THE MOTIVE OF CSR PRACTICES IN INDONESIA: MAQASID AL-SHARIA REVIEW

This research examines the underlying motive of CSR implementation and design, according to maqasid al-sharia. A qualitative descriptive approach was used to obtain primary data through interviews with 5 CSR informants. Secondary data was collected from the public company’s annual report on the IDX in 2019. Data was sampled and examined using purposive and content analysis technique. The results showed that there are 2 motives in CSR, specifically social and economic. Furthermore, the economic motive is more dominant and expects provision of monetary feedback. Consequently, CSR becomes less effective and most programs do not follow the real stakeholders’ needs. The dignity of CSR needs to be regained by implementing maqasid al-sharia dimensions. There are 2 approaches used to implement CSR, including a support system that utilizes pressure. The transcendental approach initiates corporate actors through religious values from maqasid al-sharia, making the implementation more humanist and stakeholder-oriented. Keyword: Social motive, economic motive, maqasid alsharia, system support, transcendental support. Qudus International Journal of Islamic Studies (QIJIS) Volume 8, Number 2, 2020 DOI : 10.21043/qijis.v8i2.8856


A. Introduction
The CSR implementation is not effective in solving the community's problems, especially sustainability and development issues (Duska, Duska, & Ragatz, 2011;Hadi & Baihaqi, 2020;Hadi & Khanifah, 2017). According to Hadi (2018), these effects are caused by the motive shift from a charity based transcendental value to a corporate strategy that prioritizes economic value. The current CSR focuses more on building an image, legitimacy, litigation, and promotion (Hudaefi & Noordin, 2019;Ridho, 2016). Consequently, programs offered by corporations do not match the assisted communities' real needs.
The deviation between the CSR programs and community needs is wider when the economic rationale is corporative.
Even though the CSR program increasingly broad in scope, the community has not experienced its effectiveness. CSR practices have changed to business activities and new company strategies. Many companies implement CSR in a limited way, with objectives directed at improving internal stakeholders or employees' quality. CSR economic content became new material in constructing the company's strategy. Therefore, companies succeed in implementation, promotion objectives and legitimacy. The corporation-based CSR implementation has been the dominant approach for the last 10 years.
These studies concluded that there was inconsistency in the results or effectiveness of disclosure in social responsibility. The motive of operation determines the type, pattern, and company's seriousness in implementing CSR. The inclusion of these dimensions makes the designed CSR program more humanist, stakeholder orientation, and balanced.

Social Contract Theory
Company existence in a community is directly and indirectly bound by a set of values (Hadi, 2018). According to Wijaya (2016), the community value system is upheld by rights and is the basis for orderly agreement relationships or social contracts. Hobbes  and Locke (1632Locke ( -1704 stated that the nature of the social environment is political in which actors have a responsibility to obey established laws (Baier, 1988;Distefano, 1991;Gauthier, 1990). According to Locke (1632Locke ( -1704, the social contract is needed to protect Nor Hadi and Jadzil Baihaqi other parties' ownership and rights because everyone has their own desires. Furthermore, social contracts are also needed in contemporary management since companies involve many stakeholders (Hadi, 2017;Mouritz, 2010;Nbete, 2012;Rawls, 1999).
A company has an obligation to maintain congruence between its wishes and expectations to exist in a community (O'Donovan, 2002;Ika Era Pratiwi, 2018). Congruence is achieved when the company's operations consistently adhere to a system of values, norms, rules, and social agreements (Adams & Kuasirikun, 2000;Belal, 2008;Buniamin, 2010;Gray, 2002;Hadi, 2018;O 'Donovan, 2002). Therefore, the social contract is a Pareto optimal potential for conflict and equality without persecution against. Also, people who lived in Medina had the freedom to remain safe unless they sinned. Article 37 which stated that people were allowed to give good advice and embrace deeds without sin. The Medina charter determination provides answers to social situations such as diversity in religious communities and urban beliefs (Fahruddin, 2013;Fauzi, 2005;Patamatta & Jumardi, 2020).
Conclusively, the Medina Charter is a social Islamic contract based on Al-Qur'an noble values. This is explained in the Qur'an, surah al-Maidah: O believers! Stand firm for Allah and bear true testimony. Do not let the hatred of a people lead you to injustice. Be just! That is closer to righteousness. And be mindful of Allah. Surely Allah is All-Aware of what you do (QS: al-Madinah: 8).

