Articles

Community Satisfaction of Community Development Program: A Case Study of the MENJAGA NUSANTARA Program in West Bangka

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The MENJAGA NUSANTARA (Mentok Berjaya dan Bahagia Melalui Inklusifitas Berkelanjutan dan Sejahtera) program is one of the Corporate Social Responsibility (CSR) initiatives implemented by PT Timah Tbk Division of Processing and Smelting, Mentok, focusing on community empowerment in Belo Laut Village, Air Putih Village, Tanjung Subdistrict, and Sungai Baru Subdistrict. To assess its effectiveness, a Community Satisfaction Index (CSI) survey was conducted involving 75 program recipients. This study aims to measure the level of community satisfaction with the program’s implementation and to identify aspects that require further strengthening for future development. A descriptive quantitative approach was employed using a Likert-scale questionnaire (1–4), covering four key aspects: program implementation, program management, program distribution, and service quality. The data were analyzed by calculating the CSI score for each aspect, which was then converted into a 100-point index. The results indicate that the overall CSI score reached 3.425 with a converted index of 85.625, classified as very satisfactory. By aspect, program implementation scored 3.367 (84.167), program management 3.495 (87.375), program distribution 3.413 (85.333), and service quality 3.425 (85.625), all within the very satisfactory category. Recipients highlighted the relevance, benefits, sustainability, participation, synergy, facilitator performance, accuracy of targeting, and responsiveness as strong points of the program. In conclusion, the MENJAGA NUSANTARA program is considered successful in enhancing community capacity and shows strong prospects for sustainability. Recipients expressed their hope for the program’s continuation, complemented by additional training in human resource development, to enable its evolution into an independent and sustainable community-based enterprise.

Strengthening Women’s MSMEs in the Efforts to Restore the National Economy

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The involvement of the State-Owned Enterprises’ Corporate Social Responsibility (CSR) program is urgently needed in an effort to support national economic recovery as carried out by PT Pertamina (Persero) through the Pertamina Small Medium Enterprise Partnership Program (SMEPP) CSR program. The Pertamina Small Medium Enterprise Partnership Program (SMEPP) CSR Program can help Women MSMEs in recovering the national economy, especially during the COVID-19 Pandemic crisis. The formulation of the research problem is how is the implementation of the Womenpreneurs CSR program as an effort to strengthen Women’s MSMEs in the context of national economic recovery during the COVID-19 Pandemic by PT Pertamina (Persero)? The research approach used is descriptive qualitative with case study research methods. The first data collection was through in-depth interviews and focus group discussions (FGD) on the Pertamina Womenpreneurs CSR program. Then secondary data is obtained through the study of documents, news, and related studies.  The SMEPP CSR program partners are given capital, assistance, and invited to exhibit production works. This shows that PT Pertamina contributes to accompanying women in the progress and recovery of the national economy in Indonesia. Nonetheless, the role of women still needs assistance and guidance to continue to be empowered in efforts to recover the national economy. Therefore, through PT Pertamina SMEPP’s CSR program, which collaborates with female MSMEs actors, this is a solution that needs to be emulated by several other companies so that the vision and mission of empowering women in efforts to restore the national economy significantly.

Enhancing Public Relations (PR) as the Focus of Integrated Marketing Communication (IMC) for CRG Indonesia

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This study investigates methods to improve Public Relations (PR) within Integrated Marketing Communication (IMC) for CRG Indonesia, paying attention to the key challenges encountered in media relations, event management, and community engagement/Corporate Social Responsibility (CSR). Through conducting qualitative analysis and interacting with stakeholders, the research has found that there is a requirement for content which can be tailored to specific locations, a more solid sustainability message, and enhanced digital interaction. The findings show that CRG’s current public relations strategies have to be better aligned with local sensitivities and company goals. The recommended enhancements involve establishing more robust media connections, implementing thorough event organization, and integrating corporate social responsibility initiatives to cultivate community confidence. The implementation plan utilizes digital platforms, establishes explicit CSR objectives, and adheres to a comprehensive timeline based on the AISAS (Attention, Interest, Search, Action, Share) model. This strategy ensures effective involvement and extensive understanding among all parties involved. By implementing such strategies, CRG Indonesia may enhance its prominence, convey its dedication to sustainability, and establish a robust public relations structure that aids both short-term and long-term business goals.

Enhancing Community Participation in Corporate Social Responsibility Activities at PT. Prima Bara Nusantara through Improved Decision-Making Process

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Corporate Social Responsibility (CSR) is crucial for companies that have a substantial ecological footprint, such as coal mining in Indonesia. PT. PBN strives to achieve a harmonious combination of responsible behaviors and economic viability. However, attaining this equilibrium necessitates strong community engagement to alleviate negative effects and provide beneficial contributions at the local level. This study focuses on the underexplored issue of poor community participation in CSR initiatives within Indonesia’s coal mining sector. Although PT. PBN has made substantial investments in environmental and community activities, recent evaluations indicate a substantial disparity between stakeholder expectations and the level of actual participation in activities. Gaining insight into the factors contributing to this disparity is vital for the effectiveness of CSR endeavors, as the support of stakeholders and active involvement of the community are crucial for ensuring social sustainability and enduring stability. The study utilizes analyzed data from interviews conducted with both internal and external respondents. It uses problem tree analysis in order to uncover the root causes of low community participation. Focus group discussions are used to delve deeper into the objectives of Value-focused Thinking (VFT) and help determine which alternative solutions should be chosen. The integration of VFT with Analytical Hierarchy Process (AHP) aids decision-making by recognizing the criteria and sub-criteria used to evaluate solutions based on their values. The findings emphasize identifying skill gaps and providing formal acknowledgment to improve the sense of responsibility and involvement of the community in CSR initiatives. This is in line with PT. PBN’s commitment to its stakeholders and the sustainable development of the community in the long run. In the end, decision-makers give the utmost significance to the strategy of licensing and training, considering its long-term impact, effectiveness, resource availability, and ease of control.

