CORPORATE SOCIAL RESPONSIBILITY : HOW DO INDONESIA’S PUBLIC COMPANIES RESPOND TO THIS DEMAND?

Apparently, there is no other choice for the companies except to adopt the current public demand that is to implement corporate social responsibility (CSR). CLSA, in its survey shows that there are costs to be borne by companies that do not implement CSR. As the response of current public demand, Indonesian government through the Corporate Act No. 40, 2007 has mandated the companies which utilize natural resources to implement CSR. These companies should allocate certain cost to recover environmental and social aspect as a consequence of their action. The way the companies see the regulation will determines their response to the CSR Act. This study aims to describe how Indonesia’s public companies respond to this act.
a I would like to thank the anonymous reviewers and B&ESI Conference Participants, especially to Dr. Robert Sims and Dr. Peter Demediuk, School of Accounting & CTSR, Victoria University, Melbourne, Victoria, Australia, for useful constructive comments and suggestions; all errors remain mine.
Keywords: Corporate Social Responsibility, public companies response