Evaluation of Corporate Social Responsibility programs for local communities around mining companies in Kalimantan, Indonesia: environmental, economic, and social perspectives
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Published:
Apr 30, 2022
Keywords:
CSR, Mining Company, Environmental, Economic, Social
Main Article Content
Abstract
The purpose of this study is to evaluate Corporate Social Responsibility (CSR) programs for local communities around mining companies in Kalimantan, Indonesia, based on environmental, economic, and social perspectives. We create evaluation criteria consisting of; six on the environmental perspective, three on the economic perspective, and two on the social perspective. CSR reports are collected from the company website. Each company was given a score based on whether these evaluation criteria were present (1) or absent (0). The evaluation scores of the CSR mining companies programs’ in Kalimantan, Indonesia are high in considering cleaner production, waste reduction, material flow management, and recycling, committed to managing energy and water, developing infrastructures surrounding mining companies, has good corporate ethics, and encourages employees to volunteer for social causes and provides incentives for these activities; medium in committed to following all applicable laws and policies concerning environmental standards and policies, committed to conserving biodiversity, committed to managing sound and vibration from mining activities as well as protecting the air quality around the mining area, and enhancing self-employment options for local communities; low in taking long-term factors into accounts, such as global climate change and other environmental threats, and providing jobs opportunities for local communities. From the evaluations above, access to information, public participation, and transparency in discussing areas of corporate-community issues are all things that mining companies must improve. If there is a lack of congruence between aim, activity, and effect, civil society organizations should frequently criticize mining companies' CSR operations.
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How to Cite
Zamroni, A., Putri, W. E. C., & Sagala, S. T. (2022). Evaluation of Corporate Social Responsibility programs for local communities around mining companies in Kalimantan, Indonesia: environmental, economic, and social perspectives. Sustinere: Journal of Environment and Sustainability, 6(1), 66–78. https://doi.org/10.22515/sustinerejes.v6i1.195
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Rela, I. Z., Awang, A. H., Ramli, Z., Md Sum, S., & Meisanti, M. (2020). Effects of environmental corporate social responsibility on environmental wellâ€being perception and the mediation role of community resilience. Corporate Social Responsibility and Environmental Management, 27(5), 2176-2187. https://doi.org/10.1002/csr.1956
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Virakul, B., Koonmee, K., & McLean, G. N. (2009). CSR activities in awardâ€winning Thai companies. Social responsibility journal. https://doi.org/10.1108/17471110910964478
Adimitra Baratama Nusantara. (2021). Jenis Usaha. http://www.tobabara.com/id/sekilas-perusahaan/informasi-perusahaan/anak-perusahaan/dprofile-pt-adimitra-baratama-nusantara/. Accessed 23 June 2021.
Agus, A. (2020). Practicing of Corporate Social Responsibility for Community Empowerment: A Case of a Mining Company in Indonesia. Randwick International of Social Science Journal, 1(3), 608-618. https://doi.org/10.47175/rissj.v1i3.115
Aldila, M. R., & Santiago, F. (2018, September). CSR Implementation Concept of Mining Company in Indonesia According to Applicable Law and Theory. In 2018 International Conference on Energy and Mining Law (ICEML 2018) (pp. 197-200). Atlantis Press.
Andrews, N. (2016). Challenges of corporate social responsibility (CSR) in domestic settings: An exploration of mining regulation vis-Ã -vis CSR in Ghana. Resources Policy, 47, 9-17. https://doi.org/10.1016/j.resourpol.2015.11.001
Arutmin. (2020). Business Info. http://www.arutmin.com/en/business-info/operation. Accessed 23 June 2021.
Baramulti Suksessarana. (2012). Company Overview. http://www.bssr.co.id/index.php/about-bssr/company-overview. Accessed 23 June 2021.
Baughn, C. C., Bodie, N. L., & McIntosh, J. C. (2007). Corporate social and environmental responsibility in Asian countries and other geographical regions. Corporate social responsibility and environmental management, 14(4), 189-205. https://doi.org/10.1002/csr.160
Bayan Resources. (2019). Bayan Overview. https://www.bayan.com.sg/bayan-overview. Accessed 23 june 2021.
Berau Coal. (2021). Operations. https://www.beraucoalenergy.co.id/our-profile/operation/. Accessed 23 June 2021.
Carroll, A. B. (2015). Corporate social responsibility: The centerpiece of competing and complementary frameworks. Organizational dynamics, 44(2), 87-96. https://doi.org/10.1016/j.orgdyn.2015.02.002
Crane, A., Matten, D., & Spence, L. J. (2013). Corporate social responsibility in a global context. Chapter in: Crane, A., Matten, D., and Spence, LJ,'Corporate Social Responsibility: Readings and Cases in a Global Context, 2, 3-26. https://ssrn.com/abstract=2322817
Dulkiah, M., Sulastri, L. I. L. I. S., & Irwandi, A. L. S. (2019). Corporate Social Responsibility (Csr) And Social Conflict Potencies In Mining Areas Community: Empirical Evidences From Indonesia. Journal Of Critical Reviews, 6(4), 52-56. http://dx.doi.org/10.22159/jcr.06.04.10
FARM, P. H. W., NEAR, A. I., & MOORREESBURG, W. C. (2017). Environmental impact assessment.
