Corporate Social Responsibility Performance Assessment, Case Study Santos (Madura Offshore) Pty Ltd, Jawa Timur Province.

Abstract

Santos (Madura Offshore) Pty Ltd is a government’s productiong sharing cost (PSC) in oil and gas industry, administratively located in Giligenting District, Sumenep Regency, Jawa Timur Province. The implementation of Corporate Social Responsibility (CSR) of Santos (Madura Offshore) Pty Ltd towards its external stakeholders like energy efficiency for field operations, managing and monitoring the quality of the biophysical environment such as air quality, sea water quality, mangrove planting, and monitoring of aquatic biota (plankton and coral reefs) community structure, making of environmental document (AMDAL, UKL-UPL, RKL/RPL, environmental audits, and PROPER), creating and implementing the Emergency Response Plan (ERP), employing local people, and implementing community development programs (CD ). Some issues related to CSR of Santos (Madura Offshore) Pty Ltd in the Giligenting District are 1) CD program have not significantly reach social and economic issues of local community, 2) emergence of the symptom of declining of fishing ground and destruction of coral reefs during the company's operations, 3) CD fund distribution system take a long time, and 4) limited information of biophysical environmental management by the company for Giligenting community and surrounding areas. Based on that, the purpose of this study are 1) to analyze the performance of CSR Santos (Madura Offshore) Pty Ltd to its external stakeholders wich refers to the oil and gas industry sustainability reporting standards, 2) to analyze the importance and satisfaction level of CSR performance indicators according to external stakeholders of Santos (Madura Offshore) Pty Ltd, and 3) to formulate alternatives policy for the CSR performance sustainability of Santos (Madura Offshore) Pty Ltd. This study used gap analysis, Importance Performance Analysis (IPA), Costumer Satisfaction Index (CSI), and Environmental Risk Assessment as data analysis method. Suitability value of Santos (Madura Offshore) Pty Ltd CSR performance based on standard of sustainability reporting refers to the IPIECIA oil and gas industry guidance on voluntary sustainability repotting for ecological components is 2.63 and scoring guides for the CD program from BPMIGAS for socioeconomic components is 2.27. CSR performance suitability value of Santos (Madura Offshore) Pty Ltd for ecological components is the highest criteria in the range of 1-3 or the CSR has been run in accordance with the standards and meets almost all the requirements in the implementation of CSR based Oil and Gas Industry Sustainability Reporting (IPIECA). CSR performance suitability value of Santos (Madura Offshore) Pty Ltd for socioeconomic components is cathegorized in intermediate assessment criteria in the range of 1-3 or execution of the company's CSR programs are on track according to the criteria of the Community Development Program Assessment in Environmental Oil Company (BPMIGAS). Company should always implement sustainability improvements. Based on Importance Performance Analysis (IPA), Santos (Madura Offshore) Pty Ltd’s CSR performance indicators that need to prioritized for performance improvement according to company's external stakeholders are 1) CD program output indicator lifestyle, income, and community follow up, 2) CD program outcome (impact) indicator communities home physical condition, institutional sustainablity, good governance, initiative, adaptability, autonomy , cooperation, and integration / social harmonization, and 3) sea water quality management for Giligenting community. Meanwhile, the calculation of the external stakeholder satisfaction index (CSI) for the implementation of CSR of Santos (Madura Offshore) Pty Ltd is 1.85. Range assessment of the level of satisfaction are 1 - 1.7 for not satisfied criteria, 1.8 - 2.5 for less satisfied criteria, 2.6 - 3.3 for quite satisfied criteria, 3.4 - 4.1 for satisfied criteria, 4.2 - 5 for very satisfied criteria. The value of external stakeholder satisfaction level of the implementation of Santos (Madura Offshore) Pty Ltd CSR was in the range of less satisfied criteria. Environmental risk assessment analysis to formulate alternativea CSR policy besides in addition to the current management of CSR (Madura Offshore) Pty Ltd, showed that air quality risk management and employment opportunities for people Giligenting require more intensive attention from the company management.