Exploration of the social and economic impact of CSR programs in local communities: A Qualitative study
DOI:
https://doi.org/10.62872/bzm01687Keywords:
CSR, social impact, economic impact, reforestation program, sustainabilityAbstract
Corporate Social Responsibility (CSR) programs play a crucial role in sustainable development, particularly in local communities affected by corporate operations. This study explores the social and economic impacts of PT Pertamina’s Reforestation and Greening Program as part of its CSR initiatives. Using a qualitative case study approach, this research collects data through in-depth interviews, field observations, and document analysis. The findings indicate that the program provides social benefits, including increased environmental awareness, active community participation in conservation efforts, and improved quality of life due to a greener environment. From an economic perspective, the program contributes to job creation, increased income through ecotourism and environmentally based businesses, and more sustainable local economic growth. However, challenges remain regarding funding sustainability, long-term community engagement, and risk mitigation of environmental degradation. Therefore, this study recommends a more sustainable CSR model, emphasizing collaboration between companies, the government, and local communities to ensure long-term benefits. These findings contribute to academic discussions and CSR practices, particularly in the context of environmental sustainability and economic empowerment of local communities.
Downloads
References
Abaeian, V., Khong, K. W., Kyid Yeoh, K., & McCabe, S. (2019). Motivations of undertaking CSR initiatives by independent hotels: a holistic approach. International Journal of Contemporary Hospitality Management, 31(6), 2468-2487.
Affrian, R., Sukrisyanto, A., & Kusbandrijo, B. (2021). Evaluation of PT Adaro Indonesia’s Corporate Social Responsibility (CSR) Program Policy, South Kalimantan, Indonesia’. Journal of Public Policy and Administration, 5(3), 90.
Akpinar, M., & Saleem, S. (2019). Creating shared value in international business: A research agenda.
Bello, F. G., & Kamanga, G. (2020). Drivers and barriers of corporate social responsibility in the tourism industry: The case of Malawi. Development Southern Africa, 37(2), 181-196.
Cesar, S. (2021). Corporate social responsibility fit helps to earn the social license to operate in the mining industry. Resources Policy, 74, 101814.
Cesar, S., & Jhony, O. (2020). Corporate Social Responsibility supports the construction of a strong social capital in the mining context: Evidence from Peru. Journal of Cleaner Production, 267, 122162.
Choi, M., & Choi, Y. (2021). Employee perceptions of hotel CSR activities during the COVID-19 pandemic. International Journal of Contemporary Hospitality Management, 33(10), 3355-3378.
Contini, M., Annunziata, E., Rizzi, F., & Frey, M. (2020). Exploring the influence of Corporate Social Responsibility (CSR) domains on consumers’ loyalty: An experiment in BRICS countries. Journal of Cleaner Production, 247, 119158.
Dissanayake, D., Tilt, C. A., & Qian, W. (2021). How do public companies respond to national challenges through sustainability reporting?–The case of Sri Lanka. Qualitative Research in Accounting & Management, 18(4/5), 455-483.
Donnelly, T., & Wickham, M. (2021). Exploring the antecedent resources and capabilities of strategic corporate social responsibility. Social Responsibility Journal, 17(7), 985-1006.
Dwiyahreni, A. A., Fuad, H. A., Soesilo, T. E. B., Margules, C., & Supriatna, J. (2021). Forest cover changes in Indonesia's terrestrial national parks between 2012 and 2017. Biodiversitas, 22, 1235-1242.
Galiatsatos, N., Donoghue, D. N., Watt, P., Bholanath, P., Pickering, J., Hansen, M. C., & Mahmood, A. R. (2020). An assessment of global forest change datasets for national forest monitoring and reporting. Remote Sensing, 12(11), 1790.
Gereziher, B., & Shiferaw, Y. (2020). Corporate social responsibility practice of multinational companies in Ethiopia: a case study of Heineken Brewery SC. British Journal of Arts and Humanities, 2(2), 36-55.
Gooch, P. (2019). Natural resource conflicts and sustainable development. Routledge.
Kunyanti, S. A., & Mujiono, M. (2021). Community Empowerment-based Corporate Social Responsibility Program in Panglima Raja Village. International Journal on Social Science, Economics and Art, 11(1), 12-19.
