The Role of SDG-Oriented CSR in Strengthening Community Welfare in Bengkalis Regency

Authors

  • Rinto Universiti Islam Malaysia
  • Emerita Siti Naaishah Hambali Universiti Islam Malaysia
  • Hainnur Aqma Rahim Universiti Teknologi MARA Malaysia

DOI:

https://doi.org/10.59890/ijma.v4i1.302

Keywords:

Corporate Social Responsibilit, Sustainable Development Goals, MICMAC Analysis, Stakeholder Governance, Oil and Gas Industry

Abstract

Corporate Social Responsibility (CSR) has become a central governance instrument for mitigating the social and environmental impacts of extractive industries while promoting sustainable development. This study examines the role and effectiveness of CSR programs implemented by Pertamina Hulu Rokan (PHR) in Bengkalis Regency, a strategic coastal and resource-dependent region facing persistent socio-economic and environmental challenges. Using a MICMAC (Matrix of Cross-Impact Multiplications Applied to Classification) approach, this study analyzes theF structural dynamics of stakeholder influence and dependence within the CSR system. These results underscore that CSR outcomes are relational and system-dependent rather than programmatic.

This study contributes theoretically by integrating stakeholder-based CSR governance with the SDG framework using a systemic analytical approach. Practically, it offers policy-relevant insights for improving CSR coordination, impact measurement, and long-term sustainability in resource-rich regions. The proposed conceptual model provides a transferable framework for aligning corporate responsibility initiatives with local development priorities and sustainable development objectives.

References

Adnan, R. S., & Somantri, G. R. (2022). Social conflict among mining company and community. Indonesian Journal of Religion and Society, 4(1), 28-40. https://doi.org/10.36256/ijrs.v4i1.246

Amu, H., Aboagye, R. G., Dowou, R. K., Kongnyuy, E. J., Adoma, P. O., Memiah, P., … & Bain, L. E. (2022). Towards achievement of sustainable development goal 3: multilevel analyses of demographic and health survey data on health insurance coverage and maternal healthcare utilisation in sub-saharan africa. International Health, 15(2), 134-149. https://doi.org/10.1093/inthealth/ihac017

Al Lawati, H., & Hussainey, K. (2022). Does Sustainable Development Goals Disclosure Affect Corporate Financial Performance? Sustainability, 14(13), Article 13. https://doi.org/10.3390/su14137815

Almeida, C. M. L. d., Bergqvist, E., Thacker, S., & Nerini, F. F. (2021). Actions to align energy projects with the sustainable development goals. Discover Sustainability, 2(16), 1-11. https://doi.org/10.1007/s43621-021-00020-3

Badan Pusat Statistik (BPS) Kabupaten Bengkalis. (2023). Kabupaten Bengkalis Dalam Angka. https://bengkaliskab.bps.go.id/publication/2023/02/28/47

Badan Perencanaan dan Pembangunan Daerah (Bappeda) Kabupaten Bengkalis. (2023). Rencana Kerja Kerajaan tempatan (RKPD) Kabupaten Bengkalis Tahun 2024.

Baruah, L., & Panda, N. M. (2021). The Impact of Corporate Social Responsibility on Reputation: A Study on Top 100 Companies Operating in India. Metamorphosis, 20(2), 99–105. https://doi.org/10.1177/09726225211051866

Bebbington, A., & Bury, J. (2009). Institutional challenges for mining and sustainability in peru. Proceedings of the National Academy of Sciences, 106(41), 17296-17301. https://doi.org/10.1073/pnas.0906057106

Beyne, J. (2020). Designing and implementing sustainability: an integrative framework for implementing the sustainable development goals. European Journal of Sustainable Development, 9(3), 1-12. https://doi.org/10.14207/ejsd.2020.v9n3p1

Bhuiyan, F., Baird, K., & Munir, R. (2020). The association between organisational culture, CSR practices and organisational performance in an emerging economy. Meditari Accountancy Research, 28(6), 977–1011. https://doi.org/10.1108/MEDAR-09-2019-0574

Boğan, E., & Dedeoğlu, B. B. (2020). Hotel employees' corporate social responsibility perception and organizational citizenship behavior: perceived external prestige and pride in organization as serial mediators. Corporate Social Responsibility and Environmental Management, 27(5), 2342-2353. https://doi.org/10.1002/csr.1996

Cahyono, Arif Dwi. (2010). History of Oil & Gas Exploration: It Stars From A Cattle. Majalah Tambang Online.

