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The Meaningful practice creating shared value as a contribute to sustainable development goals:Case study at Pt Pupuk Kaltim

Author

Listed:
  • Alan Smith Purba

    (Faculty of Law, Brawijaya University, Veteran Street no. 1 Post code: 65125, Malang City, Indonesia)

  • Eko Ganis Sukoharsono

    (Faculty of Law, Brawijaya University, Veteran Street no. 1 Post code: 65125, Malang City, Indonesia)

  • Bambang Hariadi

    (Faculty of Law, Brawijaya University, Veteran Street no. 1 Post code: 65125, Malang City, Indonesia)

Abstract

This study aims to reveal the meaning of the Creating Shared Value (CSV) practice as a contribution to Sustainable Development Goals (SDGs) at PT Pupuk Kaltim (PKT) with a case study approach. CSV with Corporate Social Responsibility (CSR) is a concept that does have the same umbrella, which is a charity to the community and contributes to SDG's but in practice these two concepts are different. The difference lies in the value generated. CSV provides significant value to the company in the form of profit in the form of reducing the company's activity costs and is related to the company's core business products so that the value that arises to the company is not only a good view (image) by the community. When implementing the CSR concept, the company focuses on carrying out charity actions to the community so that it creates a good corporate image by the community and does not focus on the value that is generated profitably to the company. PKT has implemented CSV practice with the floating net cages (FNC) program. The KJA program carries out activities with the grouper and lobster cultivation program and PKT's business activity is in the field of fertilizers. FNC has provided a good view from the community for PKT but the FNC that is claimed by PKT as an FNC Program is not yet a concept of CSV. In practice, FNC is more appropriate to say CSR because it has not provided profit value for PKT. Key Words:Public Image, Sustainable Development Goal, Shared Value

Suggested Citation

  • Alan Smith Purba & Eko Ganis Sukoharsono & Bambang Hariadi, 2020. "The Meaningful practice creating shared value as a contribute to sustainable development goals:Case study at Pt Pupuk Kaltim," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(7), pages 222-232, December.
    • Handle: RePEc:rbs:ijbrss:v:9:y:2020:i:7:p:222-232
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    References listed on IDEAS

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    3. Belen Lopez & Abel Monfort, 2017. "Creating Shared Value in the Context of Sustainability: The Communication Strategy of MNCs," Chapters, in: Okechukwu Lawrence Emeagwali (ed.), Corporate Governance and Strategic Decision Making, IntechOpen.
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    5. Rebecca Chunghee Kim, 2018. "Can Creating Shared Value (CSV) and the United Nations Sustainable Development Goals (UN SDGs) Collaborate for a Better World? Insights from East Asia," Sustainability, MDPI, vol. 10(11), pages 1-26, November.
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