Kuttner, M., Feldbauer-Durstmüller, B., & Mitter, C. (2021). Corporate social responsibility in Austrian family firms: Socioemotional wealth and stewardship insights from a qualitative approach. Journal of Family Business Management, 11(2), 238-253.
Latapí Agudelo, M. A., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International journal of corporate social responsibility, 4(1), 1-23.
Li, J., Ren, L., Yao, S., Qiao, J., Mikalauskiene, A., & Streimikis, J. (2020). Exploring the relationship between corporate social responsibility and firm competitiveness. Economic research-Ekonomska istraživanja, 33(1), 1621-1646.
Madanaguli, A., Srivastava, S., Ferraris, A., & Dhir, A. (2022). Corporate social responsibility and sustainability in the tourism sector: A systematic literature review and future outlook. Sustainable Development, 30(3), 447-461.
Mahmood, A., Naveed, R. T., Ahmad, N., Scholz, M., Khalique, M., & Adnan, M. (2021). Unleashing the barriers to CSR implementation in the sme sector of a developing economy: A thematic analysis approach. Sustainability, 13(22), 12710.
Mahmud, A., Ding, D., Kiani, A., & Hasan, M. M. (2020). Corporate social responsibility programs and community perceptions of societal progress in Bangladesh: A multimethod approach. Sage Open, 10(2), 2158244020924046.
Masum, A., Aziz, H. H. H. A. A., & Hassan, M. (2020). Corporate social responsibility and its effect on community development: An overview. Journal of Accounting Science, 22(1), 35-40.
McLennan, S., & Banks, G. (2019). Reversing the lens: Why corporate social responsibility is not community development. Corporate Social Responsibility and Environmental Management, 26(1), 117-126.
Ms, S., Zaimah, R., Lyndon, N., Hussain, M.Y., & Awang, A.H. (2015). Local Community Economic Wellbeing through CSR Project. Mediterranean journal of social sciences, 6, 79-79.
Nguyen, H. T., Hoang, T. G., & Luu, H. (2019). Corporate social responsibility in Vietnam: opportunities and innovation experienced by multinational corporation subsidiaries. Social Responsibility Journal, 16(6), 771-792.
Pramono, S., Rasa Putra, A.E., & Shulthoni, M. (2024). Strategy For Implementing Corporate Social Responsibility (Csr) In The Batang Integrated Industrial Area: Realising Sustainable Development Through Economic Empowerment Of Local Communities. Jurnal Ekonomi Bisnis Manajemen dan Akuntansi (JEBISMA).
Ramya, S. M., & Baral, R. (2021). CSR during COVID-19: exploring select organizations’ intents and activities. Corporate Governance: The International Journal of Business in Society, 21(6), 1028-1042.
Rosilawati, Y., & Mulawarman, K. (2019). KEARIFAN LOKAL TRI HITA KARANA DALAM PROGRAM CORPORATE SOCIAL RESPONSIBILITY. Jurnal ASPIKOM.
Sharma, M., & Choubey, A. (2022). Green banking initiatives: a qualitative study on Indian banking sector. Environment, Development and Sustainability, 24(1), 293-319.
Shehzad, A., & Khan, K. I. (2025). Impediments of social responsibility investment adoption system: a post-pandemic qualitative analysis. Qualitative Research in Financial Markets, 17(2), 392-414.
Tawiah, V., Samson, N., & Jatau, U. (2025). Local directors and corporate social responsibility activities of multinational companies in Africa. Corporate Social Responsibility and Environmental Management, 32(2), 1688-1697.
Vilela, T., Malky-Harb, A., & Mendizábal-Vergara, C. (2022). The impact of protected areas on poverty: evidence from Chile. Revista chilena de historia natural, 95.
Wardhani, R., & Rahadian, Y. (2021). Sustainability strategy of Indonesian and Malaysian palm oil industry: A qualitative analysis. Sustainability Accounting, Management and Policy Journal, 12(5), 1077-1107.
Zou, Z., Liu, Y., Ahmad, N., Sial, M. S., Badulescu, A., Zia-Ud-Din, M., & Badulescu, D. (2021). What prompts small and medium enterprises to implement CSR? A qualitative insight from an emerging economy. Sustainability, 13(2), 952.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Ilham Samanlangi, Olyvia Rosalia, Firayani (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