Social Responsibility
Companies are community groups which directly and indirectly impact the environment and society. Carroll & Buchholtz (2011) and Deegan (2002) stated that companies have a responsibility to shareholders, society and the environment.   (Fadun, 2014) Economic responsibility refers to improving shareholders by increasing profit per share, competitiveness, and efficiency (Carroll, 2016). To adhere to legal responsibility, companies Nor Hadi and Jadzil Baihaqi should maintain business stability by complying with applicable regulations, constitution, and laws (De Schutter, 2008;Phillips, Freeman, & Wicks, 2003). Companies must uphold ethical principles, respect values in society, code of conduct, and conventions that apply in society (Carroll, 1991). Philanthropic responsibility is achieved by upholding humanity, empathy, charity, and responding to community problems.
Social responsibility is an important medium in managing a company more humanely by paying attention to the planet and people (Carroll 2016). According to Elkington (1997), social responsibility refers to systematic, proactive, structured, and sustainable realization in socially acceptable and environmentally friendly business operations. The EU Commission (2002) stated that CSR allows companies to integrate social and environmental concern in business operations and interactions. Therefore, the company's operations need to synergize by protecting the social and physical environment. CSR directs corporate management to several orientations, including mandatory and voluntary serious commitment, partial physical and social environmental concern, charity and community development, sustainability, internal and external stakeholders improvement, accountability, disclosure, business ethics, economic growth and value feedback.
The 5 maqasid al-sharia principles have strong coherence with CSR dimensions, including the planet, people, and profit which determine company responsibility (Elkington, 1997).
These objectives can be mutually adopted and integrated to develop a harmonious CSR design based on maqasid al-sharia.
The CSR program implementation sincerity can be shown by corporate intentions and motives based on integrated maqasid al-sharia principles. Consequently, a visionary, sincere, sustainable entity that safeguards the interests of creditors, suppliers, employees, consumers, and the society is created (Carroll, 2016, Carroll & Buchholtz, 2011Alamer et al. 2015;Aksak et al. 2016;Adams, 2002;Hadi, 2018). Maqasid al-sharia serves both individual and social interests. Therefore, CSR needs to integrate maqasid al-sharia principles and develop a more humanist and stakeholder-oriented entity.

C. Method
This research focused on the underlying CSR implementation motives, types, and strategies. The study used a descriptive-analytical approach by examining the business annual report and interviewing 5 purposively sampled CSR informants.
Data was analyzed using the content-based procedure, as shown in Figure 1 Step of Data Analysis Figure 1 shows several data analysis steps, including collection by reading and in-depth examination of the annual report and interviews with informants. Data as checked to determine its relevance before reduction or grouping according to certain characteristics. Furthermore, comparisons and patterns were conducted to find the initial insight, which is validated in the last step.

D. Result
The motives behind the CSR implementation determine the form, pattern, and strategy. Two types were analyzed, including 15 annual company reports from various industries and interviews results from 5 CSR management executives.
The results showed that there had been a shift in CSR implementation motives which determines typology and influences effectiveness levels.