Camara, I., De-yi, J., Barry, O., & Caille, F. (2021). Bauxite mining conflicts in guinea: causes identification, analysis, and countermeasures. International Journal of Mineral Processing and Extractive Metallurgy, 6(3), 53. https://doi.org/10.11648/j.ijmpem.20210603.13

Čadež, S., & Galant, A. (2023). The role of stakeholder heterogeneity in the corporate social responsibility – corporate financial performance relationship. Drustvena Istrazivanja, 32(1), 115-136. https://doi.org/10.5559/di.32.1.06

Carroll, A. B. (1999). Corporate Social Responsibility: Evolution of a Definitional Construct. Business & Society, 38(3), 268–295. https://doi.org/10.1177/000765039903800303

Chandrakumar, C., & McLaren, S. (2018). Exploring the linkages between the environmental sustainable development goals and planetary boundaries using the DPSIR impact pathway framework. In Designing Sustainable Technologies, Products and Policies (pp. 413-423). https://doi.org/10.1007/978-3-319-66981-6_46

Chutcheva, Y. V., Kuprianova, L. M., Seregina, A. A., & Kukushkin, S. N. (2022). Environmental management of companies in the oil and gas markets based on AI for sustainable development: An international review. Frontiers in Environmental Science, 10. https://doi.org/10.3389/fenvs.2022.952102

Cowan, K., & Guzman, F. (2020). How CSR reputation, sustainability signals, and country-of-origin sustainability reputation contribute to corporate brand performance: An exploratory study. Journal of Business Research, 117, 683–693. https://doi.org/10.1016/j.jbusres.2018.11.017

Dahlsrud, A. (2008). How corporate social responsibility is defined: An analysis of 37 definitions. Corporate Social Responsibility and Environmental Management, 15(1), 1–13. https://doi.org/10.1002/csr.132

Dagvadorj, L., Byamba, B., & Ishikawa, M. (2018). Effect of local community’s environmental perception on trust in a mining company: a case study in mongolia. Sustainability, 10(3), 614. https://doi.org/10.3390/su10030614

Darwis, R. S., Resnawaty, R., & Hassanah, D. (2019). Peran Pemerintah dalam Kolaborasi Stakeholders pada Pelaksanaan Program Corporate Social Responsibility (CSR). https://doi.org/10.24198/JPPM.V6I1.21482

Dai, T., & Tang, C. S. (2022). Frontiers in service science: integrating ESG measures and supply chain management: research opportunities in the postpandemic era. Service Science, 14(1), 1-12. https://doi.org/10.1287/serv.2021.0295

Fadillah. (2022). Optimalisasi Pendayagunaan Zakat Produktif dalam Mewujudkan Program Sustainable Development Goals (SDGs) guna Meningkatkan Kesejahteraan Mustahik (Studi Kasus Lembaga Program Baznas Zcd Desa Wlahar Wetan Kecamatan Kalibagor Kabupaten Banyumas). Jurnal Manajemen Zakat dan Wakaf, 1(2),125-134.

Francis, N. N., & Pegg, S. (2020). Socially distanced school-based nutrition program under covid 19 in the rural niger delta. The Extractive Industries and Society, 7(2), 576-579. https://doi.org/10.1016/j.exis.2020.04.007

Ginting, D. Y. br, Ginting, R. br, & Sembiring, D. J. M. (2020). Sistem Pendukung Keputusan dengan Menggunakan Metode Analytic Hierarchy Process (AHP). Yogyakarta: Penerbit Andi.

Godet, M., & Durance, P. (2011). Strategic foresight for companies and territories. Paris: Dunod.

