Does CSR Disclosure Solve Social Conflicts Between Companies and Community? An Empirical Evidence

Abstract

This study aimed to investigate whether CSR programs can be used by companies to solve social conflicts between companies and communities. We conducted empirical tests using data gathered from the society living in the areas closed to mining companies (Cilegon and Cilacap, Indonesia) and company managers-who responded to our survey. The findings showed that CSR disclosures have not been able to solve social conflicts between companies and the society. This study indicated that there are differences in the views of companies and communities on the importance of CSR programs. Indeed, CSR programs which are seen as important by the community are not considered as essential by the companies. This implies that the community is not seen by the companies as an important and powerful stakeholder. Consequently, social conflicts will continue to occur as long as the companies do not pay attention to the public interests.

Keywords

• Social Conflict
• Social Responsibility
• Community
• Company