THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY IN INDONESIANN BANKING INDUSTRY

Abstract

Purpose- The purpose of this study is to evaluate the implementation of Corporate Social Responsibility (CSR) programs in Indonesiann banking industry especially banks categorized under BUKU 3 which means the banks having the capital range of 5-30 trillions.

Methodology- The analysis refers to the classification of CSR programs based on the category falling into environment, health, education, disaster, donation, employee, and product; and on CSR benefit or impact covering philanthrophy, promotion, business impact, and mindset-change. Using content analysis and census sampling technique, data were explored 2015-2018 annual reports of 15 member banks

Findings- The result showed that based on the Category classification, the banks’ CSR programs mostly were delivered to education, environment, and employees dominated taking 26%, 22%, 20% successively. The implication is that while those three categories are well supported, banks quite equally care of internal wealth. Anyhow, based on Benefit, the result showed that mindset change effect took only 7% leading to the implication that the level of CSR in banking industry is still low and this also refers that the community condition and country development are still relatively low.

Conclusion- The banks having good rank in the kind of CSR sectors are relatively also have good rank in CSR impacts which show good level in the CSR impact of promotion and business impact. By CSR sectors, the high coverage successively are education sector, environment, employees and donations. The impact of CSR dedicated for internal and external party are in balance. Specifically, by CSR impact, CSR is aware of promoting and caring for business impacts for the bank business sustainability. Anyhow, Indonesian banking industry show very weak role in helping change people mind set for better human quality

Keywords

• Corporate social responsibility,CSR Category,CSR Benefit,stakeolders,company image

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