Gollier, C., & Pouget, S. (2022). Investment Strategies and Corporate Behaviour with Socially Responsible Investors: A Theory of Active Ownership. Economica, 89(356), 997–1023. https://doi.org/10.1111/ecca.12436

Imron, M. A. (2021). Economy in times of crisis: an economic analysis of the energy policy during covid-19 pandemic. International Journal of Management Research and Social Science, 8(2). https://doi.org/10.30726/ijmrss/v8.i2.2021.82011

Indriastuti, S. (2016). The impacts of decentralization policy in the mining sector on human security of local communities in indonesia. International Journal of Sustainable Future for Human Security, 4(1), 50-60. https://doi.org/10.24910/jsustain/4.1/5060

Irwan, Muhammad Riduansyah Syafari, & Ahmad Yunani. (2021). Corporate Social Responsibility (CSR) Management PT. Borneo Indobara (BIB) in Community Empowerment in The Regency of Tanah Bumbu. International Journal of Political, Law, and Social Science, 2(3), 74-88.

Ishartono, & Raharjo. (2016). Sustainable Development Goals dan Pengentasan Kemiskinan. Share: Social Work Journal, 6(2), 159-167.

Kieu, T.-K., Nguyen, C.-H., & Wu, S.-H. (2022). The impact of mandatory CSR disclosure on firm efficiency in an emerging country. Journal of Business Economics and Management, 23(6), Article 6. https://doi.org/10.3846/jbem.2022.18201

Koolwala, N., & Khandelwal, S. (2019). Corporate Social Responsibility (CSR) implementation in Oil & Gas Industry: Challenges and Solutions.

Kusuma, J. P., & Ginting, A. L. (2021). Strategi Kerajaan tempatan Kabupaten Kolaka dalam Pengelolaan Program Corporate Social Responsibility (CSR). Scientific Journal of Reflection: Economic, Accounting, Management and Business, 4(1), 81-90.

Kusumawati, R., Asyilah, N. H., & Bukhori, I. (2022). Corporate Social Responsibility’s (CSR) Impact on Financial Performance: Moderating Effects of Earnings Management and Leverage. Jurnal Manajemen Bisnis, 13(2), 223–234. https://doi.org/10.18196/mb.v13i2.12888

Kwarto, F., Nurafiah, N., Suharman, H., & Dahlan, M. (2024). The potential bias for sustainability reporting of global upstream oil and gas companies: A systematic literature review of the evidence. Management Review Quarterly, 74(1), 35–64. https://doi.org/10.1007/s11301-022-00292-7

Licandro, O., Vázquez-Burguete, J. L., Ortigueira, L., & Correa, P. (2023). Definition of Corporate Social Responsibility as a Management Philosophy Oriented towards the Management of Externalities: Proposal and Argumentation. Sustainability, 15(13), Article 13. https://doi.org/10.3390/su151310722

Lopez, B. (2020). Connecting business and sustainable development goals in Spain. Marketing Intelligence & Planning, 38(5), 573–585. https://doi.org/10.1108/MIP-08-2018-0367

Lundberg, E. (2017). The importance of tourism impacts for different local resident groups: A case study of a Swedish seaside destination. Journal of Destination Marketing and Management, 6(1), 46–55.

Maulyansyah, R., Wijaya, D. W., Sofia, H. F., & Syifani, A. N. (2023). The Role of Stakeholders in the Sustainability of PT Pertamina Patra Niaga Fuel Terminal Rewulu’s CSR Program (Study on Independent Women’s Group “Berlian Progo”). Journal of Environmental and Sustainability Studies. https://doi.org/10.55381/envibility.v1i2.182

Manes-Rossi, F., & Nicolo’, G. (2022). Exploring sustainable development goals reporting practices: From symbolic to substantive approaches—Evidence from the energy sector. Corporate Social Responsibility and Environmental Management, 29(5), 1799–1815. https://doi.org/10.1002/csr.2328

Marco-Lajara, B., Zaragoza-Sáez, P., Martínez Falcó, J., & Millan-Tudela, L. A. (2022). Corporate Social Responsibility: A Narrative Literature Review (corporate-social-responsibility) [Chapter]. IGI Global. https://doi.org/10.4018/978-1-6684-6750-3.CH002

McWilliams, A., & Siegel, D. (2001). Corporate Social Responsibility: A Theory of the Firm Perspective. Academy of Management Review, 26(1), 117–127. https://doi.org/10.2307/259398

Messakh, T. A., Rustiadi, E., Putri, E. I. K., & Fauzi, A. (2021). Dampak Sektor Transportasi Terhadap Perekonomian di Timor Barat: Suatu Analisis Model Input-Output (IO). Jurnal Wilayah Dan Lingkungan, 9(2), 127-141.

