Understanding the Practices of Strategic CSR in Controversial Industry: Case of Tobacco Company in Indonesia
DOI:
https://doi.org/10.14421/jpm.2022.061-04Keywords:
Corporate Social Responsibility, Indonesian Tobacco Company, Controversial IndustryAbstract
How do tobacco companies take responsibility for social issues under the business existence on health problems and economic issues. The research focuses on a small amount of research in corporate social responsibility (CSR) duty under Tobacco Company. Through the Sampoerna Retail Community (SRC), PT HM Sampoerna Tbk shows a different takes problem-solving of CSR on controversial issues. Through qualitative research, the data, primary data (interviews and observations) and secondary data (documentation studies), coded and analyzed using keywords derived from theory. This study found that CSR in cigarette companies is a form of controversial industrial business strategy that departs from considering business processes' internal and external conditions. The results show SRC is a way for companies to be socially responsible by articulating external conditions (outside-in) dominated by public restrictions on tobacco products and as an internal strategy (inside-out) that departs from the logic of business sustainability. SRC is a form of company compliance with several state regulations, restricting cigarette products and preventing children's access to cigarettes as an outside-in strategy. In the inside-out context, SRC is the company's strategy to ensure all consumers can reach products, collaborating with Fast Moving Consumer Goods (FMCG) companies as an alternative to the uncertainty of controversial industry conditions, and reducing CSR costs.
Abstract viewed: 657 times
|
PDF downloaded = 75 times
References
Akeem, A., & Edwin, M. (2016). Vision and Mission in Organization : Myth or Heuristic Device ? The International Journal of Business and Management, 4(3), 127–134.
Anthony, S. O. (2012). Influence of Vision and Mission Statement on Organizational Effectiveness : An Appraisal of a Private Sector Experience in Nigeria . The Pacific Journal of Science and Technology, 13(1), 389–397. http://www.akamaiuniversity.us/PJST.htm
Appau, A., Drope, J., Witoelar, F., Lencucha, R., & Chavez, J. J. (2019). Why do farmers grow tobacco? A qualitative exploration of farmers perspectives in Indonesia and Philippines. International Journal of Environmental Research and Public Health, 16(13). https://doi.org/10.3390/ijerph16132330
Aqueveque, C., Rodrigo, P., & Duran, I. J. (2018). Be bad but (still) look good: Can controversial industries enhance corporate reputation through CSR initiatives? Business Ethics, 27(3), 222–237. https://doi.org/10.1111/beer.12183
Azzahro, E. A., Dewi, D. M. S. K., Puspikawati, S. I., Handayani, R. P., Ayodya, G., Prayogi, A. R. I. Y., & Sebayang, S. K. (2021). Two tobacco retailer programmes in Banyuwangi, Indonesia: A qualitative study. Tobacco Control. https://doi.org/10.1136/tobaccocontrol-2020-055834
Banks, G., Scheyvens, R., McLennan, S., & Bebbington, A. (2016). Conceptualising corporate community development. Third World Quarterly, 37(2), 245–263. https://doi.org/10.1080/01436597.2015.1111135
Bhattacharyya, S. S. (2010). Exploring the concept of strategic corporate social responsibility for an integrated perspective. European Business Review, 22(1), 82–101. https://doi.org/10.1108/09555341011009025
