Empowered Community vs Dependent Community: Corporate Social Responsibility (CSR) Implications by Mining Companies in South Sumatra Province

Resnawaty Risna and Rivani
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Resnawaty Risna: Lecturer at Department of Social Welfare, Padjadjaran University, Padjadjaran, Indonesia
Rivani: Lecturer at Department of Business Administration, Padjadjaran University, Padjadjaran, Indonesia

Mediterranean Journal of Social Sciences, 2017, vol. 8, issue 5-1, 69-78

Abstract: Mining business actors have an obligation to maintain the sustainability of the surrounding environment, both in the physical and the social environment. Coal mining extraction activities are closely related to the exploration and exploitation of natural resources. This activity is in contact with the interests of the surrounding community, in particular with the negative impact caused. Mining companies in Indonesia are bound by the Mineral and Coal Mining Act no. 4 of 2009 to carry out community development and empowerment. Under the law, the companies are required to implement Corporate Social Responsibility (CSR). Through the implementation of CSR is expected the company can provide a positive change for the survival of communities around the mining area. PT BARA is one of mining companies that had been implementing CSR since 1983. As a state-owned company PT. BARA has various binding regulations in the implementation of CSR. The regulation comes from the central government as well as the local government in which PT. BARA does its mining business. Every year PT BARA releases an enormous amount of CSR funds, but the surrounding community is still in a state of poverty. It turns out that the problem does not stop on poverty at all. The community becomes very dependent on the company's assistance. The purpose of the CSR program is to develop and empower the community has not been able to achieve the goal. This dependence is caused by various reasons such as CSR policies of companies as well as government and CSR implementation on society.

Keywords: Corporate Social Responsibility; Community Development; Community Empowerment (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:mjsosc:v:8:y:2017:i:5-1:p:69-78:n:8

DOI: 10.2478/mjss-2018-0098

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