Integrating CSR and community aspirations: A case study of a Nickel-Alloy Company in Bantaeng Regency's coastal area

Nur Alifhia Muhammad; Moch Thahir Haning; Muhammad Yunus

doi:10.31893/multiscience.2025294

Keywords:

Abstract

This study examines the effectiveness of Corporate Social Responsibility (CSR) management by PT Huadi Nickel Alloy Indonesia in the coastal area of Bantaeng Regency, with a focus on the integration indicator. The research employs a qualitative method with a descriptive approach, utilizing interviews as the primary data collection technique, complemented by observations and relevant documents. The findings reveal that PT Huadi Nickel Alloy Indonesia has demonstrated commendable efforts in establishing relationships and communication with the community, government, and other stakeholders. This integration is evident from the coordination and collaboration in CSR program planning and implementation, active involvement of the community and local employees, and the benefits experienced by the community. The company's commitment to CSR is reflected in its efforts to align its programs with the needs and aspirations of the local community, as well as its adherence to government regulations and industry standards. However, the study also identifies areas for improvement, particularly in capturing and responding to the community's needs for additional CSR programs. The research suggests that by continuously strengthening communication, collaboration, and sensitivity to community aspirations, PT Huadi Nickel Alloy Indonesia can enhance the effectiveness of its CSR management, thereby providing broader and more sustainable benefits to the communities surrounding the industrial area. This can be achieved through regular stakeholder engagement, needs assessments, and the incorporation of community feedback into the company's CSR strategy and decision-making processes. The study contributes to the understanding of CSR integration and its impact on business and society, while also highlighting the need for further research to address its limitations and explore new avenues for investigation. Future studies may consider expanding the scope to include other indicators of CSR effectiveness, such as sustainability, transparency, and accountability, as well as examining the long-term impacts of CSR initiatives on the socio-economic development of the region.
References
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31. Schoeneborn, D., & Trittin, H. (2013). Transcending transmission: Towards a constitutive perspective on CSR communication. Corporate Communications: An International Journal, 18(2), 193–211. https://doi.org/10.1108/13563281311319481
32. Silva Junior, A. D., Martins-Silva, P. D. O., Coelho, V. D., & Sousa, A. F. D. (2023). The corporate social responsibility pyramid: Its evolution and the proposal of the spinner, a theoretical refinement. Social Responsibility Journal, 19(2), 358–376. https://doi.org/10.1108/SRJ-05-2021-0180
33. Steers, R. M. (1976). When is an organization effective? A process approach to understanding effectiveness. Organizational Dynamics, 5(2), 50–63. https://doi.org/10.1016/0090-2616(76)90054-1
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35. Van Cong, N., Thanh, T. D., & Nhon, D. H. (2020). Integrated coastal zone management in Vietnam: Status and emerging problems. Vietnam Journal of Marine Science and Technology, 20(4), 369–381. https://doi.org/10.15625/1859-3097/15316
36. Visser, W. (2011). The age of responsibility: CSR 2.0 and the new DNA of business. Journal of Business Systems, Governance and Ethics, 5(3), 7–22.
37. Waagstein, P. R. (2011). The mandatory corporate social responsibility in Indonesia: Problems and implications. Journal of Business Ethics, 98(3), 455–466. https://doi.org/10.1007/s10551-010-0587-x
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39. Zhao, X., Wu, C., Chen, C. C., & Zhou, Z. (2022). The influence of corporate social responsibility on incumbent employees: A meta-analytic investigation of the mediating and moderating mechanisms. Journal of Management, 48(1), 114–146. https://doi.org/10.1177/0149206320946108

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Muhammad, N. A., Haning, M. T., & Yunus, M. (2024). Integrating CSR and community aspirations: A case study of a Nickel-Alloy Company in Bantaeng Regency’s coastal area. Multidisciplinary Science Journal, 7(6), 2025294. https://doi.org/10.31893/multiscience.2025294

[1] Andrews, N., Bennett, N. J., Le Billon, P., Green, S. J., Cisneros-Montemayor, A. M., Amongin, S., ... & Sumaila, U. R. (2021). Oil, fisheries and coastal communities: A review of impacts on the environment, livelihoods, space and governance. Energy Research & Social Science, 75, 102009. https://doi.org/10.1016/j.erss.2021.102009

[2] Angga, L. O., Akyuwen, R. J., Laturette, A. I., Daties, D. R., Tuhulele, P., Labetubun, M. A. H., & Taufik, I. (2021). Responsibilities of industry actors to environmental conservation in coastal areas. International Journal of Sustainable Development & Planning, 16(4). https://doi.org/10.18280/ijsdp.160405

