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.

Sustainable Development Goals (SDGs) as a Framework for Corporate Social Responsibility (CSR)

“…They define norms and principles for CSR contributions and compel corporations to follow such principles [58,59]. CSR interventions [60] such as government subsidies [61][62][63][64], government support [65], government development programs [66], and government CSR regulations [67,68] are only a few forms of governmental involvement in the field.…”

Penerapan Kebijakan tentang Peraturan Daerah Nomor 7 Tahun 2017 di Kabupaten Buleleng

“…Sejalan dengan hasil penelitian (Nadjib & Zainal, 2020) bahwa dalam rangka mengintegrasikan kewajiban CSR perusahaan dengan program pembangunan daerah maka perlu juga memperhatikan beberapa faktor yaitu integritas pemerintah daerah terkait dengan visi dan program pembangunan daerah serta kepentingan bisnis yang juga harus diadopsi dalam program CSR tersebut, tentunya dalam penerapan Peraturan daerah dan Peraturan Bupati ini perlu dilakukan penggalian persepsi mendalam mengenai program TJSLP dari Perusahaan yang terlibat dalam kegiatan TJSLP di Kabupaten Buleleng sehingga nantinya TJSLP di Kabupaten Buleleng dapat benar-benar dijalankan dan bersinergi dengan program pembangunan daerah. Menurut Rusdi, Yuliansyah, and Gamayuni (2023) implementasi merupakan suatu rangkaian aktivitas dalam rangka menghantarkan kebijakan kepada masyarakat sehingga kebijakan tersebut dapat membawa hasil sebagaimana diharapkan.…”

Corporate Social Responsibility Forum: Private Sector Participation Strategy in Equitable Development of the Regional Government of Muara Enim

“…The adoption of mandated CSR legislation provides an alternative way for developing countries to engage businesses in social provision [17]. However, there is a concern that these programs might fail due to bad experiences in managing social programs [18]. As an implementing regulation of this law, the CSR claims turned into explicit claims for the government and local communities [19] and refer to simultaneously working toward value creation, thus the consequence is beneficial to the firms because it is responding to social demands [20].…”