Asian J. Sci. Res., 7 (1): 1-17, 2014
17 Pages Posted: 25 Aug 2014
Date Written: January 1, 2014
This research focuses on how corporate social responsibility practices (CSR) have evolved over time in one of big companies in Indonesia’s pulp and paper industry. One of the challenges faced by big companies working in renewable industry is to assure that every of its supply chain truly comply with the principles of environment protection. It underlines the transformation of CSR practices particularly community development since the establishment to the position which the company has been growing rapidly. As most companies in emerging economy context especially emphasize only for maximizing profits as business reason, this company shows different direction by also practicing community development programs in quite massive ways and producing better impact to the society.
Through in-depth case study, we argue that the company has been successfully created organizational trajectory to support their CSR practices since their establishment up to 2008. This research contributes in some ways as follows. First, by analyzing path-trajectory of CSR practices, it will enrich our understanding on how a big company as part of its global network develops its CSR practices, particularly in emerging economies context. Second, it provides the clearer evidences, milestones, and challenges of the importance of creating so-called CSR practices reflected local needs where the company exists. Third, in the end, it proposes further inquiry whether the company should continue make, buy or decide to collaborate in future CSR practices while the growth of its activities becomes mature and or changed rapidly.
Keywords: corporate social responsibility, community development, CSR trajectory, pulp and paper industry, Indonesian company
JEL Classification: M14
Suggested Citation: Suggested Citation
Mursitama, Tirta N. and Fakhrudin, Iman Yuniarto and Hasan, M. Fadhil, Evolving Practices of Corporate Social Responsibility in Indonesia's Pulp and Paper Industry (January 1, 2014). Asian J. Sci. Res., 7 (1): 1-17, 2014. Available at SSRN: https://ssrn.com/abstract=2485883