Strategic CSR Based on Local Wisdom for Corporate Sustainability : A Case Study on Sugar Factories in Karesidenan Besuki

Objective – In several last decades, corporate social responsibility is not anymore considered as a company obligation, but more as an opportunity for a company to internalize it in company's business strategy (Bisnis& CSR, 2007). According to strategic CSR concept, it is very important to have CSR programme that are aligned to company's strategy so that it will not only give benefits to company's stakeholders but also give benefits to company itself to promote its sustainability. In 2007, the Government has issued a regulation concerning corporate social responsibility (CSR) in the Corporation Act No. 40/2007. Methodology/Technique – This study is a qualitative study which aim to analyze the CSR activities of sugar factories located in Situbondo based on strategic CSR concept. Findings – There are three sugar factories which are studied and analyzed in this study, i.e.: PG Assembagoes, PG Pandjie, and PG Olean. They have a programme named partnership program and community development. The objective of this program is to help and support sugar cane farmers, cooperatives and small business, and engaged in community development (such as education/training, improving health, public infrastructure/facilities, also environmental conservation and poverty alleviation). Regarding the partnership programs, it is already aligned with the concept of strategic CSR, while the community development program is considered as more general CSR. Novelty – it is important that all the PKBL programs are planned and designed according to strategic CSR concept so that they will benefits the stakeholders of sugar factories and also for the sugar factories themselves. Type of Paper: Empirical