by Jan 16, 2023Insight

There have been many reasons that state why CSR is important for a company to implement. Legislation in Indonesia also states that CSR programs must be carried out by a company, as stated in Law Number 40 of 2007 concerning Limited Liability Companies (PT). However, what are the stages of a company actually having the motivation to carry out its CSR?

Saidi and Abidin (2004:69) created a matrix that describes three different stages or paradigms. The first stage is corporate charity, namely charitable encouragement based on religious motivation. The second stage is corporate philanthropy, namely the human drive that usually comes from universal norms and ethics to help others and fight for social equity. The third stage is corporate citizenship, namely citizenship motivation in order to realize social justice based on the principle of social involvement.

If mapped, it appears that the spectrum of this paradigm stretches from “just carrying out obligations” to “for the common good” or from “helping and doing charity to others” to “empowering humans”. Although it does not always apply automatically, in general, companies carrying out CSR are driven by charitable motivations, then humanity and finally citizenship. The following is a motivational table for Corporate Social Responsibility.