International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

Strengthening the Corporate Social Responsibility Regime in Indonesia
Marianne Magda Ketaren

Abstract
This work is aimed at exploring and finding appropriate approaches and methods in strengthening and accelerating the implementation of corporate social responsibility in Indonesia. This approaches will be focused on the embodiment of the coherence theory and revitalization of local wisdom. It is relevant to harmonize and accommodate many diametrical interests in the implementation of corporate social responsibility, such as government, corporate and societies’interests. This diametrical interes has blocked the implementation of corporate social responsibility optimally. In order to accommodate all related parties’interests, as well as accelerating the implementation of corporate social responsibility, this work introduces normative approach through the embodiment of coherence principle: (i) consistency; (ii) comprehensiveness; and (iii) inter-linked among components. In addition to strengthen the implementation of corporate social responsibility, this work also offers cultural approach that emphasizes the importance of the revitalization of local wisdom. In answering and achieving the goals, in its research, this work uses normative approach in addressing normative question, while empirical approach to answer the empirical issues and constructing appropriate model in revitalizing local wisdom. At the substantive level, in validating the implementation of the corporate social responsibility, this work applies the utilitarian and social function theories. While, at the normative framework, this work configures the Indonesian 1945 Constitution, Articles 27, 28, and 33 as fundamental normative framework, which is followed by the Law No.40/2007, article 74 in implementing corporate social responsibility. The results of this work provide not only normative guidance in harmonizing all diametrical interests and norms, but also introducing the local wisdom as core component in making public policy that strengthen and accelerate the implementation of corporate social responsibility in Indonesia and other interest countries.***

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