DEVELOPING THE EFFECTIVE CSR PROGRAMS TO EXTRACTIVE RESOURCES INDUSTRY IN INDONESIA: A CASE STUDY OF FREEPORT, INDIKA ENERGY, MEDCO ENERGY, PERTAMINA, AND VALE INDONESIA

• Main Author: Dian Maharani, Rizkya
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/42532
• Institution: Institut Teknologi Bandung

Corporate Social Responsibility (CSR) has been receiving wide attention as this practice implies the efforts from corporations and industries to give contribution to society. While the practice of CSR is expected to promote economic, social, and development, however, the CSR practice in extractive industries, especially in developing countries, is often inviting debates from the stakeholders. The debates are mostly related to the negative image of the extractive resources industries in harming the environment and exploiting the local people. From the corporation sides, the debates are related to what kinds of CSR needed by the community and how much money to be spent by corporations for their CSR activities. This final project explores the practice of Corporate Social Responsibility (CSR) in extractive industries in Indonesia, where extractive resources industries have been the backbone of the economy for years. It starts with some reviews on extractive industries and the operations of extractive industries in Indonesia including major companies operating in the industries. It then explores the best and worst experience in doing the CSR in the extractive industries, and finally provides the main challenges that the extractive resources industries are facing and strategies to overcome those challenges. This article concludes that CSR practices in extractive industries are sometimes performed to minimize the negative image of the industries. Corporations performed CSR activities so that they can be perceived as having good business practices by the community. Eventually, the practices of CSR in extractive resources industry are worthwhile to contrive the sustainability for communities, society, and the country.