Shift in CSR Implementation Motives
The underlying CSR implementation motives influence form, pattern, strategy and orientation. Therefore, the motive is an internal power of CSR implementation, which encourages construction to certain expected goals. The study results showed that companies understand their operations have a negative impact socially and environmentally. This is natural if companies impose social costs to respond and be empathetic to the society. However, companies continue to pay attention to trade-off costs and benefits, because CSR contains high costs that affect profitability (Hadi. Nor, et al., 2018 The results also show a shift in the CSR implementation pattern triggered by social to economic motive, as shown in see table 1. Several programs focus on internal perspective, including employee welfare, production system improvement to ensure quality and health, green energy, and recycling production waste. The CSR has economic feedback for the corporation. The external oriented programs include SME and natural disaster assistance and community empowerment but are always accompanied by promotional messages, as shown in Table 1. Therefore, the CSR program is less interested in helping solve social problems because there is a deviation from the initial stakeholders. To change these trends, the government needs to strengthen regulations and supervision. Also, there is a need for systemic corporate awareness to create a binding pressure. The social perspective by stimulating religious transcendental values for business people.

System and Transcendental Support
System and transcendental support can be used to achieve stakeholder value alignments in CSR. System support is related to government authority which incorporates awareness and pressure through issuing regulations and monitoring. CSR implementation is managed in a structured and institutionalized manner through foundations and management departments.
Therefore, its implementation is managed in a systematic,

E. Discussion
This study results showed that CSR program form and strategy could not be separated from the underlying motives.
The initial goal of the company was to develop the community and the environment. Also, another intended goal was to taking responsibility for negative impacts reported and have economic feedback. CSR is more humane and the partiality value will be stronger attention is paid to transcendental (Illahiah) values based on maqhoshid shari'ah dimensions.
This value provides more productive CSR because it is more stakeholder-oriented. The maqhosid shari'ah values include protecting religion, the soul, mind, property and offspring (Hafidz, 2007;Farook, 2007;Al-Ubaidi, 1992;At-Thohir, 2001;Dusuki & Abdullah, 2007) The company pays attention to the trade cost and benefit principle for all decisions. This attitude brings CSR out of its original spirit, which was charity, responsiveness attitude on the environment and economic values. CSR was more than Allah and mercy upon the universe (QS. Al-Anbyaa: 107). Table   3 shows several verses of the Qur'an and Hadith that can be referenced to develop maqhisid shari'ah integrated CSR. Applicable verses and hadiths are translated into fiqh or operational practice procedures. Al-Quran requires translation to provide maslahan or benefits values that take into account contextuality. Therefore, maqasid al-sharia helps translate into various actus, including the Islamic CSR, as shown in Figure 3.   At- Thohir, 2001;Dusuki & Abdullah, 2007;Zagibah, 1996;Wahibur Rockman, 2016). This maqasid al-sharia mindset could be the reference for Islamic CSR research development with concepts in Belkoui & Karpik (1989); Deegan (2002);Caroll, 2001Caroll, , 2011Caroll, , 2016.
This study examines the motives behind CSR implementation and the implication of shifts on effectiveness.

F. Conclusion
The motives behind CSR implementation determine its form and orientation, which cause effectiveness issue. This study focused on 2 CSR implementation motives, specifically social and economic. There has been a shift from social to economic motives directing program more to internal stakeholders who can provide valuable feedback. This condition has cost CSR its original charity-based values. Placing Nor Hadi and Jadzil Baihaqi the CSR motive to the essence of origin and constructing CSR principles and dimensions is essential. System support and transcendental support are relevant in creating a principles program. The support system develops a structured authority as binding pressure, while transcendental incorporates maqasid al-sharia dimensions. These dimensions give value to CSR, such as philosophy, principles, motives, and indicators.
Shifting to maqasid al-sharia value and support system will solve effectiveness problems because of binding pressure and religious power. Transcendental values provide therapy and direct CSR intentions aimed at gaining ukhrowi or the afterlife. CSR programs will be designed to match community needs. The maqasid al-sharia dimension will teach company management aspects of balance, trust, usefulness, stakeholder protection and corporate awareness.
Research limitations were related to CSR dimensions development in maqasid al-sharia perspective, which is contextual to stakeholder conditions. Also, the model design was not empirically validated. Therefore, further research needs to develop and factorial test a contextual dimension of maqasid al-sharia. Moreover, the research could design an empirical model through a developmental approach.