International Journal of Law and Management

Implementation of Javanese traditional value in creating the accountable corporate social responsibility
Pujiyono Pujiyono, Jamal Wiwoho, Wahyudi Sutopo,
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To cite this document:
Pujiyono Pujiyono, Jamal Wiwoho, Wahyudi Sutopo, "Implementation of Javanese traditional value in creating the
accountable corporate social responsibility", International Journal of Law and Management, https://doi.org/10.1108/
IJLMA-06-2016-0060
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 IMPLEMENTATION OF JAVANEESE TRADITIONAL VALUE IN
CREATING THE ACCOUNTABLE CORPORATE SOCIAL
RESPONSIBILITY

Keywords: Javaneese Value, Implementation, Corporate Social Responsibility.

1. Introduction
Corporate social responsibility (CSR) has been a famous term on the
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corporate operating, in the last century corporate social responsibility has

been discussed as a central issue in business. Shigeki Kusunoki said that
Hayek in 1960 published that criticized corporate social responsibility as a
form for economic organization, and he regarded the corporate to be subject
to essentially the same moral rules as individual action (Shigeki Kusunoki,
2015).
In many literatures and researches that have been conducted, shows that
CSR not only useful for the internal company needs itself, instrument
for establish a social responsible organization culture (Erwin, P.M, 2011),
but also for the public and environment around the company or government
authority where the company is located.
CSR concept was first proposed by Howard R. Bowen in 1953, in his
book entitled: Social Responsibilities Of The Business Man. Bowen
recommended to businessman, they should consider about CSR as part of
strategic planning and managerial decision making (Bowen and Howard R,
2013), but Bowen still proposes CSR as an moral ethic not as an obligation.
Although CSR concept is adopted from western system, actually in
Indonesia, especially in traditional Javanese culture, CSR is known in
other term as “pager mangkok”. This term has been practiced for many
years until now. In traditional Javanese culture, the implementation of social
responsibility as a moral ethic, that obligate not just for the businessman, but
the have one or rich people. That means, rich people should give assistance
to others that need help or aid, starts from the nearest one. Tough as a moral
 2

ethic, but the tradition gives full supervision for that implementation. The
rich people that do not implement CSR, the society would give a punishment
traditionally in their culture.
The form of a punishment is been communicated in the society.
Therefore, rich people should practices the CSR. Moral ethic looks like an
obligation in traditional Javanese culture. So, the implementation of social
responsibility can be maintenance of social coordination for increase the
public welfare, create the harmony in the society, and protects citizen`s
moral entitlements (Dubbink, W and Smith, J, 2011).
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CSR is not just a stand-alone, but also values and norms (Garsten, C.
2012). In modern era, Indonesia uses unification regulation to set CSR.
There is Act No. 40 year 2007 on Limited Company as a major regulation.
In this regulation CSR is a legal obligation that must be implemented by
the company, as defined in article 74 paragraph (1) of Act No. 40 year
2007 on Limited Liability Company. However, CSR regulation in Indonesia
still raises many problems in practice and confusion about that substance
and procedures (Waagstein, P.R., 2011). There are lacks of regulations on
the implementation of CSR. The set up mind of the regulation has been still
creating CSR just as a moral ethic but without full supervision. The other
lack is there has not been application regulation on government regulation
concern against the implementation standard, supervision nor impose
sanction. This regulation force the implementation of CSR based on
traditional Javanese culture must bow on rules. So that supervision of
society becomes weaker. Moral ethic at the CSR regulation is different with
Javanese culture. The regulation is minus supervision and sanction, but not
in Javanese culture.
There are many society`s complain because of the less
contribution from the company to the society. The form of company`s
contribution needed are financial, society development or make an harmony
to environment. Many corporate still have problematic in implementing the
CSR. In other part of all corporations, doing the CSR is because of external
driven. Some corporation in Indonesia who have problematic with the public
 3

or community because local communities that have been negatively affected

by corporate activity (Rosser, A and Edwin, D, 2010), and then the
corporation that we means is PT. Freeport (Rusmadi and Achmad Zaini.,
2008), PT. Newmont. Even PT. Newmont has been suspected as caused
pollution in Teluk Buyat, Indonesia (Kiki Lutfillah, 2011).
Actually, the development of CSR cannot be separated from the
concept of sustainability development that can make a good relation the
human needs of the present without compromising the ability of future
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generation. However, today many companies simplify the implementation

