EXTERNAL, INTERNAL AND CONTINGENT FACTORS IN THE IMPLEMENTATION OF CORPORATE SOCIAL RESPONSIBILITY IN INDONESIA

This study examines external, internal factors, and contingency factors. The novelty of this research is in adding a contingency factor as mediation between internal and external factors on Corporate Social Responsibility. The stakeholder theory, the contingency theory, and the theory of sustainability are used as the basis for testing the framework for internal, external and contingent factors as novelties that have not been tested in various models of CSR implementation before. The number of samples totals as many as 168 companies selected using a purposive sampling technique in industrial areas in five major cities in Indonesia, namely, Jakarta, Surabaya, Medan, Makassar and Balikpapan. The research was conducted from October 11, 2021 to February 25, 2022. The respondents of this study were managers or personnel who run CSR activity programs in each company. Respondents’ answers were received by sending questionnaires through email, Google form applications, and WhatsApp. Testing research data with path analysis proves that these three factors are significant in strengthening the implementation of CSR for companies. The path analysis test value of the three factors shows that external factors have a stronger influence on the company’s CSR implementation. Thus, this finding proves that stakeholders play an important role in providing pressure to strengthen CSR implementation and agrees with the theory of sustainability.