Economic Forces Against Sustainability and Corporate Social Responsibility: On Intended Overuse of Natural Resources

In the present-day business landscape characterised by global competition, demanding customers and depleting natural resources, Corporate Social Responsibility (CSR) has become an important strategy for corporations for creating competitive advantage. CSR involves a corporation's commitment to align performance (revenue growth and profit) motives with fulfillment of social, ethical, community and environmental obligations. Researchers have found a positive correlation between stakeholder perceptions of firm's CSR performance and financial performance, assuming other factors as constant. In this chapter we study the effect of stakeholder perception of a firm's CSR on the performance of the firm, based on analysis of Wal-Mart's performance from 2001 to 2011. We found that seemingly significant negative perceptions of CSR activities of corporations result in lower performance of the firm. Once formed, changing negative perceptions of stakeholders is often difficult and the effort needed involves considerable amount of resources with questionable outcomes. This study has come to the conclusion that being a good ‘Corporate Citizen' and creating positive stakeholder perceptions is a better strategic approach for firm's continuing success.

Download Full-text

The Energy Politics of Corporate Social Responsibility

The Oxford Handbook of Energy Politics ◽

10.1093/oxfordhb/9780190861360.013.9 ◽

2019 ◽

pp. 232-247

Author(s):

Jessica Steinberg

Keyword(s):

Corporate Social Responsibility ◽

Literature Review ◽

Social Responsibility ◽

Natural Resources ◽

Research Agenda ◽

Energy Sector ◽

Energy Politics ◽

Corporate Social ◽

Economic Goods ◽

Critical Literature

Corporate social responsibility (CSR) is the practice in which firms voluntarily provide social and economic goods to communities affected by their operations. This chapter addresses several questions related specifically to CSR in the energy and natural resources sector. How is CSR in the energy sector unique relative to other sectors? What about the energy sector is likely to affect the way CSR among energy or extractive firms is conceived, implemented, and studied? This chapter provides a critical literature review and lays the groundwork for a research agenda in the area of CSR in the energy sector.

Download Full-text

IMPLEMENTASI CSR PT ASIA FORESTAMA RAYA TERHADAP PEMBERDAYAAN PEREKONOMIAN MASYARAKAT PADA MASA PANDEMI COVID-19

Ensiklopedia Sosial Review ◽

10.33559/esr.v3i1.682 ◽

2021 ◽

Vol 3 (1) ◽

pp. 25-31

Author(s):

Hasnati Hasnati ◽

Sandra Dewi ◽

Andrew Shandy Utama

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Raw Materials ◽

Limited Liability ◽

City Government ◽

Economic Empowerment ◽

Unstable State ◽

Financial Condition ◽

Corporate Social

PT Asia Forestama Raya is a forest product processing factory for the wood industry's raw materials. Based on Article 74 Paragraph (1) of Law Number 40 of 2007 concerning Limited Liability Companies, it is stipulated that companies that carry out their business activities in the natural resources sector and / or fields related to natural resources are required to implement CSR. In Article 10 of Riau Provincial Regulation Number 6 of 2012 concerning Corporate Social Responsibility in Riau Province, it is stated that CSR programs can take the form of community economic empowerment. This research aims to explain the implementation of PT Asia Forestama Raya's CSR on community economic empowerment during the Covid-19 pandemic. The method used in this research is socio-legal research. During the Covid-19 pandemic, the public really expected a real contribution from PT Asia Forestama Raya. PT Asia Forestama Raya's obstacle in implementing community economic empowerment in Limbungan Village is that the financial condition of PT Asia Forestama Raya is currently in an unstable state. Efforts that can be made by the people of Limbungan Village if PT Asia Forestama Raya doesn’t carry out a CSR program are to convey their aspirations to Commission IV of DPRD Pekanbaru City. Based on Article 32 of Riau Provincial Regulation Number 6 of 2012 concerning Corporate Social Responsibility in Riau Province, it is stated that if PT Asia Forestama Raya doesn’t carry out CSR towards empowering the community's economy, the company can be subject to administrative sanctions by the Pekanbaru City Government.