of CSR, without clear guidelines. The implementation of CSR is
currently less or minus legally responsible. This paper creates a model of
accountability of CSR to fill the legal vacuum that occurs at this time. This
paper formulates a good relation between traditional Javanese value,
government regulations and universal CSR principle. CSR activities should
not lead social activities only, CSR must be as the strategies to improve the
image of the company that would also affect the performance of the
company, increase the public welfare and create harmony in the society
and increase shareholder value at the same time to the sustainable
development of the societies in which they operate (Salvioni and Gennari, F.,
2016).

2. Method
This is based on empirical/sociology legal research. We study the
regulations and principles by using the approach of law and social sciences
(Irianto and Shidarta, 2009). Approaching the legal issues is in accordance
with the fact in social life. That characteristic is descriptive evaluative that
provides a systematic overview of the object to be examined (Suggono,
2005). The primary data is taken from interview with the senior source
relations of PT Pertamina Hulu Energi (PHE) in Jakarta, President Director
of PT Rosalia Indah Group in Surakarta and Your Honour Prince of
Surakarta Hanadiningrat Kingdom, Satryo Hadinagor. Secondary data are
obtained from the review of the literatures pertaining to the material.
 4

Secondary data consists of legal materials such as regulations, books, papers,

and other references. Data collection instrument is collected by means of in-
depth interviews and documents study (Neuman, 2006). Data analysis
technique use theoretical interpretative. The analysis is by providing
interpretation to the data that are collected by basing on the theoretical
background as a frame of thinking. This paper intends to provide an
overview of existing condition, rules and implementation of CSR and can
create harmony models of CSR between regulation, Javanese culture values
and universal principles.
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3. The CSR Implementation in Indonesia

Actually a CSR practice is a moral call as a responsibility of
business ethics, in which the implementations have a different standard
between one and the other corporation. John Elkington brings up an ideas
through “3P`s” concept (profit, people, and planet) as outlined in his

performance book “Cannibals With Fork: The Triple Bottom Line of 21st
Century Business (John Elkington., 1998). The ideas is based on “Triple
Bottom Line” which include prosperity or economic prosperity improving
the quality of the environment (environmental quality) and social justice that
realized from implementation of 3P (Hidayati, N.D. 2011). Profit as the
embodiment contribution for the economic development (Kresno Agus
Hendarto and B.M. Purwanto, 2012) aspects of the economy, people and the
planet as social aspects of environmental aspects. This confirms the idea that
company is not only as a business entity / economic profit, the company
also must pay attention and be involved in compliance and increase social
welfare and should contribute actively to protecting the environment. In
Indonesia, the main foundation of CSR is Act No. 40 year 2007,
regarding Limited Liability Company, which recognize CSR with the term
Corporate Social Responsibility and the Environment (TJSL), which is the
company's commitment to participate in the sustainable economic
development to improve the quality of life and the environment that benefits
for the company itself, the local community and society in general.
 5

There are several other regulations as a legal basis, among others:

Government Regulation No. 47 year 2012 on Corporate Social
Responsibility and Environment Company Limited, Act No. 25 year 2007
on Investment, Act No. 4 year 2009 on Mineral and Coal, Act No. 32 year
2009 on the Protection and Environmental Management, Act No. 22 year
2001 on Oil and Natural Gas and Minister of State-Owned Enterprises
Regulation No. PER-08/MBU/2013 Year 2013 regarding Fourth
Amendment to the Regulation of the State Minister for State-Owned
Enterprises No. PER-05/MBU/2007 on Partnership Program State Owned
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Enterprise with Small Business and Community.

