Implementation of Javanese traditional value in creating the accountable corporate social responsibility

Abstract

Purpose

This paper aims to provide an overview of existing condition, rules and implementation of CSR and create harmony models of corporate social responsibility (CSR) between regulation, Javanese culture values and universal principles, to fill the lack of CSR regulation in Indonesia.

Design/methodology/approach

This study is based on sociology legal research. The regulations and principles have been studied by using the approach of law and social sciences. That characteristic is descriptive evaluative. The primary data are taken from interview with the senior source relations of PT Pertamina Hulu Energi (PHE) in Jakarta, President Director of PT Rosalia Indah Group in Surakarta and Your Honour Prince of Surakarta Hanadiningrat Kingdom. Secondary data are obtained from the review of the literatures pertaining to the material. Secondary data consist of legal materials such as regulations, books, papers and other references. Data analysis technique use theoretical interpretative.

Findings

CSR is implemented by company only for lifting the image. CSR fund allocation is still a company’s secret, and it becomes evidence of the lack of transparency for companies to manage and provide social cost to society. It can also be found that some companies collect donations from the public for disaster relief, but in the distribution of aid, they use the name of a CSR company. There is polarization in the implementation of CSR. A government- owned company is already bound by the provisions of the Regulation of the Minister of state-owned enterprises.

Research limitations/implications

This paper discusses the CSR implementation in Indonesia and it creates a model of accountability of CSR to fill the legal vacuum that occurs at this time. This paper formulates a good relation between traditional Javanese value, government regulations and universal CSR principle.

Practical implications

There remains a mismatch between the Javanese values of philosophy with the positive regulatory norms that result in the implementation of CSR only to meet the requirements of the positive regulatory norm and ignore the obligations involved and to aid the prosperity of the public society.

Social implications

Communities around a company have not been able to enjoy the advantages of the company. Communities should fight for their own lives without being dependent on or being supported by a company’s existence.

Originality/value

This research combines the Javanese values with the positive legal regulations in the implementation of CSR in Indonesia. This research has not been conducted by the others. This research will provides benefits on the idea of imposing sanctions on the non-implementation of CSR, not only through positive legal regulations but also through social sanctions embodied in the Javanese values.

Citation

Pujiyono, Wiwoho, J. and Sutopo, W. (2017), "Implementation of Javanese traditional value in creating the accountable corporate social responsibility", International Journal of Law and Management, Vol. 59 No. 6, pp. 964-976. https://doi.org/10.1108/IJLMA-06-2016-0060