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

Abstract

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.