The Institutionalization of Anti-Corruption Practices in Indonesian Companies

Abstract

The objective of this chapter is to explore the anti-corruption practices in Indonesian CSR best practice companies using the institutional theory. The methodology was based on focus group interview involving 10 CSR best practice companies; it was undertaken to obtain broader perspectives on anti-corruption practices. All respondent companies were involving their employees in anti-corruption practices in many ways. This study found that the institutionalization of anti-corruption practices is derived from both normative and mimetic isomorphism. Greater emphasis on integrating anti-corruption practices into CSR best practices would assist in enhancing awareness of the importance of anti-corruption practices, which in turn would improve the level of company’s trust and reliability. The anti-corruption practices in Indonesian CSR-based practice companies are applicable for general business activities and not specifically on CSR activities, such as charitable, sponsorship, donation, and community involvement. This is the first qualitative study that explores the anti-corruption practices in Indonesian companies. The study is important as corruption issues have been widely discussed in this country, and the Government is putting great efforts to combat corruption. Thus, this study brings valuable implications and insights to both academic and practical areas.

Citation

Gunawan, J. and Joseph, C. (2017), "The Institutionalization of Anti-Corruption Practices in Indonesian Companies", Modern Organisational Governance (Developments in Corporate Governance and Responsibility, Vol. 12), Emerald Publishing Limited, Leeds, pp. 147-159. https://doi.org/10.1108/S2043-052320170000012012