THE IMPLEMENTATION OF INNOVATIVE CORPORATE SOCIAL RESPONSIBILITY (CSR) MODEL IN INDONESIA

Abstract

Corporate Social Responsibility is an action or a commitment performed by a company as a responsibility towards the environment that the company is located in. This responsibility comprises of social, economic, and environmental dimensions. Corporate Social Responsibility attempts to contribute positive impacts or benefits to the society and its environment. The company and the society are not two separate entities that serve to exploit each other. Therefore, a company is expected to increase its awareness. Corporate Social Responsibility in Indonesia is regulated in PP No. 47, Year 2012 Article 4, Section 1 which states that “Social and environmental responsibilities are executed by the directors based on the company’s annual work plan after receiving approval from the board of commissioners or RUPS in accordance with the company constitution, unless determined otherwise in the legislation”. There are different forms of Corporate Social Responsibility, from educating the importance of healthy living, free education, to empowering society. Corporate Social Responsibility becomes a path for companies to create awareness towards social responsibility in order to protect market share, shareholders, and the company’s sustainability for the future. A sustainable success of Corporate Social Responsibility’s programs highly depends on both the program providers’ and receivers’ commitment.