Role of Stakeholders and Corporate Social Responsibility (CSR): Shortcomings on the Implementation of a Governance-Perspective Based CSR in Indonesia

Mustofa, Amirul and Supriyono, Bambang and Hakim, Abdul and Wijaya, Andy Fefta (2016) Role of Stakeholders and Corporate Social Responsibility (CSR): Shortcomings on the Implementation of a Governance-Perspective Based CSR in Indonesia. Role of Stakeholders and Corporate Social Responsibility (CSR): Shortcomings on the Implementation of a Governance-Perspective Based CSR in Indonesia, 3 (05). pp. 35-45. ISSN 2225-7225

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Abstract

Corporate Social Responsibility (CSR) program should become corporate’s ethics and commitment of which orientation is overcome social, economic and environmental degradation problems around the business as well as meet the demands of global and sustainable development. Factual data shows that there are very few companies that implement CSR programs especially ones in accordance to the company's regulation and Indonesia, particularly East Java Government regulations. Based on the government regulation, CSR programs should be carried out based on and synchronized with the programs that become priorities in development of East Java. In addition, company should have coordination with the government of East Java in the implementation of CSR program in the area. The purpose of the study is to analyze the role of stakeholders in the implementation of CSR programs. The underlying theories used are theories of governance, corporate governance, CSR, role of government, role of the company, and role of the community. The research method used is qualitative research and the settings are the secretariat of CSR organizers of East Java and three companies implementing CSR programs. The findings show that: (i) TF-CSR and FC-CSR have yet been able to perform the tasks and functions as mandated by the CSR Regulation. Their roles are: (ii) conducting internal coordination among stakeholders, (iii) synergizing CSR program with the development programs established by the government of East Java and ones of the district/city governments; however such synergy has yet been taken place and the company's CSR program has never been implemented.

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