Implementation of Strategic Corporate Social Responsibility Model of Plantation Companies in Pandhalungan Area: A Comparative Study

Abstract

In carrying out their social responsibilities, companies can carry out their social responsibility activities in line with achieving their strategic objectives. However, on the other hand, the companies can implement CSR which is unwittingly not in line with companies'strategic objectives. As a company, a state-owned plantation company and regional-owned plantation company also should carry out Corporate Social Responsibility (CSR) activities. The obligation arises because types of both companies are exploring or managing natural resources. This study aims to analyze the differences in the implementation of strategic corporate social responsibility model between regionally-owned plantation company and large state-owned plantation company in Pandhalungan area. The objects of this study are regionally-owned plantation company called as Company X and a given plantation of state-owned plantation company called as Company Y. The analysis method of this study is comparison. In analyzing data, this study used a CSR strategic model matrix developed by Sayekti (2011) that integrated GRI, value chain, and diamond framework indicators. The results of this study found differences in the implementation of strategic CSR model between both study objects. Company X undertook only strategic CSR activities, whereas Company Y undertook CSR activities both strategic and non-strategic. That difference caused by various factors, including the difference in vision and mission and companies’ objectives, the difference in binding regulations related to CSR activities, and the difference in CSR budgeting. Furthermore, the results of this study also showed the difference in the influence of strategic CSR implementation carried out by both companies.