Regulation that owned by the government of the Republic of Indonesia
has fundamental flaws, which lacks of penalties for corporations that do not
implement CSR. As a result, most companies take advantage of CSR simply
as a marketing gimmick to conduct corporate green wash (SGEM, 2015).
CSR is implemented only for imaging company in politics. CSR fund
allocation is still a company`s secret, becomes evidence of a lack of
transparency for companies to manage and provide social cost to society.
Even, can be found some companies also collect donations from the public
for disaster relief, but in the distribution of aid, they use the name of a CSR
company. Many disasters in Indonesia allow these deviations, ranging from
floods, earthquakes, and forest fire. The burning of thousands of hectares of
Indonesia's forests in addition to shortages of the world's lungs, also lead to
disaster smoke up to Singapore and Malaysia which have killed at least 10
casualties and millions of people were stricken with respiratory infections
and the potential of developing lung cancer.
Many oil palm plantation companies that has 2,000 hectares to over
50,000 hectares in Sumatra. There are still companies that do not have the
commitment to implement CSR and some even do not care about CSR
program. The corporation feels enough to become taxpayers, even large
corporations do not hesitate to burn forests for opening new land for palm
plantation that resulting in smoke disaster. For example is, one of the
subsidiaries of PT Sinar Mas that sued by the government of Indonesia
 6

Rp. 7, 8 trillion (Utami and Anggi, 2015). The corporations that operate
in Indonesia implement CSR for a public relations campaign. They only
have little sustaining program.
Actually, there is a polarization in the implementation of CSR. For
government- owned company, they are already bound by the provisions
of the Regulation of the Minister of State-Owned Enterprises No. PER-08
/ MBU / 2013 Year 2013 regarding Fourth Amendment to the Regulation
of the State Minister for State-Owned Enterprises No. PER-05 / MBU /
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2007 on Partnership Program State Owned Enterprises with Small business

And Community Development Program. For example PT Pertamina Hulu
Energi (PHE) which has set up an average of about 1% of company's net
profit a year earlier, conduct focus program initiatives in the four pillars
(Education, Health, Environment and Community Development and Disaster
Relief, that is known the Partnership Program and Community
Development. In addition, PT PHE has also established internal regulations
regarding CSR (PKBL) in the Guidelines for the Management Activity
Social Responsibility and Environment. This rule is regulating CSR goals,
scope, references, activity planning, monitoring, evaluation and reporting.
Regarding of the planning and budgeting program is prepared in a manual
book of Action Plan, Budget and Financing of Pertamina CSR on annual
basis, which includes a CSR work plan in all areas operations of Pertamina.
For CSR, there is already operational working target regarding the conduct
of operations. While the determination of the amount of CSR activity plan
budget is passed through the mechanism of General Meeting of
Shareholders. To be more focused in carrying out CSR programs, PT
PHE formed Pertamina Foundation (PF) which is bound in the annual work
program, nevertheless PT PHE still opens partnership mechanisms, which is
bound with an agreement of cooperation, both with Universities, NGO,
Social Foundation, various other non-profit organizations to work together in
the implementation of CSR.
Different conditions with private corporations, according to (Achdiat,
B.T, 2008) a lot of issues linked to unacceptable behaviour company, are
 7

premised on profit rather than engagement with the community. The

implementation of CSR is just as moral ethic and has not become a serious
concern, especially for local companies. For example is PT Rosalia Indah,
the fleet company of public transport in Karanganyar, Central Java.
Implementation of CSR is unstructured grants. The implementation is done
toward feast of Muslims, Eid or upon request of citizens. Regulation by
the government does not guarantee the implementation of CSR as a form of
programmed, monitored and evaluated activities. The condition is
exacerbated by the absence of government as a catalyst. The government has
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not been optimal in providing stimulus program, in the form of strong

regulation and stimulus which gives financial benefits to corporations, a
tax deduction as an example.

4. Synchronizing javanese traditional values and universal CSR Principles

Within the framework of the company, must ensure the legal
guarantees, as far as the ethical standards and international norms shall be
assured as well (Nangopoulos, N et al., 2015). CSR is no longer considered
a social gift from the company to the environment, but has become a
parameter to improve performance and reputation of the company to the
market, (Markowitz, M.R., 1972) uses the reputation to assess social
responsibility of the company. (Spicer, B.H., 1978) also stated that the
implementation of CSR by companies can increase public trust in the social
responsibility that affects the perception and investor decisions. The essence
of the universal principles of CSR is a liability, sensitivity and moral ethics.
Substantively, CSR universal principles have been accommodated
within the traditional values of Java. Java is not just the name of the island
or ethnic group in Indonesia, but Java is the largest ethnic group in
Indonesia. The ethnicity value influence is most dominant in Indonesia and
spread from government officials, political leaders up to the community in
general in Indonesia (Irawanto, DW et al., 2011). Java as an effect could be
identified through a philosophy that is owned and thrive for generations.
This philosophy is core of a culture that reflects the values of decency and
 8

