Does corporate social responsibility matter to consumers in Indonesia?

Abstract

Purpose

The purpose of this research is to examine consumers’ perceptions of corporate social responsibility (CSR) and to explore the impact of CSR on consumers’ support in Indonesia.

Design/methodology/approach

A convenience sample of respondents in Yogyakarta, Indonesia, was collected. The final sample consisted of 254 surveys.

Findings

The findings confirmed the applicability of Carroll’s (1979) categorization of CSRs to consumers in Indonesia but challenged the order of importance of these responsibilities. In addition, the results clearly indicated that perceptions of legal and philanthropic responsibilities significantly explained consumers’ support for responsible businesses. The results will assist managers operating in the developing countries, especially Indonesia.

Research limitations/implications

The sample was taken from one city (i.e. Yogyakarta) in Indonesia and may not represent all Indonesians, as it is a culturally diverse country. Thus, this limits the generalizability of the findings.

Practical implications

For businesses operating in Indonesia, it is important to focus on being a company that follows the regulatory system and supports various philanthropic activities such as poverty reduction, especially when half of the population in Indonesia lives just above the national poverty line. It has been shown that inoculation communication strategy will reduce perceived hypocrisy and mitigate its negative consequences.

Originality/value

The study examined consumers in Indonesia, the world’s fourth most populous nation. The results will provide some insights for multinationals operating in Indonesia.

Citation

Arli, D. and Tjiptono, F. (2014), "Does corporate social responsibility matter to consumers in Indonesia?", Social Responsibility Journal, Vol. 10 No. 3, pp. 537-549. https://doi.org/10.1108/SRJ-01-2013-0007