Track: Industrial Management

Abstract

This study focuses on Corporate Social Responsibility policy implemented by private companies in the Indonesian Port Company Area (PELINDO) and its impact on the surrounding community. The purpose is to assess companies' environmental impact and implement CSR programs and analyse CSR implementation on the community. CSR considers the impact of company activities on the environment and community, including their responsibility to the community. The study is based on the concept of corporate citizenship by Gilmour and Caplan. The theory of policy implementation by George Edward, with indicators of communication, bureaucratic structures, resources and dispositions.  This study conducted in Dumai, Riau. Based on explanatory qualitative research trace and describes facts and makes a comprehensive view and tries to create a complex picture of a problem and issue under study.  The study found that implementation of policy on CSR and Environment is immensely top-down bases. The government was also un-perform in implementing the policy while the regulation in 2012. Both vertically and horizontally, local governments' communication is ineffective due to bureaucratic structures' weaknesses in implementing CSR. Also, the attitude showed that the implementation of CSR policies also seems less responsible.  As a result, the community still affected environmentally by the company's operations. Ideally, the government must be able to be a facilitator between communities and companies. The companies must have consciousness on the urgency of the CSR program in reducing the operational risk.

Keywords: Corporate social responsibility, environment, private companies, policy implementation, business activities, Indonesia port company