ENVIRONMENT AND SOCIAL IMPACT MANAGEMENT THROUGH ENVIRONMENTAL CSR PROGRAMS AS THE IMPLEMENTATION OF GOOD BUSINESS ETHIC AT PT KALTIM PRIMA COAL

• Main Author: Setiawan, Wawan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62471
• Institution: Institut Teknologi Bandung

PT Kaltim Prima Coal (KPC), as one of the largest coal mining companies in the world, is required to responsibly manage potential impacts of environment and social from mining operations by implementing Good Mining Practices as a part of good business ethics. Managing mining environment is inseparable from business performance of KPC and therefore has to be in sustainable commitment of the company. In this research, there were three negative impacts; mine drainage management and utilization, post mining area management through reclamation, and urban waste management as a consequence of increasing population. These impacts were in responsible run not only as a base of regulation compliance, but also as a further base of giving added value to enhance program beneficiaries’ engagement. The programs were “KPC Care for Water”, “KPC Care for Waste”, and “KPC Care for Seeds”. This study aims to see how the three CSR programs have a positive impact on providing benefits, added value and accepted by the beneficiaries. In addition, this research will reveal how the implementation of KPC's CSR program based on the environment is the embodiment of good business ethics. The measures of positive impacts were utilizing Social Return on Investment, making use of program effectiveness toward sustainable life quality improvement as the key indicator. Community Satisfaction Index was also employed to get feedbacks from the beneficiaries along with communit y empowerment’s capacit y improvement. ISO 26000 analysis gap was then used as a foundation to build cooperate image and to measure alignment toward CSR principle, organizational governance, and environment as well as involvement issues of community development. Also, in this research, analysis to continuous policy development of PT KPC was done through “Creat ing Shared Value”, which emphasized on beyond social issues, from merely business profit. The business chain between KPC and community was created to get to CSR program innovation and sustainability. And of the three cases, positive impacts have been relished by the community. KPC has created its image by implementing good business ethics through sustainable development policy as in CSR principles of accountability, transparency, ethical behaviours, and high regard stakeholder, law enforcement, norm and human rights respect. In addition, KPC has implemented good corporate governance, especially through environment based- decision making and community development and involvement.