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Strategy to Improve the Performance of Corporate Social Responsibility Development Program in Bontang LNG Plant

Okky William Lukman, Leo Aldianto


Abstract. As a world-class energy company, Badak LNG continuosly develops the Corporate Social Responsibility (CSR) program in order to maximize the company’s role among the stakeholders. Badak LNG has known as the oil and gas company which puts high attention in developing the CSR or community development program in line with its main business activities. Currently, Badak LNG has 23 CSR programs which consists of 44 CSR groups with the total CSR communities of 847 people. Due to inadequate organization to support CSR programs, Badak LNG only routinely monitor the CSR flagship programs in each year. As a consequence, the community satisfaction index of the CSR team is low in term of the discipline criteria and speed of service. The aim of this research is to develop new effective strategy in developing CSR programs in Badak LNG. The evaluation is perfomed by using High Performance Work System (HPWS) concept. This concept is used to align the organization and its environment. The concept is the right combination of people, technology, and organizational structure to fully utilize the resources and opportunities in achieving the organizational goals. Based on the analysis using HPWS concept, it is found that the new strategy of CSR development program should be created due to the problems of ineffective current CSR organization, unsuitable leadership style in the CSR organization, and no utilization of technology in CSR monitoring system. In order to solve these problems, the strategies proposed are to redesign CSR organization, change the leadership style to the appropriate leadership style, and develop integrated IT system for CSR program monitoring.

Keywords: CSR, leadership, organization, strategy


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