[3] Arief, A., & Bachmid, F. (2023, December). Human rights and environmental balance: Legal protection in the energy and mining industries. In Proceedings of the International Conference on “Changing of Law: Business Law, Local Wisdom and Tourism Industry” (ICCLB 2023) (Vol. 804, p. 185). Springer Nature. https://doi.org/10.2991/978-2-38476-180-7_21

[4] Aulia, D., Ilmar, A., & Aspan, Z. (2020). Relasi hak asasi manusia dan tanggung jawab hukum perusahaan pengolahan dan pemurnian nikel. Al-Azhar Islamic Law Review, 42–53. https://doi.org/10.37146/ailrev.v2i1.38

[5] Ayu, K. R., & Supartoko, B. (2020). Strategi Perusahaan Sido Muncul dalam pengembangan kegiatan corporate social responsibility. Warta Ikatan Sarjana Komunikasi Indonesia, 3(01), 1–12. http://dx.doi.org/10.25008/wartaiski.v3i01.47

[6] Baden, D. (2016). A reconstruction of Carroll’s pyramid of corporate social responsibility for the 21st century. International Journal of Corporate Social Responsibility, 1(1), 8. https://doi.org/10.1186/s40991-016-0008-2

[7] Bantaeng Regency Government. (2012). Bantaeng Regional Regulation No. 2 of 2012 on Spatial Planning of Bantaeng Regency 2012–2032. Bantaeng: Bantaeng Regency Government.

[8] Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

[9] Carroll, A. B. (2015). The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders. Business Horizons, 34(4), 39–48. https://doi.org/10.1016/j.orgdyn.2015.02.002

[10] Coordinating Ministry for Economic Affairs. (2022). Regulation of the Coordinating Minister for Economic Affairs of the Republic of Indonesia No. 9 of 2022 on Amendments to the Regulation of the Coordinating Minister for Economic Affairs No. 7 of 2021 on Changes to the List of National Strategic Projects. Jakarta: Coordinating Ministry for Economic Affairs.

[11] Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). Thousand Oaks, CA: Sage.

[12] De Lange, D. E., Busch, T., & Delgado-Ceballos, J. (2012). Sustaining sustainability in organizations. Journal of Business Ethics, 110, 151–156.

[13] DiMaggio, P. J., & Powell, W. W. (2000). The iron cage revisited institutional isomorphism and collective rationality in organizational fields. In J. A. C. Baum & F. Dobbin (Eds.), Economics Meets Sociology in Strategic Management (Advances in Strategic Management, Vol. 17, pp. 143–166). Emerald Group Publishing Limited. https://doi.org/10.1016/S0742-3322(00)17011-1

[14] Elkington, J. (2000). Cannibals with forks: The triple bottom line of 21st century business. Journal of Business Ethics, 23(2), 229–231. https://doi.org/10.1023/a:1006129603978

[15] Filho, J. M. de S., Wanderley, L. S. O., Gómez, C. P., & Farache, F. (2010). Strategic corporate social responsibility management for competitive advantage. BAR-Brazilian Administration Review, 7(3), 294–309. https://doi.org/10.1590/S1807-76922010000300006

[16] Freeman, R. E. (1984). Strategic management: A stakeholder approach. Boston: Pitman.

[17] Freeman, R. E. (2015). Stakeholder theory. In C. L. Cooper (Ed.), Wiley Encyclopedia of Management. https://doi.org/10.1002/9781118785317.weom020179

[18] Government of the Republic of Indonesia. (2007). Law of the Republic of Indonesia No. 40 of 2007 on Limited Liability Companies. Jakarta: Government of the Republic of Indonesia.

[19] Government of the Republic of Indonesia. (2012). Government Regulation of the Republic of Indonesia No. 47 of 2012 on Social and Environmental Responsibility of Limited Liability Companies. Jakarta: Government of the Republic of Indonesia.