Ministry of ESDM. (2021). Siaran pers: Sektor hulu minyak dan gas bumi berperan strategis dalam pembangunan nasional dan daerah serta menghadapi tantangan lingkungan dan sosial (Siaran Pers No. 364.Pers/04/SJI/2021). Jakarta: Kementerian Energi dan Sumber Daya Mineral RI.

Morales, O., Kleit, A. N., & Rees, G. H. (2018). Mining and community relations in peru: can agreement be reached?. Academia Revista Latinoamericana De Administración, 31(3), 605-624. https://doi.org/10.1108/ARLA-04-2016-0092

Mory, L., Wirtz, B. W., & Göttel, V. (2016). Corporate social responsibility strategies and their impact on employees’ commitment. Journal of Strategy and Management, 9(2), 172–201. https://doi.org/10.1108/JSMA-12-2014-0097

Mutti, D., Yakovleva, N., Vazquez-Brust, D., & Di Marco, M. H. (2012). Corporate social responsibility in the mining industry: Perspectives from stakeholder groups in Argentina. Resources Policy, 37(2), 212–222. https://doi.org/10.1016/j.resourpol.2011.05.001

Mzembe, A. N., & Meaton, J. (2014). Driving Corporate Social Responsibility in the Malawian Mining Industry: A Stakeholder Perspective. Corporate Social Responsibility and Environmental Management, 21(4), 189–201. https://doi.org/10.1002/csr.1319

Nriagu, J. O., Udofia, E. A., Ekong, I. E., & Ebuk, G. (2016). Health risks associated with oil pollution in the niger delta, nigeria. International Journal of Environmental Research and Public Health, 13(3), 346. https://doi.org/10.3390/ijerph13030346

Nayenggita, G. B., Raharjo, S. T., & Resnawaty, R. (2019). Praktik Corporate Social Responsibility (CSR) di Indonesia. Jurnal Pekerjaan Sosial, 2(1), 61-66.

Nguyen, H. H., Hoang, T. G., & Luu, H. N. (2019). Corporate social responsibility in vietnam: opportunities and innovation experienced by multinational corporation subsidiaries. Social Responsibility Journal, 16(6), 771-792. https://doi.org/10.1108/SRJ-02-2019-0082

Nugroho, H. C., et al. (2014). Koordinasi Pelaksanaan Program Pengembangan Kawasan Agropolitan di Kabupaten Nganjuk. Jurnal Pembangunan dan Lestari Alam, 5(1), 12-22.

Nurdin, N. H., Ismail, I., Zainal, N. H., & Suaib, M. R. (2024). Perkongsian strategis dalam implementasi CSR di kota makassar: peran aktor utama. Journal Publicuho. https://doi.org/10.35817/publicuho.v7i4.557

Ohta, R., Yata, A., & Sano, C. (2022). Students’ learning on sustainable development goals through interactive lectures and fieldwork in rural communities: grounded theory approach. Sustainability, 14(14), 8678. https://doi.org/10.3390/su14148678

Ogwang, T., Vanclay, F., & Assem, A. v. d. (2019). Rent-seeking practices, local resource curse, and social conflict in uganda’s emerging oil economy. Land, 8(4), 53. https://doi.org/10.3390/land8040053

Pakkan, S., Sudhakar, C., Tripathi, S., & Rao, M. (2021). A correlation study of sustainable development goal (SDG) interactions. https://doi.org/10.21203/rs.3.rs-779385/v1

Pedoman Tata Kerja SKK Migas Nombor: PTK-037/SKKMA0000/2018/S0 TENTANG PLAN OF DEVELOPMENT (POD) Revisi-02 JAKARTA Tahun 2018 tentang Plan Of Development (POD). https://studylib.net/doc/25722786/ptk-037-skk-migas-plan-of-development--pod--2018

