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ABSTRACT
The studies about patterns and impacts of a company’s corporate social responsibility (CSR) programmes on the local communities have been conducted in a number of developed countries. The similar studies, however, were still rarely conducted in developing countries, particularly in Indonesia. This study aims at discussing the impact of the CSR programmes of a cement company on the lifestyles of a rural community in six villages in Tuban district of East Java Province in Indonesia. The study was conducted from January to September 2015, using qualitative data collection and analysis. This study found that the presence of the cement company has made both positive and negative impacts to the rural community. For the positive impacts, we can see the development of infrastructure that makes the villages become more representative; the emergence of new business opportunities, such as food stalls and boarding houses; and the improvement of the quality of human resources through free health care, education, and religious activities. The supports from the cement company, however, have not been distributed equally among the villagers. In addition, we can also see the following negative impacts: the increase of social tense among the villagers due to the tight competition to obtain work in the cement company; the uneasy relation between the local people and the immigrants who work in the cement company; the decrease in the number of people working in agricultural sectors, as most of them have moved or wish to move to the cement company.
Acknowledgments
This work was supported by the Rector of the Airlangga University under Grant number 519/UN3/2015.
Disclosure statement
No potential conflict of interest was reported by the author.