Does Corporate Social Responsibility Matters 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 corporate social responsibilities 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.