IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p5957-d1111077.html
   My bibliography  Save this article

Corporate Social Responsibility and Cooperatives Business Sustainability in Indonesia: Legal Perspective

Author

Listed:
  • Teguh Tresna Puja Asmara

    (Department of Economic Law, Faculty of Law, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Tarsisius Murwadji

    (Department of Economic Law, Faculty of Law, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Kartikasari

    (Department of Economic Law, Faculty of Law, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Anita Afriana

    (Department of Civil Law, Faculty of Law, Universitas Padjadjaran, Sumedang 45363, Indonesia)

Abstract

Corporate social responsibility (CSR) is the company’s contribution to sustainable development. In Indonesia, CSR is generally implemented by large companies in the form of limited liability companies (LLCs) and state-owned enterprises (SOEs). Regulations do not accommodate other forms of companies, such as cooperatives, to perform such social responsibility, which in terms of cooperatives is known as cooperative social responsibility (CoopSR). Instead, the cooperatives are only viewed as the implementing object by the LLCs and SOEs, while not encouraged to perform their social and environmental responsibilities. This article uses a legal dogmatic analysis research method, with the aim to analyze and assess the prevailing regulations concerning CSR and cooperatives. The study shows that, in Indonesia, there are no comprehensive regulations on CSR, but they are spread across various regulations incompletely based on the type of business entity. In the Indonesian Cooperative Law, there is no provision concerning cooperative values and principles on concern for the community, therefore cooperatives are not encouraged to implement CoopSR. To implement CoopSR, the legal and policy strategy needed is through the amendment to the Indonesian Cooperative Law, including CoopSR in the cooperatives’ articles of association and by-laws, and discussing and agreeing to its implementation at the meeting of cooperatives’ members.

