Decisions responsibility of the business to the parties concerned,

Decisions making to implement CSR
activities are not just subjective opinions of business owners, but there must
also be harmony between the views of shareholders and stakeholders. Stakeholder
theory (Freeman, 1984) proposed the responsibility of the business to the
parties concerned, i.e. any group or individual who can affect or be affected
by the organization’s goals (Kim, 2015). Freeman asserted that corporate
decision-making should consider not only shareholders but also other
stakeholders such as employees, suppliers, customers and the communities
affected by the actions of that company (Kang, 2016). Stakeholder theory
implied that CSR activities should include all the requirements of the
legitimate stakeholders to enhance the reputation and value of a company (Kang,
2016). That is, CSR, by combining all the benefits of legitimate stakeholders,
can contribute to maximizing the wealth of shareholders (Kang, 2016). According
to the research by author Caroline Flammer, based on the notion that CSR is a
resource for businesses, shareholders will tend to react positively to the
announcement of the initiative shown with social responsibility and
environmental friendliness, and negative for the disclosure of harmful behavior
to the environment (Flammer, 2013). Besides, when analyzing the views of
stakeholders, particularly here is the staff, we will get some ideas about CSR
activities as follows: First, companies do not necessarily develop projects
consistent with the business model of their current. Employees always want to
encourage diversity and creativity when producing corporate CSR activities. For
example, a hospital is not required to carry out health-related CSR activities
simply just because it is their core business. They can also organize CSR
activities related to education, arts, and culture. Second, emphasized the need
for a “CSR Department” at the business to be able to operate these
activities in a professional manner. Third, implementing CSR activities
requires a certain budget, this should be carefully calculated and considered
before commencement, and must be consistent with the business situation in each
stage of the company (Ugur, 2015).