Community development in small-scale business to improve the company image and secure the company operation

Abstract

Community development is an effort to develop the potential of the community through active participation, with the aim of making the local people self-sufficient. Community development programs by companies are programs established, as a part of social responsibility (in order to implement the good corporate governance), to promote sustainable economic growth, livelihood, education, skills building, health and welfare of a company’s stakeholders, particularly people who are located near or affected by a company’s operations. In fact community development is a government and people’s responsibility. The company assists government programs in order to increase the quality of public welfare. Community development program by Medco E&P Indonesia (MEPI) consist of several development area such as infrastructure, economic, education, culture, religion, sport and environment preservation. Community development in economic sector has main goal to improve the economic welfare of the community in surrounding the company’s operation area. The paper focuses on economic of community development programs in promoting of small-scale business engaged in agribusiness and small trading in rural area surrounding the company operation area. The program is called Micro Financing Services (MFS) Program which has being done by MEPI and Medco Holding. The paper is based on the research on small-scale businesses received MFS Program in three villages of Kecamatan Lais and three villages of Kecamatan of Sekayu, Musi Banyuasin Regency, South Sumatera Province. The study utilized survey and key informant interview as research method. In the survey, operators/owners * Medco E&P Indonesia of small-scale business received MFS Program were interviewed. Key informant interviews done among persons involved in promotion small-scale business such as village facilitator of MFS Program, the informal and the formal leaders in the study area. The two research methods were complemented by observations of the said small-scale businesses. The paper describes the community development programs in the small-scale businesses through MFS Program improve the company image and secure the company operation. The describing are based on the facts be founded in the field One of the study results is the principal conclusion. As the principal conclusion, the paper states that community development programs in small-scale business could increase the quality of the community welfare. Increasing the welfare of the community in surrounding of the company’s operation area reduces the activities to disturb company operation. In the other hand, company efforts to increase the public welfare through the community development program in small-scale business could improve the company image.