Suggested Citation

  • Teguh Tresna Puja Asmara & Tarsisius Murwadji & Kartikasari & Anita Afriana, 2023. "Corporate Social Responsibility and Cooperatives Business Sustainability in Indonesia: Legal Perspective," Sustainability, MDPI, vol. 15(7), pages 1-23, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5957-:d:1111077
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/5957/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/5957/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chia-Hung Lee & Pei-Ing Wu & Je-Liang Liou & Shou-Lin Yang, 2022. "The Monetary Value of Corporate Social Responsibility: The Impact of Tea Trees Growing Project between Corporates and Taiwan’s Aboriginal Farmers on Consumers," Sustainability, MDPI, vol. 14(13), pages 1-18, July.
    2. Francisca Castilla-Polo & M. Isabel Sánchez-Hernández, 2020. "Cooperatives and Sustainable Development: A Multilevel Approach Based on Intangible Assets," Sustainability, MDPI, vol. 12(10), pages 1-14, May.
    3. Alexander Dahlsrud, 2008. "How corporate social responsibility is defined: an analysis of 37 definitions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 15(1), pages 1-13, January.
    4. Sung-Eun Kang & Choong-Ki Lee & Young-Joo Moon & Yae-Na Park & Courtney Suess, 2021. "Impact of CSR on Organizational Behavior during a Pandemic: Highlighting Public Health and Safety in the Airline Industry," Sustainability, MDPI, vol. 13(17), pages 1-17, August.
    5. Chih-Cheng Chen & Asif Khan & Tanaporn Hongsuchon & Athapol Ruangkanjanases & Yen-Tzu Chen & Ornlatcha Sivarak & Shih-Chih Chen, 2021. "The Role of Corporate Social Responsibility and Corporate Image in Times of Crisis: The Mediating Role of Customer Trust," IJERPH, MDPI, vol. 18(16), pages 1-20, August.
    6. Maripaz Muñoz Prieto, 2020. "Legislation, Regulations, and Reflections on Environmental Accounting as a Reflection of the Incorporation of Social Responsibility in Companies," Laws, MDPI, vol. 9(2), pages 1-19, June.
    7. Wulandhari, Nur Baiti Ingga & Gölgeci, Ismail & Mishra, Nishikant & Sivarajah, Uthayasankar & Gupta, Suraksha, 2022. "Exploring the role of social capital mechanisms in cooperative resilience," Journal of Business Research, Elsevier, vol. 143(C), pages 375-386.
    8. Abagail McWilliams & Donald Siegel, 2000. "Corporate social responsibility and financial performance: correlation or misspecification?," Strategic Management Journal, Wiley Blackwell, vol. 21(5), pages 603-609, May.
    9. Bialoskorski Neto, Sigismundo, 2007. "Um ensaio sobre desempenho econômico e participação em cooperativas agropecuárias," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 45(1), pages 1-20, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhonghua Zhao & Fanchen Meng & Yin He & Zhouyang Gu, 2019. "The Influence of Corporate Social Responsibility on Competitive Advantage with Multiple Mediations from Social Capital and Dynamic Capabilities," Sustainability, MDPI, vol. 11(1), pages 1-16, January.
    2. Deepa Sharma & Suman Chakraborty & Ashwath Ananda Rao & Lumen Shawn Lobo, 2023. "The Relationship of Corporate Social Responsibility and Firm Performance: A Bibliometric Overview," SAGE Open, , vol. 13(1), pages 21582440231, March.
    3. Lars Moratis & Max van Egmond, 2018. "Concealing social responsibility? Investigating the relationship between CSR, earnings management and the effect of industry through quantitative analysis," International Journal of Corporate Social Responsibility, Springer, vol. 3(1), pages 1-13, December.
    4. Joern H. Block & Marcus Wagner, 2014. "The Effect of Family Ownership on Different Dimensions of Corporate Social Responsibility: Evidence from Large US Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 23(7), pages 475-492, November.
    5. Mariusz Zieliński & Izabela Jonek-Kowalska, 2021. "Does CSR Affect the Profitability and Valuation of Energy Companies? An Example from Poland," Energies, MDPI, vol. 14(12), pages 1-24, June.
    6. Dustin Smith & Eric Rhiney, 2020. "CSR commitments, perceptions of hypocrisy, and recovery," International Journal of Corporate Social Responsibility, Springer, vol. 5(1), pages 1-12, December.
    7. Frederik Plewnia & Edeltraud Guenther, 2017. "The benefits of doing good: a meta-analysis of corporate philanthropy business outcomes and its implications for management control," Journal of Management Control: Zeitschrift für Planung und Unternehmenssteuerung, Springer, vol. 28(3), pages 347-376, October.
    8. Christel Dumas & Céline Louche, 2016. "Collective beliefs for responsible investment," Post-Print hal-01183744, HAL.
    9. Meng‐Feng Yen & Yung‐Ming Shiu & Chi‐Feng Wang, 2019. "Socially responsible investment returns and news: Evidence from Asia," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1565-1578, November.
    10. Luis Otero-González & Pablo Durán-Santomil & Luis-Ignacio Rodríguez-Gil & Rubén Lado-Sestayo, 2021. "Does a Company’s Profitability Influence the Level of CSR Development?," Sustainability, MDPI, vol. 13(6), pages 1-15, March.
    11. Riillo, Cesare Fabio Antonio & Sarracino, Francesco, 2014. "Motivations for Corporate Social Responsibility: all talk and no walk?," MPRA Paper 60211, University Library of Munich, Germany.
    12. Abdelmajid EL WAATMANI, 2018. "Industrial clusters and promotion of CSR: the case of developing countries," Journal of Academic Finance, RED research unit, university of Gabes, Tunisia, vol. 9(2), pages 69-80, December.
    13. Umit Alniacik & Esra Alniacik & Nurullah Genc, 2011. "How corporate social responsibility information influences stakeholders' intentions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(4), pages 234-245, July.
    14. Joanna Sawicka & Elżbieta Marcinkowska, 2023. "Environmental CSR and the Purchase Declarations of Generation Z Consumers," Sustainability, MDPI, vol. 15(17), pages 1-14, August.
    15. Jesús Dacio Villarreal Samaniego & Roberto Joaquín Santillán-Salgado & Luis Jacob Escobar Saldivar, 2022. "The Global Automotive Industry Stock Returns During the COVID-19 Pandemic," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(4), pages 1-21, Octubre -.
    16. Matteo Pozzoli & Marcello Raffaele, 2022. "Non-financial information and company market value," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2022(2 Suppl.), pages 167-187.
    17. Bongani Munkuli & Renee Horne, 2018. "Financial Markets Value Reputation for Corporate Social Responsibility (CSR) – A Study of the South African Mining Sector," Africagrowth Agenda, Africagrowth Institute, vol. 15(2), pages 17-22.
    18. Feifei Yu & Dong Jiang & Teng Wang, 2022. "The impact of green innovation on manufacturing small and medium enterprises corporate social responsibility fulfillment: The moderating role of regional environmental regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 712-727, May.
    19. Tiago Melo & Alvaro Garrido‐Morgado, 2012. "Corporate Reputation: A Combination of Social Responsibility and Industry," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 19(1), pages 11-31, January.
    20. Bastič Majda & Mulej Matjaž & Zore Mira, 2020. "CSR and Financial Performance – Linked by Innovative Activities," Naše gospodarstvo/Our economy, Sciendo, vol. 66(2), pages 1-14, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5957-:d:1111077. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.