Critical Reading

No. Title Article Question/Issue addressed Key findings/arguments Supporting Evidence/ Sample Characteristics Limitations Significance/Implications

1 The Mandatory CSR in Indonesia: Problems and Implications (Waagstein, 2010) Impact of mandatory nature of CSR

Difficulties faced in Indonesia before and after CSR regulations are imposed.

Corporation Art. 74 Law No.40/2007 in Indonesia perceived as a bias regulation.

Contradictive regulations adopted in Indonesia (legal uncertainties).

Mandatory CSR has many advantages

Article 15 of the 2007 Investment Law No 25 stated that all corporations should bear this mandatory CSR. In contrast, Article 74 of the 2007 Limited Liability Corporation Law No. 40 only requires companies conducting their business activities in and or related to the field of natural resources to implement CSR. The article does not provide recommendations on how to handle issues surrounding mandatory CSR in Indonesia

2 Dealing with uncertainties when governing CSR policies (J Lepoutre, NA Dentchev, A Heene, 2007) There are three types of uncertainties associated with voluntary CSR: substantive, strategic and institutional uncertainties

Uncertainties of Voluntary CSR can be managed. Evidence mainly taken from case of CSR implementation in EU countries. This article does not provide evaluation on mandatory CSR, it only assuming common practice of voluntary CSR

3 The politics of corporates social responsibility in Indonesia (Rosser & Edwin, 2010) Many politics issues arise from implementation mandatory CSR by government of Indonesia. Voluntary CSR tends to encourage companies to invest in activities that increase companies profit or image.

On the other hand, mandatory CSR necessary to hold companies accountable for negative social or environmental impact Case of Lapindo mud volcano. This article focus on political issues, intriques around CSR.

4 Perception on CSR: A study in capturing Public confidence (Shauki,...