Sustainable Business of Indonesian Palm Oil Companies through Grand Design Corporate Social Responsibility Programs

Abstract

This study aims to focus on the design of corporate social responsibility programs for Indonesian palm oil
companies. The Indonesian government has already imposed mandatory actions under the Indonesian
Sustainable Palm Oil system or ISPO whereby Corporate Social Responsibility is a legal aspect of
obtaining an ISPO certificate. To identify relevant Corporate Social Responsibility (CSR) programs,
stakeholder theory approach was used. In-depth interviews were conducted with stakeholders of 10 palm
oil companies and field observations were made in the plantations where the research was afocused.
SWOT and PESTEL analyses were used to reaffirm which CSR programs are suitable to the industrial
environment of palm oil companies. The research found that CSR programs for palm oil companies
included those aimed at the economic empowerment of local people, educational assistance and health
care services. This research provides a framework for palm oil managers to craft CSR programs for
stakeholders of palm oil companies so as to ensure long-term business sustainability