The Role of CSR as Corporate-Level Strategy in Mining Companies Case Study in Indonesia

Abstract

The mining business is oriented not on profit-making alone but it should also be oriented on responsibility to the physical and social environment to create sustainability in business with an environmental vision. In practice, mining companies should exercise corporate social responsibility (CSR) from the first time they enter a mining area (exploration). When CSR implementation is maximized, the positive impact on the company will be likewise maximized. This research used a qualitative method with an analysis that referred to McNabb (2002) and in testing for trustworthiness it used a technique presented by Lincoln and Guba (1985). The research objects in this research were PT Weda Bay Nickel and PT Tekindo Energi, mining companies located in Central Halmahera, North Maluku Province. The research findings showed that the CSR programs implemented by mining companies were in the form of community empowerment, infrastructure, and community welfare. The strategies used to promote CSR program implementation involved increasing the investment (the exploration phase), increasing the profit (the production phase), creating a company with good corporate governance, and care for the natural and social environment. Good cooperation should be established between the companies, the government and the community in the implementation and drafting of CSR. CSR implementation provided the benefits of improved community welfare, assistance to the government in achieving sustainable development, and achieved sustainability on the part of the company in running its mining business operation. This research recommends mining companies to carry out CSR programs from the time that they enter a mining area (exploration). The companies should establish good cooperation with the government, the community and other companies in preparing and implementing CSR programs. The companies should be oriented on good CSR implementation in running their mining operation since CSR is a crucial factor which today is incorporated into the vision and mission of mining companies or incorporated into the corporate-level strategy.

Keywords: corporate-level strategy, corporate social responsibility, sustainability of business, sustainability development, community welfare.