Community Satisfaction to Corporate Social Responsibility (CSR) Programs for Rural Economic Empowerment

Mochamad Sugiarto,Adhi Iman Sulaiman

doi:10.47577/tssj.v15i1.2262

Mochamad Sugiarto, Adhi Iman Sulaiman

Open Access

https://doi.org/10.47577/tssj.v15i1.2262

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Abstract

This study aims to analyzing the implementation of a cement manufacturer’s CSR programs to improve effectiveness and satisfaction of people in general. The research conducted using survey method to 86 respondents, who are members of Joint Business Group in Cilacap Regency and beneficiaries of Corporate Social Responsibility (CSR) programs. The data were collected through observation, questionnaires, interviews and discussions, then used descriptive statistical analysis and qualitative narrative. The research results have found that the company’s direct involvement model in a CSR program gives several advantages. Nevertheless, the limited quantity and quality of this cement manufacturer’s CSR administrators result in less effective planning, assistance and evaluation processes. People are satisfied with how the CSR is executed by the cement manufacturer, yet the program they carry out has not completely matched what these people need and cannot correctly identify the CSR program beneficiary targets. In relation to this, the implementation of CSR using direct involvement model needs some improvement to make it more effective and intensive. The modification of direct involvement model by use of information technology becomes an important alternative to deal with the limited quantitaty and quality of human resources of CSR program administrators.

Highlights

People’s economic empowerment constitutes a systematic and well-planned effort to increase people’s economic capacity to make them more productive and competitive
The primary data are collected by way of structured interview using questionnaire to 89 respondents who are randomly selected members of KUB and the cement manufacturer’s Corporate Social Responsibility (CSR) administrators in Cilacap Regency selected purposively using their understanding of public relations program as the criterion
The sustainability of rural development in the area of Cilacap Regency cannot be separated from the economic motivation of business actors, benefits for the surrounding community and conservation of the environment around the location of economic activities

Summary

Introduction

People’s economic empowerment constitutes a systematic and well-planned effort to increase people’s economic capacity to make them more productive and competitive. The involvement of society, government and private sector in people’s economic empowerment is what expected to change people’s socio-economic status. Cilacap Regency is an industry-based region whose population is still affiliated to agriculture and non-service sectors. One of those companies operating their businesses in Cilacap Regency is the national cement manufacturer. Negative perceptions can arise due to the lack of hope for future community involvement. The existence of this company with cement as its main product has given a great commitment to people’s development in economic, education, health and environment fields in the form of Corporate Social Responsibility (CSR)

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