The Role of Human Resources Management in Corporate Social Responsibility at PT Kutai Timber Indonesia (PT. KTI)

Abstract

The existence of companies earning profits through extracting of natural resources from community’s/inhabitant’s environment has contributed to the growing awareness about the concept of Corporate Social Responsibility (CSR). Aspects of CSR related to employee participation require support from human resource management (HRM). Although research linking the role of HRM and CSR has seen a significant increase, but there is still no comprehensive approach that examines these two concepts jointly. This study aims to consider the structure of CSR-HRM at PT Kutai Timber Indonesia (PT KTI), the role of HRM in the development and implementation of CSR, and the contribution of HRM in corporate sustainability through CSR at PT KTI. The study used a qualitative approach to the type of case study research. Data collection techniques included in-depth interviews, observation, and documentation. Data analysis in this study was carried out in three stages, namely data reduction, data presentation, and final conclusion. The validity test of data is used the method of source triangulation and technical triangulation. The research findings conclude that the understanding of CSR adopted by PT KTI was still focused on the external dimension, so the structure of PT KTI’s CSR-HRM was limited to administrative relations. HRM in the HRD Department of PT KTI does not have a strategic role related to the development of CSR, but has an administrative role related to employee licensing in implementing CSR. PT KTI’s HRD department contributes to corporate sustainability through HRM core tasks. The limitation of this study is its limitation to be generalized to other sites/objects. The sound generalization could be applied only to objects/sites that have similar or similar characteristics.
 Keywords: CSR, the role of HRM, corporate sustainability, PT KTI.