Halevi, G., Moed, H., & Bar-Ilan, J. (2017). Suitability of Google Scholar as a source of scientific information and as a source of data for scientific evaluation—Review of the literature. Journal of informetrics, 11(3), 823-834. https://doi.org/10.1016/j.joi.2017.06.005
Handayati, P., Soetjipto, B. E., & Alhaleh, S. E. A. (2018). Comparative Study Level of CSR Compliance in the Cement Industry Sector, Mining Sector and Banking Sector in Indonesia. KnE Social Sciences. https://doi.org/10.18502/kss.v3i10.3356
Hapsoro, D., & Fadhilla, A. F. (2017). Relationship analysis of corporate governance, corporate social responsibility disclosure and economic consequences: Empirical study of Indonesia capital market. The South East Asian Journal of Management.
Jenkins, H., & Obara, L. (2006, September). Corporate Social Responsibility (CSR) in the mining industry–the risk of community dependency. In Corporate Responsibility Research Conference, Dublin (pp. 4-5).
Justyna, S., & Sebastian, S. (2016). Evaluation and reporting of CSR in SME sector. Management, 20(1), 96-110. https://doi.org/10.1515/manment-2015-0027
Kao, T. Y., Chen, J. C., Wu, J. T. B., & Yang, M. H. (2016). Poverty reduction through empowerment for sustainable development: A proactive strategy of corporate social responsibility. Corporate Social Responsibility and Environmental Management, 23(3), 140-149. https://doi.org/10.1002/csr.1365
Kaltim Prima Coal. (2021). Sekilas Tentang Kami. https://kpc.co.id/id/sekilas-tentang-kami/. Accessed 23 June 2021.
Kideco. (2019). Kideco Company Profile. https://www.kideco.co.id/wp-content/uploads/2019/10/KIDECO-COMPANY-PROFILE-2019.pdf. Accessed 23 June 2021.
Lu, J., Liang, M., Zhang, C., Rong, D., Guan, H., Mazeikaite, K., & Streimikis, J. (2021). Assessment of corporate social responsibility by addressing sustainable development goals. Corporate Social Responsibility and Environmental Management, 28(2), 686-703. https://doi.org/10.1002/csr.2081
MartÃn-MartÃn, A., Costas, R., van Leeuwen, T., & López-Cózar, E. D. (2018). Evidence of open access of scientific publications in Google Scholar: A large-scale analysis. Journal of Informetrics, 12(3), 819-841. https://doi.org/10.1016/j.joi.2018.06.012
Mouraâ€Leite, R. C., & Padgett, R. C. (2011). Historical background of corporate social responsibility. Social Responsibility Journal. https://doi.org/10.1108/1747111111117511
Multi Harapan Utama. (2019). Profil Perusahaan. https://mhucoal.co.id/id/profil/. Accessed 23 June 2021.
Mutti, D., Yakovleva, N., Vazquez-Brust, D., & Di Marco, M. H. (2012). Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina. Resources Policy, 37(2), 212-222. https://doi.org/10.1016/j.resourpol.2011.05.001
NUSWANTARA, D. A., & PRAMESTI, D. A. (2020). Corporate social responsibility regulation in the Indonesian mining companies. The Journal of Asian Finance, Economics, and Business, 7(10), 161-169. https://doi.org/10.13106/jafeb.2020.vol7.no10.161
Oliveira, R., Zanella, A., & Camanho, A. S. (2019). The assessment of corporate social responsibility: The construction of an industry ranking and identification of potential for improvement. European Journal of Operational Research, 278(2), 498-513. https://doi.org/10.1016/j.ejor.2018.11.042
Pesona Khatulistiwa Nusantara. (2019). Profil Perushaaan. https://pkncoal.com/profil_perusahaan.php. Accessed 23 June 2021.
Prayogo, D. (2013). Measuring corporate social responsibility for local communities in mining, oil and gas industries: The case of Indonesia. Journal of economics and sustainable development, 4(1), 59-68.
Purbawangsa, I. B. A., Solimun, S., Fernandes, A. A. R., & Rahayu, S. M. (2019). Corporate governance, corporate profitability toward corporate social responsibility disclosure and corporate value (comparative study in Indonesia, China and India stock exchange in 2013-2016). Social Responsibility Journal. https://doi.org/10.1108/SRJ-08-2017-0160
Rachmawati, Y., & Zamroni, A. (2020). How Indonesian Governments Care for Local People’s Education in the Mining Area: Experiences from other Countries. Psychology and Education Journal, 57(9), 5924-5934. https://doi.org/10.17762/pae.v57i9.2550
Raufflet, E., Cruz, L. B., & Bres, L. (2014). An assessment of corporate social responsibility practices in the mining and oil and gas industries. Journal of Cleaner production, 84, 256-270. https://doi.org/10.1016/j.jclepro.2014.01.077
Rela, I. Z., Awang, A. H., Ramli, Z., Md Sum, S., & Meisanti, M. (2020). Effects of environmental corporate social responsibility on environmental wellâ€being perception and the mediation role of community resilience. Corporate Social Responsibility and Environmental Management, 27(5), 2176-2187. https://doi.org/10.1002/csr.1956
Suprapto, N., Zamroni, A., & Yudianto, E. A. (2017). One Decade of the “LUSI†Mud Volcano: Physical, Chemical, and Geological Dimensions. CHEMISTRY, 26(4), 615-629.
Virakul, B., Koonmee, K., & McLean, G. N. (2009). CSR activities in awardâ€winning Thai companies. Social responsibility journal. https://doi.org/10.1108/17471110910964478