CSR in Indonesia : a qualitative study from a managerial perspective regarding views and other important aspects of CSR in Indonesia

Abstract: This paper will from a managerial perspective investigate the function of CSR (Corporate Social Responsibility) as a strategic tool for companies operating in Indonesia.Another aspect this paper will discuss is different views on CSR and what positive aswell as negative aspects CSR brings. The country was first in the world to state a lawregarding CSR performance in 2007, which makes CSR mandatory for all companiesusing natural resources in some way. This issue complicates CSR matters in Indonesiasince the law is vague regarding what is considered as a natural resource. Furthermore,this paper will display how companies using CSR relate themselves totheir stakeholders and in what way they operate in order to fulfil and satisfy differentstakeholders’ needs and demands. It will also discuss which stakeholder is consideredto be the most important and influential regarding a company’s CSR activities.Findings in this thesis show that CSR among companies is used as a strategy in orderto gain legitimacy from the society to be able to do business and operate in theseareas. Further, using CSR will create competitive advantages towards non-users anda company will increase its reputation as well as image.