morality, belief systems, attitudes and behaviour, social systems, rituals and
artefacts as cultural products, that will be realized in manner of speak and
behave (Spencer et al., 2001).
(Koentjaraningrat, 1985) describes the culture in some aspects,
namely; ideas, thought, values, norms, activities, behaviour and work.
Characteristic of Javanese culture lies in the extraordinary ability to survive,
but to survive in its authenticity (Franz Magnis Suseno, 1988), which then
form the local wisdom. Local wisdom is a way of life, science and life
strategies of intangible activities, carried out by local communities in
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responding to various problems in meeting their needs, including solving the

problem of CSR implementation. Local wisdom can manifest as substance
greeting as well as practical life. As the substance of speech, wisdom
incarnate as a statement of wisdom in the form of songs, proverbs, sasanti
(moto) advice, slogan and messages presented prosaically or poetically
(Pujiyono, 2014). But most of them, is in the form of philosophy. Many still
believe that the philosophy of Java is considered as old-fashioned and out-
dated. In fact, the philosophy goes on and lives throughout the ages.
Even, it could add insight of wisdom in the present context. For
example is in the implementation of CSR by companies. The philosophy
should inspire as it is still very relevant. Some philosophies include:
a. Ngono ya ngono ning aja ngono
This philosophy means: So is so but do not so!
This philosophy means that, basically companies in the operations
are free to explore the source of income of the economy, with the
aim to earn big profits. However, this philosophy stresses that these
freedoms have limit. The limit lies not only on formal rules made by
the government, but lies in politeness, courtesy and decency in the frame
of ethics.
In modern business environments include corporate social
responsibility, ethical behaviour plays a crucial role in the success of
corporate. The manager or business leaders must pay close attention to
the ethics of their policies and behaviours to avoid a reputation-crushing
 9

scandal in their corporate1. In a simple way, this philosophy can be

summed up with responsible freedom. Although the companies can
achieve the economic potential they want, but should still be
considered again the values of truth that will happen, don’t do whatever
we want even though we are able to do. The message is very precise
socialized to companies that have huge capital resources in the
exploitation of nature and the environment. Likewise in getting the profit,
though all the profit can be enjoyed by the company itself, part of the
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profits should be distributed or returned to the community. Shares or

returns are called CSR. The form may be direct grants, community
economic development, environmental conservation program or other
form that is beneficial to the environment and surrounding communities.
b. Jer Basuki Mawa Beya
This philosophy means that there is no success without sacrifice.
Company as an economic entity must affirm themselves in society as a
social entity. If the company wants its presence in the midst of society to
be well received, then the company should give benefit to the
surrounding community as well. There is no success without sincerity
and efforts. Success is not solely come from the sky, but it needs to be
pursued with energy and a number of sacrifices. One of the ways is to
implement CSR that can provide benefits to the environment and
surrounding communities. Expediency which can be perceived by the
public will have an impact with the recognition of the company's
existence as a social entity in the middle of the community. In addition
to the company's CSR has function as insurance against the risk of the
reputation that can harm the company's profit outlook and values
(Hediger, W, 2010), Success requires costs. According to (Sen and
Bhattacharya, 2001), there is a need the grant of information so that
consumers can sanction companies that are not considered sincere in
their activities.
c. Bebrayan agung: ing ngarsa asung tuladha, ing madya mangun
karsa, tut wuri handayani
 10

In public life, mixing with the surrounding environment, so as an

economic entity the company have greater power than the members of
the surrounding community, and therefore always be in the front.
Companies must be able to set the example in managing the
environment and society, that is the meaning ing ngarsa sung tuladha,
the front can give an example of goodness. Environmental and
community management must be programmed as part of a business plan,
that's CSR.
While Ing Madya Mangun Karsa means that at the centre should
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be able to be goodness mover. Company as a social entity must

