A Closer Look at the Socio-cultural Implication on Corporate Social Responsibility: A Case Study in a Multinational Oil and Gas Company in Indonesia

Abstract: Corporate Social Responsibility (CSR) has emerged to cover the company’s responsibility in their participation in solving social problems. Research has shown that CSR planning and implementation vary significantly between developed and developing countries. Previous literature on CSR were mainly dominated by Western nuances, and they overlooked the implication of socio-cultural aspects in the developing countries where the multinational company operates. In expanding the research on CSR, this study aims to provide an understanding of how the socio-cultural aspects in a developing country were taken into account in the development of CSR planning and CSR communication strategy in a multinational company. A case study was conducted in a multinational oil and gas company that operates its business in Indonesia. A semi-structured interview was held with ten managers from that company. In analysing the empirical material, this study employed three theoretical frameworks to get an understanding of the political role of the company in Indonesia, the process of translations and adaptations of the company’s global guidelines, and the communication processes between the company and society. The results indicated that the company conforms to the socio-cultural aspects of Indonesian society in developing its CSR planning and CSR communication strategy. It can be seen from the CSR communication talking-to-walk approach, where the company involves local communities in an active dialogue prior to the development of its CSR programs. Nevertheless, the study found that the company did not communicate its CSR implementation massively to Indonesian society. This study also indicates the company’s active participation in political activities in Indonesia. The results of this study influence further discussion regarding the boundaries between CSR and corporate philanthropy.