competency and resources. (3) trend to use CSR in charity form; (4) put CSR in external relation function; (5) except Kompas, company use internal funding for CSR initiatives; (6) CSR evaluation and reporting tend to be internally conducted. Based on Malkasian (2004) Newmont has the higher level of commitment then the other three companies.
Factor that seem to be influencing CSR understanding and implementation are context, operational impact, and internal condition of company.
Suggestions for managerial in implementing CSR are (I) give attention on internal CSR; (2) give attention also in minimalize negative impact on operation; (3) integrating CSR with business process; (4) increasing transparency in evaluating and reporting CSR to external stakeholders.
Suggestions for next research are (1) conduct explanative study in proofing factors that influence CSR understanding and implementation; (2) deep research in the real process of CSR in the field; (3) historical study to find CSR motives; (4) deeper examination about CSR and business process and value chain management.
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Depok: Fakultas Ekonomi dan Bisnis Universitas Indonesia, 2007
