Integrating Corporate Social Responsibility with Stakeholder Role in Small and Medium Enterprise (SME) Projects: The Case of PT Chevron Geothermal Indonesia

Desayu Eka Surya, Wan Amizah Wan Mahmud

Abstract


This study explores the integration of Corporate Social Responsibility (CSR) and Stakeholder Theory in PT Chevron Geothermal Indonesia’s (PT CGI) small and medium enterprise (SME) projects in Desa Samarang and Desa Pasirwangi Garut, Java Island, Indonesia. CSR has become a strategic tool for businesses to promote economic empowerment, environmental sustainability, and social well-being. This study aims to examine how PT CGI’s Super Chicken, Banana Plantation, and Mushroom Cultivation initiatives align with stakeholder interests, ensuring sustainable development. Grounded in Stakeholder Theory, which posits that businesses should address the interests of multiple stakeholders, this research employs a qualitative case study approach, collecting data through semi-structured interviews, document analysis, and direct observations. Sixteen key informants, including PT CGI representatives, local government officials, and SME beneficiaries, participated in the study, conducted between January and July 2016. Findings reveal that stakeholder engagement is critical to CSR success. The Super Chicken project enhanced food security and local income, the Banana Plantation initiative improved agricultural sustainability, and the Mushroom Cultivation project provided economic opportunities, particularly for women and marginalized groups. These initiatives illustrate the purpose of CSR in community-driven development, the value creation achieved through economic growth and skill development, and the interdependence between businesses and communities. The study concludes that CSR is most effective when implemented through stakeholder-driven models, fostering long-term self-sufficiency and shared value creation. This research contributes to CSR and Stakeholder Theory literature by providing insights into how corporations can drive sustainable development through collaborative, purpose-led CSR strategies.

 

Keywords: Corporate social responsibility, stakeholder theory, Small and Medium Enterprise (SME), sustainable development, PT Chevron Geothermal Indonesia.

 

https://doi.org/10.17576/JKMJC-2025-4101-18


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