Integrating Business CSR With Local Government Development Program: Business Perception

Abstract

The mandate of Corporate Social Responsibility (CSR) in Indonesia through various laws and regulations, provide an alternative source of funding for local government for the development and the provision of basic services in their area. However, the process of integrating business CSR with local development program must consider the perception of all relevant stakeholders, namely local government officials and staff or managers managing CSR programs in the company. Business CSR are often placed as an instrument for companies to achieve its interest, such as to obtain a social license, reputation and security of business. This study is aimed at understanding business perceptions in integrating business CSR with local development program. The study took place in Muara Enim Regency, South Sumatra province, which is known as a regent where many mining and plantation companies operating in the region. The method used is a descriptive qualitative research method by conducting unstructured interviews with managers and staff of 10 business companies in this region. The study found that there were differences in perceptions of managers and staff towards the integration of CSR with local development programs. The differences of perception is occurred as the local government is still not adopted the business interests. This can be used as a guideline for all parties as a first step to integrate CSR programs with regional development planning.