Abstract:
Corporate Social Responsibility is an action or a commitment performed by a
company as a responsibility towards the environment that the company is located in. This
responsibility comprises of social, economic, and environmental dimensions. Corporate Social
Responsibility attempts to contribute positive impacts or benefits to the society and its
environment. The company and the society are not two separate entities that serve to exploit
each other. Therefore, a company is expected to increase its awareness. Corporate Social
Responsibility in Indonesia is regulated in PP No. 47, Year 2012 Article 4, Section 1 which
states that “Social and environmental responsibilities are executed by the directors based on the
company’s annual work plan after receiving approval from the board of commissioners or
RUPS in accordance with the company constitution, unless determined otherwise in the
legislation”. There are different forms of Corporate Social Responsibility, from educating the
importance of healthy living, free education, to empowering society. Corporate Social
Responsibility becomes a path for companies to create awareness towards social responsibility
in order to protect market share, shareholders, and the company’s sustainability for the future. A
sustainable success of Corporate Social Responsibility’s programs highly depends on both the
program providers’ and receivers’ commitment.
