Redefining the Concept of Local Wisdom-Based CSR and Its Practice

Abstract

Local wisdom is very important for corporate social responsibility (CSR) activities which benefit local communities, especially in the case of companies in Indonesia; however, these companies have not yet understood the concept and examples of local wisdom-based CSR activities. This research aims to formulate the concept of such CSR and its practice in Indonesia. To fulfil its objective, the study makes a systematic review of 74 local wisdom-based, CSR articles with an Indonesian background based on the PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) statement. Google Scholar, ScienceDirect, Scopus, and Emerald Insight were used as the main databases to find related articles. In accordance with the concept of local wisdom-based CSR, the research focuses on community empowerment activities and how local wisdom is a key part of these. Local wisdom-based CSR activities are categorised into three types: CSR based on local wisdom, CSR that considers local wisdom, and CSR that uses local wisdom. The findings will aid companies in planning and implementing such activities. Through the research gaps identified, the study will also facilitate future researchers in conducting local wisdom-based CSR research.