Sustainability of Corporate Social Responsibility Programs: Design, Governance, and Actor Convergence in Developing Countries' Context

Studies on Corporate Social Responsibility (CSR) have long focused on sustainability at the corporate level, but has neglected the sustainability of CSR programs themselves. Many programs have failed to produce long-term social and environmental impacts. This issue is explored in this study using stakeholder theory. Given the dynamic nature of CSR programs in developing countries, which operate under institutional constraints and limited state capacity, program sustainability is not easy to achieve. Existing research often imposes a binary distinction (“successful” versus “failed”) regarding the sustainability of CSR programs implemented by companies in developing countries. This study rejects this long-held view and proposes that sustainability is a relational process that continuously evolves through adaptive interactions between a company’s internal and external factors. Applying a multiple-case study method, this study analyzes two Indonesian companies: PT Semen Indonesia Tuban Plant and PT Badak LNG. Findings confirm that sustainability is never limited to a binary classification, but rather constitutes a spectrum encompassing four conditions: fully sustainable and thriving, sustainable and growing, partially sustainable, and terminated. This study develops an interaction model CSR program sustainability, explaining that the impact of internal factors—including project design, organizational governance, and management capacity—can only be strengthened through their interaction with external factors such as stakeholder relationships and policy changes. Key events serve as pivotal points shaping a program’s development, while communication and coordination link all relevant elements. Ultimately, this study enriches classical stakeholder theory and highlights the role of companies in developing countries as subjects of governance.