**5. Conclusion**

To sum up, in Indonesian society the institutional logic of CSR practice is more influenced by cognitive factors than by regulatory factors. Although Indonesia has sufficiently complex regulations to encourage corporate responsibility that is supported by community character with cognitive values of high-power distance determines CSR in Indonesia. Problems related to overlapping policies, bureaucracy, and corruption make ineffective regulations encourage businesses to have social responsibility.

Indonesian society, which is collective and also tends to be feminine, contribute significantly as a driver of CSR practices. This research shows that the company interprets two cultural features as their form and endeavor to attach themselves to the surrounding community where they operate. This condition cannot only be explained as an effort to gain legitimacy, but rather to build harmony in society. However, the Indonesian people who are collective and tend to have low uncertainty avoidance (avoiding inconvenience and conflict) make CSR implementation more challenging.

This study also sees that the role of religion and the normative values of the Pancasila ideology also provides its color in the practice of CSR in Indonesia. Such principles are yet another challenge in how CSR can be expressed in Indonesian society.

*The Institutional and Cultural Challenges of Corporate Social Responsibility: Case Study… DOI: http://dx.doi.org/10.5772/intechopen.94478*
