Increase Involvement of Related Parties

Oct 13, 2025 by vinooalluri.com 30 views

Practices of Corporate Social Responsibility and Empowerment of Small and Medium Enterprises: A Case Study of PT Perkebunan Nusantara IV Adolina Kebun Business Unit

Introduction

In today's business landscape, Corporate Social Responsibility (CSR) has become a crucial aspect of a company's operations. CSR refers to a company's commitment to operating in a socially responsible manner, taking into account the impact of its operations on the environment, employees, customers, and the community at large. One of the key areas of focus for CSR is the empowerment of Small and Medium Enterprises (SMEs), which are often the backbone of a country's economy. This article presents a case study of PT Perkebunan Nusantara IV Adolina Kebun Business Unit, a company engaged in the plantation sector, and its efforts to implement CSR practices and empower SMEs through the Partnership and Environmental Development Program.

Background

PT Perkebunan Nusantara IV of the Adolina Kebun Business Unit is a state-owned enterprise (BUMN) that operates in the plantation sector. The company has committed to implementing CSR practices and empowering SMEs through the Partnership and Environmental Development Program. This program aims to promote sustainable development and improve the quality of life of the community in the area where the company operates. The program also seeks to create a mutually beneficial relationship between the company and SMEs, with the goal of promoting economic growth and development in the region.

Research Methods

The research method used in this study is a descriptive method with a qualitative approach. Researchers conducted unstructured and in-depth interviews, direct observations, and literature studies. Through this approach, researchers can explore in-depth information about the influence of CSR programs on SMEs who are partners assisted by PTPN IV.

Research Findings

The results of this study showed that the implementation of PTPN IV CSR after the legislation regulations had a positive impact on SMEs, especially in the following aspects:

Capital Aspects

There is an increase in the smooth provision of credit and loan returns for fostered partners. This shows that access to capital for SMEs is increasingly open, allowing them to develop businesses better.

Management Aspects

Fostered Partners are given the opportunity to take part in the training program (training) which includes practical management, assistance, and monitoring. This program not only increases the managerial capabilities of SMEs, but also increases their competitiveness in the market.

Production Aspects

With training and support, the quality of production of fostered partners. In addition, the principle of mutual benefit between PTPN IV and UKM is increasingly strengthened, creating a mutually supportive business relationship.

Market Aspects

They also include partners in local and international exhibitions, thus opening up broader market opportunities for their products. In addition, the products produced can be sold at prices in accordance with market conditions.

Challenges Faced

Although PTPN IV has shown progress in the implementation of CSR, there are still challenges that need to be faced. The CSR practice of the company is still impressed in less involving related parties, especially shareholders and stakeholders. There is an urgent need to increase their involvement in the CSR program so that business orientation becomes more focused on mutually beneficial cooperation.

Conclusion

From the results of this study, it can be concluded that the implementation of CSR by PTPN IV of the Adolina Kebun Business Unit has had a positive impact on the empowerment of SMEs. However, so that this program is not only a process of imaging, a more serious approach is needed in involving all related parties. Efforts to empower the community through CSR must be directed to create a truly educative and empowering program, so that the continuity of CSR can run effectively and efficiently. Thus, a strong synergy can be created between PTPN IV and SMEs, encouraging sustainable economic growth in the area.

Recommendations

Based on the findings of this study, the following recommendations are made:

Increase Involvement of Related Parties: PTPN IV should increase the involvement of related parties, especially shareholders and stakeholders, in the CSR program. This will ensure that the program is more focused on mutually beneficial cooperation.
Improve Training and Support: PTPN IV should improve the training and support provided to SMEs, including practical management, assistance, and monitoring.
Increase Access to Capital: PTPN IV should increase access to capital for SMEs, allowing them to develop businesses better.
Promote Sustainable Development: PTPN IV should promote sustainable development and improve the quality of life of the community in the area where the company operates.
Create a Strong Synergy: PTPN IV and SMEs should create a strong synergy, encouraging sustainable economic growth in the area.