Peraturan Menteri BUMN Nomor PER-03/MBU/12/2016 tentang Perubahan atas Peraturan Menteri Badan Usaha Milik Negara Nomor Per-09/MBU/07/2015 tentang Program Perkongsian dan Program Bina Lingkungan Badan Usaha Milik Negara. https://peraturan.bpk.go.id/Home/Details/146591/permen-bumn-no-per-03mbu122016-tahun-2016

Pizzi, S., Rosati, F., & Venturelli, A. (2021). The determinants of business contribution to the 2030 Agenda: Introducing the SDG Reporting Score. Business Strategy and the Environment, 30(1), 404–421. https://doi.org/10.1002/bse.2628

Prasetio, J. E., Bintarto, B., Susanto, A. A., Rahmanda, G. A., Rochman, A. S., Gresik, U., & Kalbuana, N. (2021). Corporate Social Responsibility Community Development And Empowerment Program In Indonesia. 24(1).

Pertamina Hulu Rokan [PHR]. (2021). Annual Report 2021. https://phr.pertamina.com/Content/Images/Tentang-kami/ProfilPHR/Laporan%20Tahunan%20PHR%202021%20Website.pdf

Puspita, D., & Mubarak, N. (2021). Analysis of Coastline Changes in Rupat Island Using Remote Sensing Data and Geographic Information Systems. Asian Journal of Aquatic Sciences, 4(3), 236-246.

Purwanti, S., Abdoellah, O. S., Asdak, C., & Cahyandito, M. F. (2022). Effectiveness of corporate social responsibility performance in oil and gas companies in north kalimantan. International Journal of Health Sciences, 47461-47471. https://doi.org/10.53730/ijhs.v6ns7.13257

Rosyada, T. A., Najah, R. H., Amalia, R., Kusumasari, I. R., & Hidayat, R. (2024). The Role of Stakeholder Involvement in the Decision Making Process of Corporate Social Responsibility. Jurnal Akuntansi, Manajemen, Dan Perencanaan Kebijakan. https://doi.org/10.47134/jampk.v2i2.530

Santos, M. J., & Silva Bastos, C. (2020). The adoption of sustainable development goals by large Portuguese companies. Social Responsibility Journal, 17(8), 1079–1099. https://doi.org/10.1108/SRJ-07-2018-0184

Sarojanamma, M., & Ganesh, M. K. (2023). Role of Corporate Social Responsibility in Social and Economic Development in India. Proceeding International Conference on Science and Engineering, 11(1), Article 1. https://doi.org/10.52783/cienceng.v11i1.195

Silva, S. (2021). Corporate contributions to the Sustainable Development Goals: An empirical analysis informed by legitimacy theory. Journal of Cleaner Production, 292, 125962. https://doi.org/10.1016/j.jclepro.2021.125962

Sinha, G. (2022). Corporate Social Responsibility- A Positive Obligation on the Companies to Fulfill their Responsibility towards Country. Journal of Legal Studies & Research, 8(3), 177–197. https://doi.org/10.55662/JLSR.2022.8304

Siyal, S., Ahmad, R., Riaz, S., Xin, C., & Fangcheng, T. (2022). The Impact of Corporate Culture on Corporate Social Responsibility: Role of Reputation and Corporate Sustainability. Sustainability, 14(16), Article 16. https://doi.org/10.3390/su141610105

Słomka-Gołębiowska, A., De Masi, S., Zambelli, S., & Paci, A. (2023). Towards higher sustainability: If you want something done, ask a chairwoman. Finance Research Letters, 58, 104308. https://doi.org/10.1016/j.frl.2023.104308

Tian, H. (2023). Does consumer social responsibility augment corporate social responsibility: A reciprocal analysis of external stakeholder from stakeholder theory perspective. Corporate Social Responsibility and Environmental Management, 30(2), 968–978. https://doi.org/10.1002/csr.2400

Tilt, C. A. (2016). Corporate social responsibility research: The importance of context. International Journal of Corporate Social Responsibility, 1(1), 1-9.