understand their role as part of other community members. Therefore,
when in the middle of community, the corporate must move the social
dimension of economic activity and the surrounding environment, to
build value between companies and communities (Sharma, R.S et al.,
2012).
Tut Wuri Handayani has meaning when in the back should be
able to be a supporter. There are times when as a member of the
public, company's existence is not in front, but behind just as member.
However, when it is behind the company should not be passive, must
remain active with the empowering potential of economic capital and to
encourage activities that exist in society. In the implementation of the
concept of CSR, companies only provide direct grants to provide a
stimulant as well as a boost to existing activities in the community.
d. Pager Mangkok Luwih Kuat Tinimbang Pager Tembok
Fences of bowl are stronger than the wall. Mangkok or bowl is a
food container, usually mangkok is a place to put gravy, typical of
Javanese cuisine. Bowls are made of glass which is easily broken when
falling or hit by hard object or hard collision. But the meaning is taken
not because it is made of glass, the philosophy of bowl as food
containers. One of customs in Javanese community is sharing in food.
When finished cooking, then some foods will be distributed to the
surrounding neighbours. This habit of mutual feeding is manifested in
 11

the form of a bowl. This habit makes the society more harmonious.
Food is not an expensive item but become everyone's needs. Therefore,
the provision of food in addition to create harmony also create security
and tranquillity, for their mutual respect, mutual understanding and
mutual safeguard, that is built from mutual activity by giving food
among its citizens. Life in the community should be built as in the
family. Security of each member of society is kept together and can be
realized because each regards as family.
While the fence wall is a wall made of solid concrete and usually
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built around buildings. The Objectives of establishing a solid concrete

wall is to protect the security at locations that surrounds the buildings. In
order for existing assets in the building remains intact, not stolen or
threatened by other security disturbance.
In the concept of the architect, perhaps by building a towering wall
is security assurance for the asset inside. In philosophy in bowl fence
is stronger than the wall fence (Pager Mangkok Luwih Kuat
Tinimbang Pager Tembok), the value to be conveyed is that the safety
of self or company will be realized with the attitude of
inclusiveness/openness to share (sharing a meal in a bowl). By
building a solid concrete wall that does not mean security will definitely
be realized, it will actually create exclusiveness. Company as an
economic entity in the community, have to portray themselves as a
social entity that is honest, reliable, and caring about the overall welfare
of society (Gossling, T and Vocht, C. 2007). Its existence in society
must be proven by contributions, not with luxurious buildings or
factories. Contributions should be tailored to the needs and expediency of
the surrounding communities. With the measurable and continuously
contributions, the residents of the surrounding community will also help
maintain security companies. Even when the companies in certain matters
need help from the community, then the community consciously and
spontaneously would help. Thus contribution of company is called CSR.
 12

5. Maximizing the Role of Javanese Cultural Values in the implementation of

CSR
CSR is a corporate obligation, so the perception that CSR is charity
(Suryasaputra, et al., 2011) or generosity is a mistake. The obligation of CSR
has been presented in various regulations. The problem is the management of
CSR still encounters many problems. Problem CSR implementation is
accountability. As a result of the lack of accountability, a number of
deviation implementation of CSR is often occur, ranging from programs that
are not on target up to making CSR as promotion activities by the
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company. In fact, according to (Hendarto, 2008), most companies in

Indonesia implement CSR in the form of donations, in which it is difficult to
distinguish whether the donation is given deliberately or planned in the
program of the company or individual motivation of the corporate
executives. In order to reduce these impacts, some companies has already
implemented various International CSR standards and guidelines, including;
ISO 26000, Ten Principles of the United Nations Global Compact, the RSPO
(Roundtable for Sustainable Palm Oil), the OECD Guidelines for
Multinational Enterprises, the United Nations Guiding Principles on
Business and Human Rights, The Equator Principles, and Better Coal
Principles.
The use of international standards should be appreciated, because in
addition CSR is voluntary activity, also carried out by a few among the
companies in Indonesia. The rest considers CSR is a burden, or at least is a
charity that is given when there is sincerity. Besides the values of Javanese
tradition do not teach that way, concern is not only call of sincerity, but the
Javanese philosophy teaches that the awareness is a requirement. The
implementation of CSR should be designed right on target and sustainable.

