Corporate Social Responsibility of Oil Palm Companies in East Kutai Regency, East Kalimantan Province, Indonesia

Abstract

This research aims to analyze the implementation of East Kutai Palm Oil Companies Corporate Social Responsibility. This is a deductive-qualitative research by data collecting through observation and semi-structure interview to the company middle line. This research was conducted in three companies in East Kutai Regency, East Kalimantan Province in three different sub-districts namely Sangkulirang Sub-district, Muara Ancalong Sub-district and Sandaran Sub-district. The research focuses are the implementation of CSR in community development which is studied from its contribution in the social, education, economy, health, environtmental conservation and infrastructure and its inhibiting factors. The research results showed that CSR conducted by oil palm companies in East Kutai Regency only use a philanthropic approach, not on a socially responsible business practice approach. The inhibiting factor of CSR implementation in community development in East Kutai is the attitude of the company that has only made the community as beneficiary, but does not involve the community in the planning and implementation of the program. The authors recommend applying the process model and/or public choice in the process of program formulation so that the CSR implemented can gain good support or participation from the surrounding community and can make a meaningful contribution to them. The implementation of CSR also needs to pay attention to the achievement of the aspects of benefits, conformance, impact and sustainability to obtain good acceptance from the community around the company’s existence.