Download Full-text

LEVERAGE, PROFITABILITAS, UKURAN PERUSAHAAN, PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY DENGAN PENDEKATAN KAUSALITAS

JURNAL PUNDI ◽

10.31575/jp.v1i1.5 ◽

2017 ◽

Vol 1 (1) ◽

Author(s):

Muhammad Rivandi ◽

Sri Madona Saleh ◽

Renil Septiano

Keyword(s):

Corporate Social Responsibility ◽

Data Analysis ◽

Social Responsibility ◽

Natural Resources ◽

Regression Model ◽

Sampling Method ◽

Stock Exchange ◽

Panel Regression ◽

Analysis Method ◽

Corporate Social

Management of natural resources and environment who is not responsible the main issues disclosure of corporate social responsibility (Wahba & Elsayed, 2015). This study aims to examine the effect of leverage, profitability, and size toward the disclosure of corporate social responsibility. The samples of this study are 51 companies listed in Indonesia Stock Exchange selected by using purposive sampling method. Data analysis method used is panel regression model. The result this study tested that leverage has t statistics the biggest than t table (3,571 ≥ 1,969), profitability has t statistic the biggest than t table (-2,495 ≥ - 1,969), and size of the firm has t statistic the biggest than t table (-1,961 ≥ -1,651). Base on hypothesis tested that the leverage, profitability, and size of the firm have a significant effect toward disclosure of corporate social responsibility

Download Full-text

IMPLEMENTASI PROGRAM CORPORATE SOCIAL RESPONSIBILITY OLEH PERUSAHAAN UNICORN DI INDONESIA

Prosiding Penelitian dan Pengabdian kepada Masyarakat ◽

10.24198/jppm.v6i3.26214 ◽

2020 ◽

Vol 6 (3) ◽

pp. 252

Author(s):

Yoga Maulana Yusuf ◽

Dimas Aji Prastyo ◽

Levina Khaerunnisa ◽

Santoso Tri Raharjo

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Communication Technology ◽

Positive Impact ◽

Qualitative Approach ◽

Work Process ◽

Social Club ◽

Economic Culture ◽

Corporate Social

ABSTRAK Corporate Social Responsibility (CSR) adalah kegiatan perusahaan dalam mengelola bisnis perusahaan demi menghasilkan dampak positif bagi lingkungan masyarakat baik dalam bidang ekonomi, budaya, dan lingkungan. Hal ini karena perusahaan memiliki tanggung jawab terhadap efek yang dihasilkan oleh perusahaan. Seperti yang kita tahu, bahwa di Indonesia sendiri memiliki beberapa perusahaan besar yang dikategorikan sebagai Unicorn. Mayoritas dari perusahaan ini memanfaatkan teknologi komunikasi dalam prosesnya. Sehingga dampak yang dihasilkan jika dibandingkan dengan perusahaan yang memanfaatkan sumber daya alam, adalah sangat sedikit. Namun, keuntungan yang dihasilkan tidak kalah besar dibandingkan dengan perusahaan yang memanfaatkan sumber daya alam. Dilansir dari CNN Indonesia, bahwa keuntungan yang dihasilkan oleh salah satu perusahaan unicorn di Indonesia adalah sebesar Rp. 90,4 triliun per tahun. Namun apa saja kah implementasi CSR yang telah dilaksanakan? Terdapat tiga unicorn yang akan digunakan dalam penelitian ini yakni Tokopedia, Go-Jek, dan Bukalapak. Beberapa program yang akan dijelaskan yakni Nakamate oleh Tokopedia, Go-Scholar Tech oleh Go-Jek, BSC (Bukalapak Social Club) oleh Bukalapak. Penelitian ini dilaksanakan menggunakan pendekatan kualitatif dengan metode deskriptif sehingga peneliti ingin memberikan gambaran mengenai implementasi CSR pada perusahaan unicorn di Indonesia. ABSTRACT Corporate Social Responsibility is company bussiness managing activity in order gaining positive impact for the environment and also in society who live around the company in economic, culture, and environment side. The company has the responsibility to the effect that might affect the society around caused by the company itself. Indonesia h as so many huge companies called unicorn cause mostly those companies use communication technology in the process of work. So that, compared to the others company who only use the natural resources in the work process has a big differ impact among it. But the profit is just almost the same huge. Reported by CNN Indonesia, the profit generated by one of the unicorn company in Indonesia is IDR 90.4 T per year. There are three unicorn companies that will be discussed in this research, namely Tokopedia, Gojek, and Bukalapak. Some programs that will be discussed are Nakamate by Tokopedia, Go - Scholar Tech by Gojek, BSC (Bukaalapak Social Club) by Bukalapak. This research uses qualitative approach with description method so that this research will give the descript ion about the implementation of CSR programs in Indonesian Unicorn Companies.