Bialous, S. A. (2019). Impact of implementation of the WHO FCTC on the tobacco industry’s behaviour. Tobacco Control, 28(October 2018), S94–S95. https://doi.org/10.1136/tobaccocontrol-2018-054808
Cai, Y., Jo, H., & Pan, C. (2012). Doing Well While Doing Bad? CSR in Controversial Industry Sectors. Journal of Business Ethics, 108(4), 467–480. https://doi.org/10.1007/s10551-011-1103-7
Elfajri, S. N. (2019). Analisis Implementasi Konsep Creating Shared Value (CSV) sebagia Strategi Keberlanjutan Perusahaan : Studi Kasus Danone Aqua Klaten (2004-2017). Journal of International Relations, 5(1), 1015–1022. http://ejournal-s1.undip.ac.id/index.php/jihi
Eriandani, R., & Wijaya, L. I. (2021). Corporate Social Responsibility and Firm Risk: Controversial Versus Non-controversial Industries. Journal of Asian Finance, Economics and Business, 8(3), 953–965. https://doi.org/10.13106/jafeb.2021.vol8.no3.0953
Grougiou, V., Dedoulis, E., & Leventis, S. (2016). Corporate Social Responsibility Reporting and Organizational Stigma: The Case of “Sin” Industries. Journal of Business Research, 69(2), 905–914. https://doi.org/10.1016/j.jbusres.2015.06.041
Holweg, M., & Helo, P. (2014). Defining value chain architectures: Linking strategic value creation to operational supply chain design. International Journal of Production Economics, 147(PART B), 230–238. https://doi.org/10.1016/j.ijpe.2013.06.015
Hsu, A., Koh, K., Liu, S., & Tong, Y. H. (2019). Corporate Social Responsibility and Corporate Disclosures: An Investigation of Investors’ and Analysts’ Perceptions. Journal of Business Ethics, 158(2), 507–534. https://doi.org/10.1007/s10551-017-3767-0
Hurt, R. D., Ebbert, J. O., Achadi, A., & Croghan, I. T. (2012). Roadmap to a tobacco epidemic: Transnational tobacco companies invade Indonesia. Tobacco Control, 21(3), 306–312. https://doi.org/10.1136/tc.2010.036814
Kementerian Lingkungan Hidup dan Kehutanan. (2020). PROPER: Masa Pandemi Masa untuk Peduli & Berbagi.
Kilian, T., & Hennigs, N. (2014). Corporate social responsibility and environmental reporting in controversial industries. European Business Review, 26(1), 79–101. https://doi.org/10.1108/EBR-04-2013-0080
KPMG. (2017). The Road Ahead: The KPMG Survey of Corporate Responsibility Reporting 2017 (Vol. 10). https://doi.org/10.1007/978-3-319-21257-9_7
Kramer, M., & Porter, M. E. (2011). Creating shared value: How to Reinvent Capitalism—And Unleash a Wave of Innovation and Growth. Harvard Business Review, 327–350. http://www.hks.harvard.edu/m-rcbg/fellows/N_Lovegrove_Study_Group/Session_1/Michael_Porter_Creating_Shared_Value.pdf
Lee, S., Ling, P. M., & Glantz, S. A. (2012). The vector of the tobacco epidemic: tobacco industry practices in low and middle-income countries. Cancer Causes & Control : CCC, 23 Suppl 1, 117–129. https://doi.org/10.1007/s10552-012-9914-0
Leventis, S., Hasan, I., & Dedoulis, E. (2013). The cost of sin: The effect of social norms on audit pricing. International Review of Financial Analysis, 29, 152–165. https://doi.org/10.1016/j.irfa.2013.03.006
Lindorff, M., Prior Jonson, E., & McGuire, L. (2012). Strategic Corporate Social Responsibility in Controversial Industry Sectors: The Social Value of Harm Minimisation. Journal of Business Ethics, 110(4), 457–467. https://doi.org/10.1007/s10551-012-1493-1
Madhani, P. M. (2021). Retail Supply Chain Management: Building a Customer-Focused Approach with Competitive Priorities Retail Supply Chain Management: Building a Customer-Focused Approach with Competitive Priorities. The IUP Journal of Supply Chain Management, 18(September), 7–27.