Therefore, the conditions for the effective implementation there

should be monitoring or evaluation. The absence of sanctions in the
regulation on CSR in Indonesia must be bridged with a strong social control.
Social control is institutionalized in cultures that contained in the share of
value / philosophy. Basically, Javanese philosophy is the values, customs
 13

and norms that manifest into the culture in a society which is called the
culture that ensures balance and harmony. Movement of each entity in
society leads to equilibrium or the social order, so anything contrary or
deviate is considered destructive and anti-social. The balance will create
peace for the realization of social order condition, it’s characterized by
social cohesion and stability (Alan Swingewood, 1991).

Talcott Parsons put forward ideas about the relationship between

the individual and the environment that are realized on a theory, Functional
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Structural. The social system is made up of individual actions, but the

actions of individuals are moving toward balance and stability. Demand or
the need for balance and stability makes humans not entirely be in a free
state, but conditioned to be bound to the structure in their location.
Individuals as members of the community and members of smaller groups
always have an interest in the group and togetherness. That is why,
personally and socially, they are compelled to take part in the social process.
Guaranty of coexistence by the group, and it identifies a common goal,
indeed, beyond the personal interests of its members, even subdue under
interest group as a whole (Talcott Parsons, 1971). Likewise is expressed by
(Bryan S Turner, 1991).
The fundamental starting point is the concept of social systems of action.
The interaction of individual actors, that is, takes place under such
conditions that it is possible to treat such a process of interaction as a
system in the scientific sense and subject it to the same order of
theoretical analysis which has been successfully applied to other types of
systems in other sciences.
Thus is the existence, so that Javanese traditional values could be
internalized in the implementation of CSR, then it should be articulated as
that adopted culture, recognized and institutionalized socially. So the fear is
no longer a legal sanction, but the social sanctions. According to Parsons, to
achieve conditions of social order is not easy because there are many
different personality systems are mutually competitive in a society. To
realize the social order is required at least two main mechanisms, namely the
mechanisms of social control by the norms and mechanisms of socialization.
 14

These two mechanisms regulate normatively the passion and character of

individual competitive to achieve a consensus (Bryan S Turner, 1991). The
attitude of the ego agents will disrupt social order conditions. Thus is stated
by Turner (Bryan S Turner, 1991).
The situation is defined as consisting of objects of orientation, so that the
orientation of a given actor is differentiated relative to the different
objects and classes of them of which his situation is composed. It is
convenient in action terms to classify the object world as composed of the
three classes of “social,” “physical,” and “cultural” objects. A social
object is an actor, which may in turn be any given other individual actor
(alter), the actor who is taken as a point of reference himself (ego), or a
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collectivity which is treated as a unit for purposes of the analysis of

orientation. Physical objects are empirical entities which do not
“interact” with or “respond” to ego. They are means and conditions of
his action. Cultural objects are symbolic elements of the cultural
tradition, ideas or beliefs, expressive symbols or value patterns so far
as they are treated as situational objects by ego and are not
“internalized” as constitutive elements of the structure of his personality.

Action. Since in the culture there are the norms and values that
must be obeyed by the individual to achieve the objectives of the culture
itself. Values and norms will be internalized by the actor inside
himself/herself, as a process of personality system in order to form the
individual as expected in the cultural system. Parsons argues that the cultural
system is the same with others system of action. Thus, culture is a
system of symbols which are patterned and structured orientation means
actors, personalities internalized aspects of the system, and patterns that
become institutionalized in social systems. Thus, culture is a system of
symbols that is patterned and arranged, it is a means of actors’ orientation,
internalized of aspects of personalities system, and patterns that become
institutionalized in social systems. This means that the cultural system can
be regarded as a personality system controller (Stanley Cohen and Andrew
Scull. 1983).
Melville J. Herstkovits and Bronislaw Malinowski who argue that
people with different cultures have the ability to determine, they call it as
Cultural determinism, which means that everything in society is determined
by culture that are owned by society. So culture is super-organic entity,
 15

having capabilities that exceed the ability of an institution, because culture

is passed down from generation to generation still lives on, although
people who become members of the community always turns due to
birthrate and Mortality (Soerjono Soekanto, 2004), and to streamline the
individual morality depends on social conditions around (Gossling, T. 2003).
Based on the above ideas, the researchers can conclude that the
existence of culture cannot be separated from society itself, and vice versa.
Culture is reference of orientation values, norms, rules and guides the daily
behavior of community members in the group life and in the lives of
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himself/herself as a person. Culture serves as a tool to monitor and control