Download Full-text

Corporate social responsibility, financial performance and risk in Indonesian natural resources industry

Social Responsibility Journal ◽

10.1108/srj-06-2018-0155 ◽

2018 ◽

Vol 16 (1) ◽

pp. 73-90 ◽

Cited By ~ 3

Author(s):

Devie Devie ◽

Lovina Pristya Liman ◽

Josua Tarigan ◽

Ferry Jie

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Financial Performance ◽

Financial Management ◽

Negative Influence ◽

True Nature ◽

Content Type ◽

Corporate Social

Purpose With an attempt to give a deeper explanation regarding the manifestation of socially and environmentally responsible cultures among Indonesian natural resources industry, this paper aims to highlight the empirical confirmation on the correlation of corporate social responsibility (CSR), corporate financial performance (CFP) and risk. Likewise, corporate risk’s role as a mediating variable in the indirect effect of CSR on CFP is also examined. Design/methodology/approach Kinder, Lydenberg and Domini’s (KLD) measurement approach is used as a basis to assess social responsibility activities as it gives more social rating transparency. CFP captures both accounting- and market-based measurements, whereas volatility of stock return is adopted as a proxy of firm risk. Partial least squares analysis is conducted on 40 Indonesian listed firms in natural resources sector, with observation years from 2008 to 2016. Findings It is revealed that CSR positively affects CFP, although the correlation is stronger in the long run. Significant negative influence to risk is also discovered. However, risk has a significant adverse correlation with CFP when two years’ lagged value is used. Hence, CSR affects CFP through risk in the long-term, both directly and indirectly. Practical implications The empirical result suggests that CSR serves as a tool in managing the risk of enterprises and performance, especially in the long-term. Accordingly, firms should incorporate CSR as a strategic investment and manage a strong relationship with stakeholders. Originality/value This report expands further prior works and contributes to CSR and financial management literature by discovering the true nature of CSR effects as an investment in the future. This is the first study which tests and proves that CSR in Indonesian natural resources industry plays a significant role as a strategic risk management instrument that leads to a sustainable and long-lasting financial performance.

Download Full-text

Kegiatan Corporate Social Responsibility dan Prospek Kinerja Keuangan Perusahaan Sumber Daya Alam di Indonesia, Singapura, dan Malaysia

Jurnal Akuntansi Maranatha ◽

10.28932/jam.v13i1.2990 ◽

2021 ◽

pp. 118-133

Author(s):