Marques-Mendes, A., & Santos, M. J. (2016). Strategic CSR: An integrative model for analysis. Social Responsibility Journal, 12(2), 363–381. https://doi.org/10.1108/SRJ-04-2015-0055
Martinuzzi, A., & Krumay, B. (2013). The Good, the Bad, and the Successful - How Corporate Social Responsibility Leads to Competitive Advantage and Organizational Transformation. Journal of Change Management, 13(4), 424–443. https://doi.org/10.1080/14697017.2013.851953
Mayer, C., & Roche, B. (2021). Putting Purpose Into Practice: The Economics of Mutuality (C. Mayer & B. Roche (eds.); 1st ed.). Oxford University Press. https://doi.org/10.1093/oso/9780198870708.001.0001
Palazzo, G., & Richter, U. (2005). CSR business as usual? the case of the tobacco industry. Journal of Business Ethics, 61(4), 387–401. https://doi.org/10.1007/s10551-005-7444-3
Park, Y. R., Song, S., Choe, S., & Baik, Y. (2015). Corporate Social Responsibility in International Business: Illustrations from Korean and Japanese Electronics MNEs in Indonesia. Journal of Business Ethics, 129(3), 747–761. https://doi.org/10.1007/s10551-014-2212-x
Porter, M. E., & Kramer, M. R. (2007). Strategy and society: the link between competitive advantage and corporate social responsibility. Strategic Direction, 23(5), 78–92. https://doi.org/10.1108/sd.2007.05623ead.006
PT HM Sampoerna Tbk. (2021). Laporan Tahunan Sampoerna 2020. https://www.sampoerna.com/resources/docs/default-source/sampoerna-market-documents/annual-reports/laporan-tahunan-2020.pdf?sfvrsn=8ccc95b4_2
Simatupang, E., & Yoga Swara, V. (2018). Creating Shared Value di Industri Migas: Pelajaran dari Balongan dalam Meminimalisir Pengangguran dan Menekan Potensi Kecelakaan Kerja. Jurnal Pemberdayaan Masyarakat: Media Pemikiran Dan Dakwah Pembangunan, 2(1), 67–90. https://doi.org/10.14421/jpm.2018.021-04
Song, B., Wen, J., & Ferguson, M. A. (2020). Toward effective CSR communication in controversial industry sectors. Journal of Marketing Communications, 26(3), 243–267. https://doi.org/10.1080/13527266.2018.1536887
Stead, M., Eadie, D., Purves, R. I., Moodie, C., & Haw, S. (2017). Tobacco companies’ use of retailer incentives after a ban on point-of-sale tobacco displays in Scotland. Tobacco Control, 27(4), 1–7. https://doi.org/10.1136/tobaccocontrol-2017-053724
Vergne, J. P. (2013). Stigmatized categories and public disapproval of organizations: a mixed methods study of the global arms industry (1996–2007). Academy of Management Journal, 55, 1027–1052.
Vorst, I. J. G. A. J. Van Der. (2004). Supply Chain Management : theory and practices. The Emerging Science of Chains and Networks: Bridging Theory and Practice, June, 1–19.
Wandita, D. T. (2020). Pengaruh Cukai Rokok Terhadap Konsumsi Rokok Serta Faktor-Faktor Yang Mempengaruhi Konsumsi Rokok. Jurnal Pendidikan Ekonomi, 14(1), 159–165. https://doi.org/10.19184/jpe.v14i1.16659
Yatim, P. (2017). CSR in a controversial industry: The case of Malaysian oil palm companies. International Journal of Sustainable Society, 9(4), 327–345. https://doi.org/10.1504/IJSSOC.2017.090521
Yoga, I. K. D. P., Sunaryo, & Wardani, Y. K. (2018). Implementasi Konsep Creating Shared Value (CSV) sebagai Program Corporate Social Responsibility (CSR) dalam Peningkatan Kesejahteraan Stakeholder (Studi pada PT. Nestle Indonesia Panjang Factory). Pactum Law Journal, 1(3), 258–271.
