SUSTAINABILITY LEADERSHIP OF CSR PROGRAM PERFORMANCE AS SUSTAINABLE BUSINESS STRATEGY OF PT KALTIM PRIMA COAL

• Main Author: Gerda Pessireron, Louise
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/62551
• Institution: Institut Teknologi Bandung

CSR is currently a hot topic in extractive industries like coal mining because its execution produces varied perspectives among stakeholders. The issue is how to keep the business going when mining stakeholders have wrong impressions. Opposing viewpoints include viewing CSR as a short-term social investment rather than a longterm social investment. Meanwhile, external stakeholders still regard it as cash only. Although CSR integrates the business world with the performance of its social environment, implementation becomes a challenge by a lack of understanding both within and externally. Questions like whether CSR programs have linkage to corporate sustainability leadership may arise. Furthermore, to assess how the performance of CSR program management can affect the smooth functioning of the business, then governance is critical in its implementation. Although certification is not required, the Company where the research was conducted used ISO 26000 guidelines. This study used the ISO 26000 gap analysis approach, and its disclosures show excellent results in the areas of CSR principles, organizational governance, and community engagement and development with scores 87.67 percent, 80.58 percent, and 83.23 percent, respectively. Stakeholder participation in each stakeholder project cycle is an integral part of CSR implementation, including when the Company submits a sustainability report using GRI Standards (Global Reporting Initiatives). Meanwhile, the author uses an SROI (Social Return on Investment) analysis approach to monetize the intangible value and compare the value of program benefits to the investment value to ensure the effectiveness of the CSR program. An effective CSR program can bring about change in society as an added value for both parties, especially when collaborating and involving program stakeholders The leadership steps in fulfilling the effectiveness of CSR programs and involving stakeholders have implemented the CSR strategy map that already exists in the Balanced Score Card of the CSR implementing division. Companies that develop partnerships and create shared value with stakeholders in implementing CSR initiatives prove implementing business strategies to gain long-term sustainable competitive advantage.