Janita Suryani Muliate ◽

Silvi Suhendro ◽

Rinaningsih Rinaningsih ◽

Vania Pradipta Gunawan

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Financial Performance ◽

Quantitative Research ◽

Asset Return ◽

Return On Equity ◽

Negative Results ◽

The Future ◽

Corporate Social

This research aims to determine the influence of implementation and reporting of Corporate Social Responsibility (CSR) activities towards the prospect of corporate financial performance. The samples used in this research is the company of the natural resources sector operating in Indonesia, Singapore, and Malaysia from 2011 to 2017 with total samples of 25 companies and 96 observations. The data obtained is processed using quantitative research method. In this research, it is known that there are several results explaining the relationship between implementation and reporting of CSR activities to the company's financial performance in the future which is proscribed with return on asset, return on equity, cash flow from operating activities, and Tobin’s Q. The results of the study also showed significant negative results between the reporting and the implementation of CSR activities with the company's financial performance in the future. This results showed that CSR activities in Indonesia, Singapore, and Malaysia were a charity activity or just to fulfil governance’s rules. Keywords: Corporate Social Responsibility, Firm’s Financial Performance, and Natural Resources Industry

Download Full-text

MANDATORY CORPORATE SOCIAL RESPONSIBILITY IN INDONESIA

Mimbar Hukum - Fakultas Hukum Universitas Gadjah Mada ◽

10.22146/jmh.16669 ◽

2016 ◽

Vol 28 (3) ◽

pp. 512

Author(s):

Laurensia Andrini

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Control Mechanism ◽

Limited Liability ◽

Not Given ◽

Legal Certainty ◽

Corporate Social ◽

And Control ◽

Practical Level

AbstractRegulation on CSR under laws and regulations of Company Act have not given clarity and legal certainty as it does not stipulate sanction and control mechanism. In the practical level, the implementation of CSR is often mistargeted because the company does not have a clear guidance to fulfill people’s demand. It is the purpose of this research to understand how far CSR is obligatory towards Limited Liability Companies who perform business in the field of and or related to natural resources as well as to understand the reason behind mandatory CSR in Indonesia. IntisariPeraturan mengenai Tanggung Jawab Sosial dan Lingkungan yang diatur dalam peraturan perundang-undangan mengenai Undang-undang Perseroan Terbatas belum memberikan kejelasan dan kepastian hukum karena tidak adanya sanksi dan mekanisme pengawasan. Dalam ranah praktis, penerapan TJSL seringkali kurang tepat sasaran karena Perseroan Terbatas tidak memiliki panduan yang jelas untuk memenuhi permintaan masyarakat. Penelitian ini ditujukan untuk memahami sejauh mana kewajiban TJSL terhadap Perseroan Terbatas yang melakukan usaha di bidang atau terkait dengan sumber daya alam, sekaligus untuk memahami alasan di balik kewajiban TJSL di Indonesia.

Download Full-text

Exploring Intelligent Information Communication Services: A Case of Corporate Social Responsibility

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.694-697.3636 ◽

2013 ◽

Vol 694-697 ◽

pp. 3636-3641 ◽

Cited By ~ 2

Author(s):

Hung Yi Tsai ◽

Wen Chin Chen

Keyword(s):

Sustainable Development ◽

Corporate Social Responsibility ◽

Social Responsibility ◽

Natural Resources ◽

Human Beings ◽

Information Communication ◽

Communication Services ◽

The Earth ◽

Intelligent Information ◽

Corporate Social

Entering the 20th century, human technology keeps changing constantly and is developing with high acceleration. Intelligent information communication services not only shorten the communication distance on earth but also bring multiple life-convenient tools. Sustainable development has become the critical issue that all human beings would inevitably face with, take responsibility, and think about deeply. On one hand, industrial pioneers and initiatives have motivated technological development; on the other hand, it even would abuse the earths natural resources; hence, business organizations need to pay more attention to conserve resources and manage their environmental impact. In other words, at the same time taking natural resources from the earth, organizations should think about how to give feedback to the earth. Consequently, organizations are enforced to make great efforts in becoming responsible earth citizens and doing well on enterprise ethics as well as improving corporate social responsibility to the utmost. This would cause the whole society to focus more on corporate social responsibility (CSR) and the awareness of carrying out human beings natural duty of enhancing sustainable development of human and the earth. In this study, a questionnaire survey to verify the validity of its affiliates.

Download Full-text