CSR Program Social Return on Investment Analysis Case Study: PT PLN Indonesia Power PLTGU Cilegon OMU

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Responsibility and sustainability play a larger role in the activities of global businesses. The practice of Corporate Social Responsibility (CSR) can be used to promote more responsible and sustainable behavior. PT PLN Indonesia Power PLTGU Cilegon OMU is a sub holding of an Indonesian state-owned corporation committed to fostering a responsible and sustainable culture through CSR. The old CSR program in Margasari village, the company’s first ring area, must be replaced because it has come to its exit time. Based on the Social Mapping Document 2022 and interviews, a SWOT analysis is conducted taking into account the current situation of the community. The analysis indicates that a new sewing group named Pujasari could be implemented as the new CSR program in the village of Margasari. Nevertheless, since a CSR program is a social investment, the company must be confident in the program’s future return for the community. This study aims to determine the program’s economic feasibility, Social Return on Investment (SROI) value, variables that may influence SROI achievement, and contribution to the Sustainable Development Goals (SDGs). In calculating SROI, the triple bottom line concept will be used, while the economic feasibility will use capital budgeting method. A sensitivity analysis will be conducted to determine the critical variable for achieving SROI. The study demonstrates that the calculation utilizing the triple bottom line concept (considering economic, social, and environmental benefit) over a 5-year project period yields an NPV of IDR 1,988 mio, an IRR of 109%, with a WACC of 13.349%. The program’s SROI is 20.39, indicating that for every IDR 1 invested by the company in this program, IDR 20.39 in social benefit will be generated. Analysis of sensitivity reveals that WACC, the selling price of rags, working productivity, and price of rag primary materials are, in order, the most sensitive variables affecting the project’s SROI value. In addition, the program demonstrates contribution to SDGs 1, 5, 8, 12, and 13.

Analysing CSR Practice in Regional Development Bank (Bank Pembangunan Daerah) in Indonesia: A case study and proposed solutions

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This article discusses about the corporate social responsibility (CSR) of regional development banks (bank pembangunan daerah or BPD) in Indonesia through a case study of a BPD in East Java province. As a company majority-owned by the local provincial government or governments, a BPD is expected to support the regional development agenda and take a role in improving the local economic welfare, including through CSR programmes, besides providing typical financial and banking services. This improves the notability of BPDs’ CSR programmes, as well as forms expectations on the programme. A suitable and improved CSR programme is therefore necessary to allow BPDs to fulfill its role as a supporter of the local development agenda of the government. This article starts by a brief introduction on the topic of CSR and BPDs in Indonesia, literature review, identification of the issues, analysis, and finally concluded with proposed solutions in relations to the case study. The research in this paper is conducted in qualitative method. Data used for research in this paper were obtained through interviews, company reports, and observation during the author’s internship at the company.

Why Do Firms Apply Non-Market Strategies? Does it Really Pay?

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The purpose of this study is to provide a better understanding to non-market strategies of the firms, their external and internal drivers and whether firms attain gains from these strategies in practice by examining the selected existing studies on firms’ non-market strategies. The vast literature on non-market strategies shows that companies’ support in the political process of overcoming societal troubles and their collaboration with non-profit organizations increase. However, companies do not engage in non-market strategies with a pure altruism, contrarily they expect to reap benefits. The empirical studies on the relationship between non-market strategies and financial performance that are examined within the scope of this study indicate differentiating results. Based on these inconsistent findings of the present studies, the implications and directions for future studies are presented.

Earning Management of Corporate Social Responsibility Mediation and Corporate Governance on Financial Performance (An Empirical Study on Idx Mining Corporates 2016-2020)

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This study aims to examine and analyze corporate social responsibility and corporate governance on financial performance and, through earning management as a mediating variable. Financial performance is the dependent variable which is proxied by ROA and MVA. The independent variables in this study were corporate social responsibility as proxied by 91 GRI 4.0 indicators and corporate governance as proxied by independent commissioners and institutional ownership. Earning management as a mediating variable proxied by discretionary accruals. This study uses a sample of 35 mining companies listed on the Indonesia Stock Exchange from 2016 to 2020. The data used in this study is secondary data analyzed using a multiple linear regression analysis path models with the help of SPSS 25 software, and corporate governance has a positive and significant effect on financial performance. Meanwhile, earning management has a negative and significant effect on financial performance. Corporate social responsibility has a positive and significant effect on earning management, while corporate governance has a negative and significant effect on earning management. Earning management mediates full corporate social responsibility on financial performance, while the board of commissioners partially mediates on financial performance.