Website
Abdi, A. P. (2019, March 25). Sukar Meratifikasi FCTC, Indonesia Dinilai Masih Pro-Industri. Tirto.id. https://tirto.id/sukar-meratifikasi-fctc-indonesia-dinilai-masih-pro-industri-dkcj
Abdurakhman, H. (2019, September 9). Tanggung Jawab Sosial Industri Rokok. detikNews. https://news.detik.com/kolom/d-4698445/tanggung-jawab-sosial-industri-rokok
Hayati, I. (2019, January 29). KADIN: Tidak Ada CSR Industri Rokok. Tempo.co. https://nasional.tempo.co/read/1170089/kadin-tidak-ada-csr-industri-rokok
Himawan, A. (2016, June 14). Ini Lima Alasan Petani Tembakau Tolak Aksesi FCTC. Suara.com. https://www.suara.com/bisnis/2016/06/14/160429/ini-lima-alasan-petani-tembakau-tolak-aksesi-fctc?page=all
Komnas HAM. (2020, February 4). Penuhi Hak Anak, Komnas HAM Dorong Pemerintah Ratifikasi FCTC. Komnas HAM. https://www.komnasham.go.id/index.php/news/2020/2/4/1320/penuhi-hak-anak-komnas-ham-dorong-pemerintah-ratifikasi-fctc.html
Liputan6.com. (2020, October 26). Lindungi IHT dan Petani Tembakau, Pemerintah Diminta Tolak FCTC. Liputan 6. https://www.liputan6.com/bisnis/read/4392734/lindungi-iht-dan-petani-tembakau-pemerintah-diminta-tolak-fctc
Lokadata. (2020). Kontribusi UMKM terhadap PDB 2010-2020*. Beritagar. https://lokadata.beritagar.id/chart/preview/kontribusi-umkm-terhadap-pdb-2010-2020-1586251312
Media Indonesia. (2021, September 9). Soal Pengendalian Tembakau, Indonesia Tidak Perlu Ratifikasi Konvensi FCTC. Media Indonesia. https://mediaindonesia.com/ekonomi/431646/soal-pengendalian-tembakau-indonesia-tidak-perlu-ratifikasi-konvensi-fctc
Merdeka. (2021, June 2). Kontribusi UMKM Toko Kelontong SRC Indonesia Capai Rp5,7 T per Tahun. Merdeka.com. https://www.merdeka.com/uang/kontribusi-umkm-toko-kelontong-src-indonesia-capai-rp57-t-per-tahun.html
Pemerintah Republik Indonesia. (2012). Peraturan Pemerintah Republik Indonesia tentang Pengamanan Bahan yang Mengandung Zat Adiktif berupa Produk Tembakau bagi Kesehatan. https://peraturan.bpk.go.id/Home/Details/5324/pp-no-109-tahun-2012#:~:text=PP%20No.%20109%20Tahun%202012,Bagi%20Kesehatan%20%5BJDIH%20BPK%20RI%5D
Pemerintah Republik Indonesia. (2016). Undang-undang No 40 Tahun 2007 tentang Perseroan Terbatas. https://www.ojk.go.id/sustainable-finance/id/peraturan/undang-undang/Pages/Undang-Undang-No.-40-tahun-2007-tentang-Perseroan-Terbatas.aspx
Prastuti, C. D. (2018, September 16). Konferensi APACT ke-12 Dorong Indonesia Ratifikasi FCTC. KBR. https://kbr.id/nasional/09-2018/konferensi_apact_ke_12_dorong_indonesia_ratifikasi_fctc/97316.html
The Union. (2016, June 24). Indonesia Urged to Ratify The WHO FCTC as 30 Percent of Children Start Smoking Before The Age of 10. The Union. https://theunion.org/news/indonesia-urged-to-ratify-the-who-fctc-as-30-percent-of-children-start-smoking-before-the-age-of-ten
World Health Organization. (2003). WHO Framework Convention on Tobacco Control. WHO Framework Convention on Tobacco Control. http://apps.who.int/iris/bitstream/handle/10665/42811/9241591013.pdf?sequence=1
World Health Organization. (2018). Prevalence of current tobacco use (% of adults). The World Bank. https://data.worldbank.org/indicator/SH.PRV.SMOK?locations=ID
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Shafira Mourina Yasmine & Vandy Yoga Swara
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors who publish with this journal agree to the following terms:
(1) The Author retains copyright in the Work, where the term “Work” shall include all digital objects that may result in subsequent electronic publication or distribution.(2) Upon acceptance of the Work, the author shall grant to the Publisher the right of first publication of the Work.
(3) The Author shall grant to the Publisher and its agents the nonexclusive perpetual right and license to publish, archive, and make accessible the Work in whole or in part in all forms of media now or hereafter known under a Attribution-Non Commercial 4.0 International (CC BY-NC 4.0) or its equivalent, which, for the avoidance of doubt, allows others to copy, distribute, and transmit the Work under the following conditions.
(4) The Author represents and warrants that:
- the Work is the Author’s original work;
- the Author has not transferred, and will not transfer, exclusive rights in the Work to any third party;
- the Work is not pending review or under consideration by another publisher;
- the Work has not previously been published;
- the Work contains no misrepresentation or infringement of the Work or property of other authors or third parties; and
- the Work contains no libel, invasion of privacy, or other unlawful matter.
Attribution—other users must attribute the Work in the manner specified by the author as indicated on the journal Web site.
