Modeling an Effective Corporate Social Responsibility in Alignment with Good Corporate Governance Based on Indonesian Legal Regulations

Modeling an Effective Corporate Social Responsibility in Alignment with Good Corporate Governance Based on Indonesian Legal Regulations

Author		: ASTRIE KRISNAWATI
Published on	: International Conference on Business, Management, Tourism and Hospitality 2015 (Bizmatour 2015) / Advanced Science Letters

Abstract

“An inductive approach is applied in this study to reach a purpose of formulating a model of effective Corporate Social Responsibility (CSR) according to Good Corporate Governance (GCG) in Indonesian business practices through content analysis of the existing Indonesian legal regulations. The proposed model depicts how Indonesian business practices are regulated by laws to be in accordance with GCG. It is regarded as a system which consists of inputs, processes, contextual conditions, and outputs. The contextual conditions are regarded as moderating variables those influence the relationships between inputs and processes, and also between processes and outputs. Based on Indonesian legal regulations, the contextual conditions consist of four categories according to business characteristics and ownerships, i.e. natural-resource-based business, non-natural-resource-based business, state-owned business, and non-state-owned business.

Keywords: Corporate Social Responsibility; Corporate Governance; Legal Regulation”