Corporate social responsibility programs in mining areas: insights from stakeholder groups in Indonesia

Abstract

One of the prominent mining companies in Indonesia, PT Vale, have invested in vast corporate social responsibility programs in the fields of environment protection, social livelihood, employment, and economic resilience towards locals in mining areas. However, a common perception held among stakeholders have concluded that PT Vale could display greater care for its social programs, which would incorporate the interests of the community. Utilizing contemporary studies on stakeholder theory, this research provides insights of the mining industry, which have been expressed by vast stakeholders including government and Non-Government Organizations, in relation to aspects to consider before granting mining business licenses in the future. In doing so, it compares social programs between the current mining company (PT Vale) and the past (PT Inco), and determines what practices were favored by interest groups. After the distribution of questionnaires to four mine-affect areas in East Luwu Regency, Indonesia, government elites, community leaders, women figures, indigenous people, fishermen, local contractors and PT Vale employees perceived that in 2023, PT Vale have shown great progress in social, environmental management, and economic conditions compared to past mining companies. However, it founds that locals perceive a major deficiency, which is the low rate of local worker absorptions. This study contributes to the discourse of corporate social responsibility, and reveals community perceptions towards mining companies in affected areas.

Keywords

• Corporate social responsibility
• mining industry
• stakeholder groups
• local communities
• community perspectives
• Komalsingh Rambaree, Department of Social Work and Criminology, University of Gävle, Gävle, Sweden