society all at once. With the supervision and control of the public in the
form of this culture, it is expected to restore harmony in society. If members
of the public to make mistakes or violations, they are expected to soon be
back on the road of culture in society. The culture road is behavior and
norms that are recognized and existing in the community. Nevertheless, the
social control will be sanctions when a member of the public who commits
an offense or the guiltiness is not immediately back to the culture road.
Social control is ran in the form of restitution and repressive sanctions. It is
similar with the implementation of CSR. If the corporate as social and
economic entity, is inattentive and indifferent to the implementation of
CSR accountability, can lead to two cultural sanctions, namely
repressive and restitution. Social control is formal and informal. The law
norms of formal social control is written and come from parties who have
the power and formal authority, while in the law norms of informal social
control is unwritten, such as, religion education, stories or legends (Usman
Pelly and Asih, 1994).
Sanctions against members of the community who deviate is
just, like expulsion from the village where he/she lives. Repressive
sanctions occur when the society has more mechanical solidarity. For
example, the firebug of forest will be considered a crime culturally and
will be punished in order to reply to the collective consciousness that is
being violated by the crime. The punishment is done to maintain the
 16

integrity of consciousness. On the contrary, in societies with organic

solidarity, sanctions will be more predisposed restitution. A restitution
sanction is a notice or warning from the community to its members who
deviate, so the members know his actions were wrong. The aim of sanctions
is not to punish but to restore normal activity of a complex society. How
culture is reflected in the Javanese philosophy to strengthen CSR activities,
is depicted in the following chart.
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Figure 1

Increasing The Welfare Javaneese Community

of Community

Culture/Traditionale
Restitutive or/and Values/Javaneese
Represive Sanction Filosophy Empowering Community

Corporation

Absence on CSR or Good Implementation on

Bad Implementation on CSR CSR

CSR is implemented by the corporation with one of the goals is

to improve the welfare of society. In the Java community that still
upholds the values of the Javanese traditional philosophy the
implementation of CSR will be well controlled, if there are corporations
that do not implement or carelessly in implementing CSR will get
sanction from society. These sanctions will force corporations to
implement CSR well. If corporations implement CSR well, the
corporations have empowered and improved the community. Therefore
 17

the role of the values of the Javanese traditional philosophy is very

important to always live and thrive in the Java community.

6. Conclusions
In Indonesia, the main foundation of CSR is the Act No. 40 of 2007 on
Limited Liability Company which recognizing the term of CSR with Social
and Environmental Responsibility, that is supported by various other
regulations. But the existing regulations have a fundamental weakness,
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namely the absence of penalties for corporations that do not implement or

implement CSR not seriously. This regulatory loophole is used by many
corporations who implement CSR as gimmick or imaging. The universal
principles of CSR talks about liability, sensitivity and moral ethics. Some
Javanese philosophy that is in accordance with the universal principles of
CSR are: Ngono Ya Ngono Ning Aja Ngono, Jer Basuki Mawa Beya,
Bebrayan Agung : ing ngarsa asung tuladha, ing madya mangun karsa, tut
wuri handayani, Pager Mangkok Luwih Kuat Tinimbang Pager
Tembok. Implementation of CSR will be able to achieve its goal to improve
the welfare of society when the implementation can be controlled and
corrected. Controlling and correcting can be done in the tradition of
Javanese society through the values of the Javanese traditional philosophy
with the condition that it should be articulated as adopted culture,
recognized and institutionalized socially. So it has two influential sanctions
namely restitution and repressive. Thus the implementation of CSR will
always be in track to empower and improve the welfare of the community.

7. Recommendations
a. It needs the institutionalization of the values of the Javanese traditional
philosophy in regulation to ensure the enactment of the effects
positively.
b. The government and the legislature must have a strong legal politics
to dig the values of the Javanese traditional philosophy in controlling
and evaluating the implementation of CSR.
 18

c. Corporations should also be able to adjust to the culture of the

surrounding community to realize the harmony and social order.

8. Acknowledgements
Thanks to the senior source relations of PT Pertamina Hulu Energi (PHE)
in Jakarta, President Director of PT Rosalia Indah Group in Surakarta and
Your Honour Prince of Surakarta Hanadiningrat Kingdom, Satryo
Hadinagor.
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