Corporate Social Responsibility Analysis as an Alternative Source of Regional Development Financing
Poni Sukaesih Kurniati (a); Suryanto (b)
a) Department of Government Science,
Universitas Komputer Indonesia
email: poni.sukaesih[at]email.unikom.ac.id
b) Department of Business Administration,
Universitas Padjadjaran
email: suryanto[at]unpad.ac.id
Abstract
The purpose of this study is to analyze the sources of development funding originating from Corporate Social Responsibility (CSR) funds from both private companies and State-Owned Enterprises (SOEs) in Bandung, West Java, Indonesia. CSR funds are funds that are set aside from profits earned by the company. Private companies carry out CSR programs due to demands from the Limited Liability Company Law whereas SOE companies carry out CSR programs because there are instructions from SOE ministries. The research method used in this study uses a qualitative approach to the type of exploratory research. Primary data sources were obtained from in-depth interviews with several informants. While secondary data obtained through tracking research results and documents relating to the use of CSR funds in the city of Bandung. The results showed that the implementation of CSR in the city of Bandung was running, but the implementation was still done partially. The company implements CSR programs in accordance with each companys policies. They run CSR programs only limited to spend the budget without analyzing whether the program is useful or not. The local government has not been involved in CSR activities carried out by each company. Local governments can actually optimize CSR funds by collaborating both in development planning and financing. However, the huge potential source of funding from CSR funds cannot yet become an alternative source of regional development funding.
Keywords: CSR; sources of financing; regional development
Topic: Government Science