The Development of CSR Implementation in Indonesia and Its Impact on Company’s Financial and Non-financial Performance

Ridho, Taridi Kasbi

doi:10.18502/kss.v3i8.2517

Cited by 4 publications

(4 citation statements)

References 2 publications

(2 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The implementation of CSR in Romania concluded that there is a positive relationship between CSR and the value of the company reaching above 75% [28]. Meanwhile, in Indonesia, CSR implementation is still low, below 50% on average [29]. FFB theft in state-owned plantations is very massive and serious.…”

Section: Optimization Of Corporate Social Responsibility Funds For Plantation Soes To Prevent Palm Oil Theftmentioning

confidence: 99%

Efforts to Prevent FFB Theft in Plantation SOEs through Optimizing CSR Funds by Involving the Police

Sinurat¹,

Ginting²,

Ediwarman³

et al. 2021

Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia

View full text Add to dashboard Cite

The main objective of establishing a Plantation BUMN, especially for the production of palm oil, is to obtain economic benefits and state revenues to realize public benefits. One of the factors that cause state-owned plantation companies to suffer losses is because of the rampant palm theft. This study discusses the problem of palm oil theft in state-owned plantations in terms of prevention through optimizing CSR funds by involving the role of the National Police. The urgency of efforts to prevent palm oil theft by involving Babinkamtibmas, Ditpamobvit, and Korsabhara is carried out to focus on pre-emptive and preventive efforts. This research method is normative juridical and qualitative analysis. The results of the study found that the increasing number of cases of palm oil theft in stateowned plantations caused economic losses for companies, investors, and the state. It was concluded that efforts to prevent palm theft in state-owned plantations through optimizing CSR funds by involving the assistance of the National Police were very effective in reducing or at least reducing the rate of palm theft, which in turn could increase the value of palm fruit production, increase company revenues and state revenues from plantation products. So that the state's goal of establishing Plantation SOEs is maximally achieved in the context of implementing public benefits such as fulfilling the needs of many people. It is hoped that the State-Owned Enterprises Plantation will form a partnership with the National Police by focusing on pre-emptive and preventive measures to prevent and reduce palm oil theft by the CSR mandate in the Company Law.

show abstract

Section: Optimization Of Corporate Social Responsibility Funds For Plantation Soes To Prevent Palm Oil Theftmentioning

confidence: 99%

Efforts to Prevent FFB Theft in Plantation SOEs through Optimizing CSR Funds by Involving the Police

Sinurat¹,

Ginting²,

Ediwarman³

et al. 2021

Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia

View full text Add to dashboard Cite

show abstract

“…The Indonesian Government has released Law Number 40 2007 on Limited Liability Companies (UU Number 40 Tahun 2007 tentang Perseroan Terbatas). This law has j SOCIAL RESPONSIBILITY JOURNAL j made Indonesia the first nation in the world to mandate companies to conduct CSR and report their CSR activities (Maris, 2014;Ridho, 2018;Rosser and Edwin, 2010;Waagstein, 2011).…”

Section: Introductionmentioning

confidence: 99%

Integrating corporate social responsibility into business functions and its impact on company performance: evidence from the Indonesian manufacturing industry

Rinawiyanti

Huang²,

As-Saber³

2022

SRJ

View full text Add to dashboard Cite

Purpose This study aims to investigate the integration of corporate social responsibility (CSR) at a functional level and examine its impact on company performance. Design/methodology/approach Using data from 435 Indonesian manufacturing companies, 11 hypotheses were tested on direct, indirect and total effects of the relationship between functional CSR integration and its impact on company performance. The stakeholder and contingency theories were applied. Findings The findings of this study reveal that functional CSR integration has a significant impact on customer, employee, operational and financial performances. The findings show that the relationship between functional CSR integration and financial performance can be mediated by customer, employee and operational performances. The results of this study also highlight that functional CSR integration has a stronger total effect on both customer and financial performances in environmentally non-sensitive industries than in environmentally sensitive ones. Research limitations/implications This study expands the prior studies by providing a theoretical framework for the relationship between CSR integration and company performance, as well as testing the framework using quantitative research. Practical implications The findings can encourage managers to effectively integrate CSR into business functions to achieve superior social and financial performance, particularly in a developing country context. Originality/value To the best of the authors’ knowledge, this study is one of the first to empirically investigate the performance implications of integrating CSR into business functions and reveals new findings on how such integration can substantially improve company performance.

show abstract

“…As the world's fourth most populous nation with more than 267 million population, Indonesia has the largest economy in Southeast Asia (Worldbank, 2020). As one of the biggest developing country, Indonesia has been trying to implement CSR for almost two decades (Ridho, 2018). The Public Interest and Research Advocacy (PIRAC) survey in 2001 showed that CSR funds in Indonesia were $11.5m from 180 organizations endorsing 279 CSR activities (PIRAC, 2002).…”

Section: Introductionmentioning

confidence: 99%

“…40 2007 on Limited Liability Companies. Under this law, companies with activities related to natural resources are obliged to practice CSR and disclose their CSR activities (Ridho, 2018; Waagstein, 2011).…”

Section: Introductionmentioning

confidence: 99%

Adopting management control systems through CSR strategic integration and investigating its impact on company performance: evidence from Indonesia

Rinawiyanti

Huang

As-Saber

2020

View full text Add to dashboard Cite

Purpose This paper aims to investigate the extent to which the management control systems (MCS) adoption in corporate social responsibility (CSR) integration into business strategy has an impact on companies’ performance. Design/methodology/approach Using a sample of 435 Indonesian manufacturing companies, partial least squares structural equation modelling was used to investigate the impact of CSR strategic integration on companies’ performance based on the contingency and stakeholder theories. Findings The findings reveal CSR strategic integration has a positive and significant impact on companies’ performance, including employee, operating and financial performance and the company size can positively moderate the impact of this integration on both its operating and financial performance. Practical implications The findings can encourage managers to adopt MCS by undertaking CSR at the strategic level, resulting in superior performance, both socially and financially. Social implications Employee performance and operating performance can significantly mediate the effect of strategic integration on financial performance. Originality/value The paper suggests that adopting MCS through CSR strategic integration could improve company performance socially and financially. This is the very first study on this issue from an Indonesian perspective.

show abstract

The Development of CSR Implementation in Indonesia and Its Impact on Company’s Financial and Non-financial Performance

Abstract: .

Cited by 4 publications

References 2 publications

Efforts to Prevent FFB Theft in Plantation SOEs through Optimizing CSR Funds by Involving the Police

Efforts to Prevent FFB Theft in Plantation SOEs through Optimizing CSR Funds by Involving the Police

Integrating corporate social responsibility into business functions and its impact on company performance: evidence from the Indonesian manufacturing industry

Adopting management control systems through CSR strategic integration and investigating its impact on company performance: evidence from Indonesia

Contact Info

Product

Resources

About