Corporate Social Responsibility of Exxon Mobil Cepu Limited in Understanding of Mojodelik and Braboan Society, Bojonegoro-Indonesia

Ifa Khoiria Ningrum, IKN Corporate Social Responsibility of Exxon Mobil Cepu Limited in Understanding of Mojodelik and Braboan Society, Bojonegoro-Indonesia. CORPORATE SOCIAL RESPONSIBILITY OF EXXON MOBIL CEPU LIMITED IN UNDERSTANDING OF MOJODELIK AND BRABOAN SOCIETY, BOJONEGORO-INDONESIA, 9 (31). pp. 517-523. ISSN 1991-8178

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Abstract

CSR in oil and gas mining industries becomes an important issue along with strong attention to extractive industries, both for reasons of environmental protection or other reasons such as human rights and protection of local community’s rights and political economy. Mining industry image is relatively poor in perception of Non Government Office (NGO) environments activists. An important consideration is how companies try to improve their image. One concerned activity of company is CSR. It is very important function in developing corporate social environment so that community development will be in line with company development. CSR is increasingly expected to help address many of most important and urgent issues in world, including climate change, poverty and HIV/AIDs. This phenomenon has become a big change agenda which can provide a sense of hope for justice to improve the life quality and provide opportunities to achieve sustainable development. Phenomena from the CSR implementation indicates that CSR program and stakeholder management strategies in developing countries require consideration of specific needs of each region. Unsuccessful CSR programs in developing countries are due to failure to integrate CSR into development needs of local communities. This study uses phenomenological approach to uncover and understand the meaning behind the phenomena (noumena) of community action around the area of oil and gas exploration for CSR implementation of Exxon mobil Cepu Ltd in relation with engagement, benefits and life quality improvement of local communities. In-depth interviews are conducted to know and understand the meaning of community action. Eight informants were selected based on predetermined criteria. Study results show that implementation of CSR is still conventional program that more emphasis on practical activities at incidental in nature. It is not sustainable program to improve welfare of population in vicinity of oil and gas operations. CSR policy has so far not fully involve the community in planning, implementation, and evaluation of program. There is no clear role of each stakeholder as local governments, oil companies, and community. Stakeholders are not bound in a institutional policies to integrates CSR activities to manage authority principle of each stakeholder.

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