| Summary: | Businesses today base their strategic management decision in the increase of sales,
profit, and social responsibility of companies. In the globalization era, businesses
are related to the social responsibility of companies or what is called as Corporate
Social Responsibility (CSR). This social responsibility is not only viewed as an
added value to improve the social condition in the proximity of companies, but
also as a strategy to improve and develop their business on a wider market
segment, namely across countries and regions. Currently, palm oil industry is
being closely watched by the world because it is not utilizing sustainability
concept optimally, not improving the welfare of people living in the proximity of
the plantation adequately, and more importantly, is causing damage to the
environment. RSPO (Roundtable Sustainable Palm Oil) Certification, which
consists of principles and criteria, has a role to bridge producer and consumer
countries with regards to the fulfillment of sustainable palm oil plantations and
Corporate Social Responsibility towards the environment.
The author in this case conducts case study research by using quantitative analysis
method through survey data collection. The objective of this research is to provide
recommendation on the sustainability of CSR in a company. The author attempts
to analyze how CSR that is being implemented by PT. Agro Indomas supports the
feasibility of Sustainable Palm Oil Certification / CSPO. The first stage of the
research is descriptive analysis of the implementation of CSR program to know
the assessment of stakeholders on CSR Program, which is done through CSR
dimension category analysis using questionnaire with total respondents of 53
people. The CSR dimensions analyzed refer to Nor Hadi (2011), namely
environment, community, staff, energy, product, etc. Next, gap analysis is
performed on CSR implementation to obtain information in the form of gap value
between program implementation and interest level expected by stakeholders, so
that aspects that should be improved in CSR program implementation can be
evaluated. This analysis includes 2 stages, the first stage is to know the difference
between interest level and satisfaction level experienced by stakeholders, and to
establish medium or standard value from both satisfaction and interest side using
quadrant descriptive statistics analysis, Important Performance Analysis (IPA),
which is an evaluation on the fourth quadrant from the first gap analysis stage, in
which it is interpreted that these aspects are importantly valued by stakeholders,
but they are not satisfied by the performance of management. Next, SWOT
analysis is performed to assess some internal and external aspects of the company,
which will theoritically categorized by the author into the strengths and
weaknesses of the company. This analysis uses primary data obtained through
analysis result of focus group discussion on the expectation of stakeholders,
observation of company sistem on the field and secondary data of literature
research. The result of these three stages is compiled into data to formulate CSR
factors and company SWOT so that the company can establish its priority in
improving program management and company management in order to achieve feasibility for RSPO certification. A questionnaire is made based on FGD result
and is filled by 53 respondents. The analysis of these dominant factors uses
multivariant inferrential statistics analysis, Confirmatory Factor Analysis (CFA).
From the series of analysis results, in general CSR program of PT. Argo Indomas
has been well performed, which is proven by high categorization score of all CSR
dimensions. From six CSR dimensions elaborated in 63 indicators, there are 39
indicators which are considered important by stakeholders. Out of these 39
indicators, there are 21 indicators deemed not to have been implemented
optimally due to the activities have not fulfilled the expectation of the
stakeholders. From 6 CSR dimensions, 5 of them are significant factors in
forming CSR variable. Staff dimension is the most dominant factor in CSR
program. Furthermore, from SWOT analysis, there are 10 aspects that are the
threats and weaknesses of the company that need to be improved to obtain CSPO.
From 3 SWOT dimensions, (environment, economy, and social), which
according to stakeholders are the weaknesses and threats of the company, all of
them are significant factors in forming SWOT variable, and social dimension is
the most dominant factor that needs to be developed and its indicators improved.
As one of the efforts to obtain CSPO, the author recommends establishing
strategic steps to improve indicators that are importantly valued by stakeholders.
Such indicators include waste management and processing, research related to
environment, environmental rehabilitation and reclamation, environmental
planning and management system, compliance to rules and regulations, help
repairing road and neighborhood lighting, managing unemployment in the
proximity of the company, improving the welfare and economy of the
surrounding people, help in health care, clean water, help in art and culture, help
in sports, help in relieving natural disaster, praying and public facilities,
partnership and harmony with surrounding people, tolerance among members of
the community and religious communities, cooperation with national and
international institutions to improve people�s quality of life, program to eradicate
HIV and drug abuse, health insurance, improving skills, education, and training,
help in providing housing and education for the staff�s children and families,
implementation of good corporate code of conduct, leave programs and gender
bias issues.
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