The sociological context of corporate social responsibility development and implementation in Indonesia

Abstract

CSR is now on the corporate and political agenda in Indonesia. In this article, the author (a member of the Indonesian Parliament) outlines the role for government with regard to CSR in the post-Suharto era. Unlike the case during the previous three decades, the current government has been forced to recognize the concerns of a growing number of stakeholders, especially around issues linked to unacceptable company behaviour premised on profit rather than engagement with the community. The government – through the Ministry of Environment – has taken the lead in arguing for the initiation of a regulatory framework that would see mandatory requirement for big business. The government also expects stakeholders to temper sometimes impossible demands and hopes that new CSR-related regulations can balance corporate behaviour with community expectations. Big business is expected to play a role in national development through a range of CSR activities, but community development has been identified by the government as one crucial area in which business can – if properly directed – play a positive role. This is expressed as development for, with and of the community. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.

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