* Corresponding Author
A Creating Shared Value Approach to Sustainability in Extractive Company
https://doi.org/10.22146/ijg.107957 Siska Damayanty(1), Dian Karinawati Imron(2*), Erwinton Simatupang(3), Dedo Kevin Prayoga(4), Santoso Tri Raharjo(5), Risna Resnawaty(6)
(1) Department of Social Welfare, Faculty of Social and Political Science, Universitas Padjadjaran, Bandung, Indonesia
(2) Research Center for Social Welfare, Village, and Connectivity, National Research and Innovation Agency, Jakarta, Indonesia
(3) PT Pertamina EP Pendopo Field, South Sumatra, Indonesia
(4) PT Pertamina EP Pendopo Field, South Sumatra, Indonesia
(5) Research Center for CSR Studies, Social Entrepreneurship, and Community Development, Universitas Padjadjaran, Bandung, Indonesia
(6) Research Center for CSR Studies, Social Entrepreneurship, and Community Development, Universitas Padjadjaran, Bandung, Indonesia
(*) Corresponding Author
Abstract
Transitioning toward a sustainable company is no longer an option but a necessity for the business entity to be agile in responding to sustainability issues. This study examines how an oil and gas company developed a program within the framework of Creating Shared Value (CSV) by bridging the local community and the resources with the company’s value chain. This study was conducted through a case study of the collaborative partnership between PT Pertamina EP Pendopo Field, an oil and gas company, and Sukakarya Village, STL Ulu Terawang Subdistrict, South Sumatra, Indonesia. The results indicate that the company’s initiative lies in developing a CSV prototype program that utilizes areca nuts as a pipe corrosion inhibitor to support the local economy and community empowerment. The company learned to work together with the Kelompok Wanita Tani Melati (Women’s Smallholder Group) and the local community to establish local business clusters. Challenges persist in three key areas: the learning activities related to areca nut extract production, the capacity of local institutions to serve as effective coordinators, and the establishment of cooperative mechanisms between the company and the community. Institutionally, the company has learned to navigate the intersection of sustainability and community-level socioeconomic development by reframing operational challenges concerning local social issues.
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DOI: https://doi.org/10.22146/ijg.107957
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