SOCIAL RETURN ON INVESTMENT (SROI) ANALYSIS OF SEWING GROUP CSR IN PT PLN INDONESIA POWER PLTGU CILEGON OMU

• Main Author: Yana, Crisda
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/75582
• Institution: Institut Teknologi Bandung

Global company activities place an increasing emphasis on issues like responsibility and sustainability. One of the most prisms used by existing businesses in increasingly responsible and sustainable behavior is through corporate social responsibility (CSR). PT PLN Indonesia Power PLTGU Cilegon OMU is a sub holding from an Indonesian state-owned company that committed to responsible and sustainable behavior through CSR. The old CSR program in Margasari village, as the first ring area of the company needs a replacement because it has come to its exit time. SWOT analysis is conducted by taking into account the community existing condition based on the social mapping document 2022. The analysis shows that there is a potential to carry out a new sewing group named Pujasari as the new CSR Program in Margasari village. However, since a CSR program is a social investment, the company must be confident in the program future return for the community. The purpose of this study is to know the program economic feasibility, social return on investment (SROI) value, variables that may affect SROI achievement and program contribution toward SDGs achievement. The study will integrate the financial analysis technique using capital budgeting method and triple bottom line concept in SROI calculation. Sensitivity analysis will be used to determine the important variable toward SROI achievement. The study shows that the calculation using the triple bottom line concept (considering economic, social and environment benefit) in 5 years project terms, result in the NPV of IDR 1.98 bio, IRR of 109% with 13.349% WACC. The SROI value of the program is 20.39 which indicates that every IDR 1 invested by the company on this program, social benefit worth IDR 20.39 will be generated. Sensitivity analysis shows that WACC, selling price of rag, working productivity and price of rag raw material is sequentially the most sensitive variable in changing SROI value of the project. Furthermore, the program shows contribution to the achievement number 1, 5, 8 12 and 13 of the SDGs.