Torrico, B. H., Frank, B., & Tavera, C. A. (2018). Corporate social responsibility in Bolivia: meanings and consequences. International Journal of Corporate Social Responsibility, 3(1), 7.

Tysiachniouk, M., Petrov, A. N., Kuklina, V., & Krasnoshtanova, N. (2018). Between soviet legacy and corporate social responsibility: emerging benefit sharing frameworks in the irkutsk oil region, russia. Sustainability, 10(9), 3334. https://doi.org/10.3390/su10093334

Uduji, J., & Okolo-Obasi, E. N. (2019). Corporate Social Responsibility in Nigeria and Rural Youths in Sustainable Traditional Industries Livelihood in Oil Producing Communities (SSRN Scholarly Paper 3402032). https://doi.org/10.2139/ssrn.3402032

United Nations. (2015). Transforming our World: The 2030 Agenda for Sustainable Development: Sustainable Development Knowledge Platform. https://sustainabledevelopment.un.org/post2015

Van der Waal, J. W. H., & Thijssens, T. (2020). Corporate involvement in Sustainable Development Goals: Exploring the territory. Journal of Cleaner Production, 252, 119625. https://doi.org/10.1016/j.jclepro.2019.119625

Van Tulder, R., Rodrigues, S. B., Mirza, H., & Sexsmith, K. (2021). The UN’s Sustainable Development Goals: Can multinational enterprises lead the Decade of Action? Journal of International Business Policy, 4(1), 1–21. https://doi.org/10.1057/s42214-020-00095-1

Van Zanten, J. A., & van Tulder, R. (2021). Improving companies’ impacts on sustainable development: A nexus approach to the SDG. Business Strategy and the Environment, 30(8), 3703–3720. https://doi.org/10.1002/bse.2835

Velden, M. v. d. (2018). Digitalisation and the UN Sustainable Development Goals: what role for design. Interaction Design and Architecture(s), (37), 160-174. https://doi.org/10.55612/s-5002-037-008

Wackernagel, M., Hanscom, L., & Lin, D. (2017). Making the sustainable development goals consistent with sustainability. Frontiers in Energy Research, 5. https://doi.org/10.3389/fenrg.2017.00018

Warhurst, A., & Mitchell, P. (2000). Corporate social responsibility and the case of Summitville mine. Resources Policy, 26(2), 91–102. https://doi.org/10.1016/S0301-4207(00)00019-2

Wang, L., Zhang, P., Ma, L., Cong, X., & Skibniewski, M. J. (2020). Developing a corporate social responsibility framework for sustainable construction using partial least squares structural equation modeling. Technological and Economic Development of Economy, 26(1), 186-212. https://doi.org/10.3846/tede.2020.11263

Weerasinghe, T., Gunarathne, N., & Samudrage, D. N. (2024). Sustainable development goals disclosures: Evidence from Sri Lanka. Corporate Social Responsibility and Environmental Management, 31(2), 993–1010. https://doi.org/10.1002/csr.2614

Williams, S., & Murphy, D. F. (2023). Learning from Each Other: UK Global Businesses, SMEs, CSR and the Sustainable Development Goals (SDG). Sustainability, 15(5), Article 5. https://doi.org/10.3390/su15054151

Widhagdha, M. F., & Hidayat, R. (2020). Pemberdayaan Masyarakat sebagai Strategi Resolusi Konflik Sosial. https://doi.org/10.37064/JPM.V8I1.7139

Xu, Y., Wang, L., Xiong, Y., Wang, M., & Xie, X. (2023). Does digital transformation foster corporate social responsibility? Evidence from Chinese mining industry. Journal of Environmental Management, 344, 118646. https://doi.org/10.1016/j.jenvman.2023.118646

Yasir, N., & Nova Yohana. (2021). Corporate Communications in Contribution to Addressing Environmental Problems: Case Study of an Indonesian State Oil Company. Information & Media, 91, 152-174.

Yuniarti, D., & Prakoso, C. T. (2018). Pelaksanaan corporate social responsibility (CSR) dan sinergi perusahaan–pemerintah daerah dalam pembangunan berkelanjutan di Kota Samarinda. Jurnal Administrative Reform, 6(4), 221–238.

Published

2026-02-11