Sustainably profitable and socially responsible : identifying factors for implementing CSR within Indonesian context

Abstract

The idea of Corporate Social Responsibility (CSR) in Indonesia is relatively new. Not until early 2000s did it become a hot issue among academia, social activists and government officials. Soon after, the implementation of CSR has been mandatory. The Government of Indonesia (G0I) launched complete set of regulatory frameworks. However, at the implementation level CSR has not lifted up into expectation. This paper aims to explore influential factors for successfully implementing CSR. Selected accessible journal articles were reviewed. Five critical factors, then, revealed in predicting successful CSR: the nature of governmental regulatory frameworks, pressure from immediate corporate environment, responsible internal structure of corporate governance, effective corporate communication strategy and awareness of explicit political and ideological biased. It is expected that these five accounted factors can be blended into an effective model that fit to Indonesian context.