Behind the Mask of Virtue: CSR Indocement's Original Face in the Conflict of Cement Factory Construction in Pati

Arif Novianto,Yuyun Purbokusumo,Kurnia Cahyaningrum Effendi

doi:10.22146/pcd.v9i1.3760

Abstract

Discourses about Corporate Social Responsibility (CSR) are generally understood as goodwill and social virtue. This research with a CSR Indocement case study in the Pati District found something different in the study in areas that have not been affected by and in the process of expansion from PT SMS (a subsidiary of PT Indocement Tunggal Prakarsa). CSR Indocement, which has been run in Pati since 2012, is not based on a business ethic or corporate social virtue model. With political economy analysis, we found that 1) CSR Indocement runs in Pati as an effort to expedite the expansion of their capital which has strong resistance from the community rejecting the cement factory; 2) CSR Indocement for the last five years in Pati, nearly 90 programs that have been attempted none have been able to empower the community. These efforts were influenced by two things: 1) In carrying out its program CSR Indocement brought the program to the village elites. 2) CSR Indocement's initial goal for Pati was to build a consensus to give a red carpet for capital expansion so that the goal of empowerment is not paramount.

Highlights

The Corporate Social Responsibility (CSR) paradigm began to emerge and become part of the public discourse in Indonesia in the mid-2000s (Rosser & Edwin, 2010, p. 3)
PT Indocement assigned the team from its Bogor factory to handle its CSR programmes in Pati, as the factory was not yet completed
Between 2010 and 2017, PT Sahabat Mulya Sakti (SMS) sought to fulfil the legal requirements for factory construction, which included the need to build a consensus in the affected community

Summary

Introduction

The Corporate Social Responsibility (CSR) paradigm began to emerge and become part of the public discourse in Indonesia in the mid-2000s (Rosser & Edwin, 2010, p. 3). The Corporate Social Responsibility (CSR) paradigm began to emerge and become part of the public discourse in Indonesia in the mid-2000s 1995, CSR is defined by Smith (2003) as companies' environmental and social responsibility towards the outside world. Commission, defines CSR as a concept through which companies voluntarily integrate social and environmental concerns into their business operations and interactions with stakeholders CSR has become a widely discussed part of a public discourse. Indonesia became the first country to regulate CSR through its laws and regulations (Rosser & Edwin, 2010). Governments at the provincial and district/city levels sought to create regulations governing the implementation of CSR for every company in their region

Methods

Results

Discussion

Conclusion