Social License as a Corporate Sustainability Strategy PT Pupuk Kalimantan Timur

Abstract

Social License is a form of acceptance and support given by the community to the company's operations, as part of the social attitude of the community, the results of social legitimacy are dynamic and can change according to the relationship between the company and the community. This study aims to determine the level of social legitimacy of the company's operations by the community in the form of the value of social license (Social License Index). This research was conducted in the Ring 1 and Ring 2 areas of the company, namely Bontang Baru Village which is the company's Ring 1 area, Bontang Kuala Village and Gusung Island Meru, North Bontang District, Bontang City, East Kalimantan Province during the period January to July 2020. This study uses mixed methods. Measurement of the value of Social License Index (SLI) using a quantitative method with 30 respondents from the community and processed using Microsoft Excel software, then to determine the quality and narrative of social legitimacy used a qualitative descriptive method by conducting in-depth interviews with 10 informants who are considered to know the conditions program. The results of the study indicate that the social legitimacy given by the community to the company's operations shows a value of 3,95 or is included in the High Approval category. This category shows that the community has accepted and trusted the company's operations in people's daily lives. This is supported by evidence of the success of the Tanjung Limau Floating Cage (KJA) CSR program implemented in the company's Ring 1 area, which has shown a positive impact on the company and the community.