[20] Idemudia, U. (2011). Corporate social responsibility and developing countries: Moving the critical CSR research agenda in Africa forward. Progress in Development Studies, 11(1), 1–18. https://doi.org/10.1177/146499341001100101

[21] Ismail, M., Alias, S. N., & Mohd Rasdi, R. (2014). Community as stakeholder of the corporate social responsibility programme in Malaysia: Outcomes in community development. Social Responsibility Journal, 11(1), 109–130. https://doi.org/10.1108/SRJ-05-2013-0053

[22] Jain, T., & Jamali, D. (2016). Looking inside the black box: The effect of corporate governance on corporate social responsibility. Corporate Governance: An International Review, 24(3), 253–273. https://doi.org/10.1111/corg.12154

[23] Kolk, A., & Lenfant, F. (2012). Business–NGO collaboration in a conflict setting: Partnership activities in the Democratic Republic of Congo. Business & Society, 51(3), 478–511. https://doi.org/10.1177/0007650312446474

[24] Muthuri, J. N., Chapple, W., & Moon, J. (2009). An integrated approach to implementing 'community participation' in corporate community involvement: Lessons from Magadi Soda Company in Kenya. Journal of Business Ethics, 85(2), 431–444. https://doi.org/10.1007/s10551-008-9739-7

[25] Nurfatimah, N. (2023). Potensi pencemaran lingkungan akibat aktivitas pertambangan pada kawasan industri Kab. Bantaeng. Plano Madani: Jurnal Perencanaan Wilayah dan Kota, 12(1), 58–64. https://doi.org/10.24252/jpm.v12i1.40888

[26] Owusu, V. (2019). Impacts of the petroleum industry on the livelihoods of fisherfolk in Ghana: A case study of the Western Region. The Extractive Industries and Society, 6(4), 1256–1264. https://doi.org/10.1016/j.exis.2019.11.002

[27] Prodnik, J. A. (2023). The crisis of legitimacy and the appropriation of resistance in capitalism. TripleC: Communication, Capitalism & Critique. Open Access Journal for a Global Sustainable Information Society, 21(1), 51–73. https://doi.org/10.31269/triplec.v21i1.1403

[28] Putnam, R. D. (2000). Bowling alone: The collapse and revival of American community. New York: Simon & Schuster.

[29] Quang, T. D., Nguyen, Q. X. T., Nguyen, H. V., Dang, V. Q., & Tang, N. T. (2023). Toward sustainable community-based tourism development: Perspectives from local people in Nhon Ly coastal community, Binh Dinh province, Vietnam. PLOS ONE, 18(10), e0287522. https://doi.org/10.1371/journal.pone.0287522

[30] Saenz, C. (2018). Building legitimacy and trust between a mining company and a community to earn social license to operate: A Peruvian case study. Corporate Social Responsibility and Environmental Management, 25(6), 1190–1196. https://doi.org/10.1002/csr.1679

[31] Schoeneborn, D., & Trittin, H. (2013). Transcending transmission: Towards a constitutive perspective on CSR communication. Corporate Communications: An International Journal, 18(2), 193–211. https://doi.org/10.1108/13563281311319481

[32] Silva Junior, A. D., Martins-Silva, P. D. O., Coelho, V. D., & Sousa, A. F. D. (2023). The corporate social responsibility pyramid: Its evolution and the proposal of the spinner, a theoretical refinement. Social Responsibility Journal, 19(2), 358–376. https://doi.org/10.1108/SRJ-05-2021-0180

[33] Steers, R. M. (1976). When is an organization effective? A process approach to understanding effectiveness. Organizational Dynamics, 5(2), 50–63. https://doi.org/10.1016/0090-2616(76)90054-1

[34] Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331

[35] Van Cong, N., Thanh, T. D., & Nhon, D. H. (2020). Integrated coastal zone management in Vietnam: Status and emerging problems. Vietnam Journal of Marine Science and Technology, 20(4), 369–381. https://doi.org/10.15625/1859-3097/15316

[36] Visser, W. (2011). The age of responsibility: CSR 2.0 and the new DNA of business. Journal of Business Systems, Governance and Ethics, 5(3), 7–22.

[37] Waagstein, P. R. (2011). The mandatory corporate social responsibility in Indonesia: Problems and implications. Journal of Business Ethics, 98(3), 455–466. https://doi.org/10.1007/s10551-010-0587-x

[38] Zaman, R., Jain, T., Samara, G., & Jamali, D. (2022). Corporate governance meets corporate social responsibility: Mapping the interface. Business & Society, 61(3), 690–752. https://doi.org/10.1177/0007650320973415

[39] Zhao, X., Wu, C., Chen, C. C., & Zhou, Z. (2022). The influence of corporate social responsibility on incumbent employees: A meta-analytic investigation of the mediating and moderating mechanisms. Journal of Management, 48(1), 114–146. https://doi.org/10.1177/0149206320946108

Abstract

References

How to cite