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Practice of Corporate Social Responsibility (CSR) in Extractives Sector in Indonesia

In: Sovereign Wealth Funds, Local Content Policies and CSR

Author

Listed:
  • Yudo Anggoro

    (Institut Teknologi Bandung)

  • Adita Pritasari

    (Institut Teknologi Bandung)

  • Rivana Mezaya

    (Institut Teknologi Bandung)

  • Dematria Pringgabayu

    (Institut Teknologi Bandung)

  • Dany Muhammad Athory Ramdlany

    (Institut Teknologi Bandung)

Abstract

Corporate social responsibility (CSR) has been receiving wide attention as this practice implies the efforts of corporations and industries to contribute to society. While the practice of CSR is expected to promote economic and social development, CSR practices in extractives sector, especially in developing countries, invites debates from stakeholders. The debates are mostly related to the negative image of the extractives sectors in harming the environment and exploiting local people. From the corporation side, debates are related to what kinds of CSR the community desires and how much money corporations for their CSR activities spend. This chapter explores the practice of CSR in the extractives sector in Indonesia, where the extractives sector has been the backbone of the economy for years. It starts with some reviews on the extractives sector and its operations in Indonesia, then the best and worst experiences in CSR practices in the extractives sector, and finally provides the main challenges that the extractives sector is facing and strategies to overcome those challenges. This chapter concludes that CSR practices in the extractives sector are sometimes performed to minimize the negative image of the industries. Often corporations perform CSR activities in order to be perceived as having good business practices by the community.

Suggested Citation

  • Yudo Anggoro & Adita Pritasari & Rivana Mezaya & Dematria Pringgabayu & Dany Muhammad Athory Ramdlany, 2021. "Practice of Corporate Social Responsibility (CSR) in Extractives Sector in Indonesia," CSR, Sustainability, Ethics & Governance, in: Eduardo G. Pereira & Rochelle Spencer & Jonathon W. Moses (ed.), Sovereign Wealth Funds, Local Content Policies and CSR, pages 483-497, Springer.
    • Handle: RePEc:spr:csrchp:978-3-030-56092-8_27
    DOI: 10.1007/978-3-030-56092-8_27
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    Cited by:

    1. Naveed Ahmad & Zia Ullah & Asif Mahmood & Antonio Ariza-Montes & Alejandro Vega-Muñoz & Heesup Han & Miklas Scholz, 2021. "Corporate Social Responsibility at the Micro-Level as a “New Organizational Value” for Sustainability: Are Females More Aligned towards It?," IJERPH, MDPI, vol. 18(4), pages 1-14, February.

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