The purpose of this paper is threefold: how companies perceive corporate social responsibility (CSR) and public relations (PR); how companies perceive the interconnection between these functions; and what factors contributing to their perceptions.
An interpretive qualitative study was employed, where semi-structured interviews with 34 members of PR and CSR departments and three top executives of three big mining (state-owned, private Indonesian, and multinational) companies in Indonesia were carried out. Archival data (e.g. newsletters, websites, and annual reports) were also utilized.
CSR and PR are perceived to be community relationship functions to gain and maintain organizational legitimacy from the communities and shareholders. Three factors shaping these functions: the social and political changes in Indonesia; the communities’ collective culture; and the nature of mining industry.
The current study focused on how companies interpret and enact their interpretations of their organizational environment. This study suggests further research into how the community and other stakeholders interpret the company’s activities and environment. This study also suggests further study on another type of industry.
The present study provides another approach to understanding how CSR and PR are constructed and enacted in an organization as well as to understanding the company’s justification in enacting particular CSR and PR functions. This study maintains the need to consider local values while keeping the global standard.
