The Indonesian Executives Perspective of CSR Practices

Abstract

The objective of this study is to investigate the CSR (Corporate Social Responsibility) practices 
after the issuance of the government regulation as the implementation guideline of the CSR as 
stipulated in the law no.40/2007 through business players’ interviews. Using the semi
structured interviews with Indonesian executives/informants of Indonesian companies, this 
study found that CSR practices have been viewed as philanthropic activities of companies with 
all the consequences that follow: shareholder as the most important stakeholder, reporting CSR 
practice as means to have public image and no need to have any standard to prepare CSR prac
tice reporting. Given the findings, there is a need to redefine CSR based on the intention to 
maintain good relationship with stakeholders and to have the integrated management system to 
help management well interact with them in market and non-market mechanism.