Limitations of the Study

This study has several limitations, including:

Limited Scope: The study only focuses on the CSR practices and empowerment of SMEs in the Adolina Kebun Business Unit of PT Perkebunan Nusantara IV.
Qualitative Approach: The study uses a qualitative approach, which may limit the generalizability of the findings.
Limited Data: The study relies on secondary data, which may be limited in scope and accuracy.

Future Research Directions

Future research should focus on the following areas:

CSR Practices in Other Industries: Research should be conducted on CSR practices in other industries, including the manufacturing, service, and agricultural sectors.
Empowerment of SMEs: Research should focus on the empowerment of SMEs, including access to capital, training, and support.
Sustainable Development: Research should focus on sustainable development and its impact on the community and the environment.

Conclusion

In conclusion, this study has shown that the implementation of CSR by PTPN IV of the Adolina Kebun Business Unit has had a positive impact on the empowerment of SMEs. However, there are still challenges that need to be faced, including increasing the involvement of related parties and improving training and support. Efforts to empower the community through CSR must be directed to create a truly educative and empowering program, so that the continuity of CSR can run effectively and efficiently.
Q&A: Practices of Corporate Social Responsibility and Empowerment of Small and Medium Enterprises

Introduction

In our previous article, we discussed the practices of Corporate Social Responsibility (CSR) and empowerment of Small and Medium Enterprises (SMEs) by PT Perkebunan Nusantara IV Adolina Kebun Business Unit. In this article, we will answer some of the frequently asked questions (FAQs) related to CSR and SME empowerment.

Q: What is Corporate Social Responsibility (CSR)?

A: CSR refers to a company's commitment to operating in a socially responsible manner, taking into account the impact of its operations on the environment, employees, customers, and the community at large.

Q: Why is CSR important for businesses?

A: CSR is important for businesses because it helps to build trust and credibility with stakeholders, including customers, employees, and the community. It also helps to improve the company's reputation and brand image.

Q: What are the benefits of CSR for SMEs?

A: The benefits of CSR for SMEs include increased access to capital, improved management capabilities, and increased competitiveness in the market. CSR also helps to promote sustainable development and improve the quality of life of the community.

Q: How can SMEs benefit from CSR programs?

A: SMEs can benefit from CSR programs by accessing training and support, including practical management, assistance, and monitoring. They can also benefit from increased access to capital and improved market opportunities.

Q: What are the challenges faced by SMEs in implementing CSR?

A: The challenges faced by SMEs in implementing CSR include limited resources, lack of expertise, and limited access to capital. SMEs may also face challenges in measuring the impact of their CSR efforts.

Q: How can businesses measure the impact of their CSR efforts?

A: Businesses can measure the impact of their CSR efforts by tracking key performance indicators (KPIs), such as the number of jobs created, the amount of capital invested, and the number of communities impacted.

Q: What is the role of government in promoting CSR and SME empowerment?

A: The government plays a crucial role in promoting CSR and SME empowerment by providing incentives, such as tax breaks and subsidies, to businesses that implement CSR programs. The government can also provide training and support to SMEs to help them develop their CSR capabilities.

Q: How can individuals contribute to CSR and SME empowerment?

A: Individuals can contribute to CSR and SME empowerment by supporting businesses that implement CSR programs, volunteering their time and skills to help SMEs develop their CSR capabilities, and advocating for policies that promote CSR and SME empowerment.

Q: What are the future directions for CSR and SME empowerment?

A: The future directions for CSR and SME empowerment include increasing the involvement of related parties, improving training and support, and promoting sustainable development. There is also a need to create a strong synergy between businesses and SMEs to encourage sustainable economic growth.

Conclusion

In conclusion, CSR and SME empowerment are critical components of a company's operations. By implementing CSR programs, businesses can improve their reputation and brand image, while also promoting sustainable development and improving the quality of life of the community. SMEs can benefit from CSR programs by accessing training and support, including practical management, assistance, and monitoring. We hope that this Q&A article has provided valuable insights into the practices of CSR and SME empowerment.