ROLE OF CORPORATE SOCIAL RESPONSIBILITY IN REDUCING FARMERS POVERTY: A CASE STUDY IN EASTERN KALIMANTAN, INDONESIA Imam Suhadi (a*), Irham (b), Jangkung Handoyo Mulyo (b), Jamhari (b)
a. Department of Agribusiness, College of Agriculture, East Kutai, Indonesia
b. Department of Agribusiness, Faculty of Agriculture, Universitas Gadjah Mada, Indonesia
Abstract
The implementation of CSR in Indonesia is regulated in the Republic of Indonesia Law Number 40 of 2007. Based on these regulations, the implementation of CSR is in line with the goal of sustainable agricultural development, namely improving the welfare of the rural population. To achieve these development goals, cross-sectoral coordination and collaboration is required- the local government, the community, the private sector, and other stakeholders. Among the sustainable development goals that can be collaborated with CSR is poverty reduction in the agricultural sector. There have been many studies on CSR disclosure in the company^s perspective, but an overview of the role of CSR implementation in agriculture in reducing farmer poverty is still limited. This study aims to (1) determine the poverty level of farmers before receiving CSR assistance, (2) estimate the poverty level of farmers after receiving CSR assistance, and (3) to determine the impact of CSR assistance on reducing farmers^ poverty levels. The poverty measurement method is based on the poverty criteria of the Central Bureau of Statistics, the Headcount Index, Poverty Gap Index, and Poverty Severity Index. Meanwhile, to find out the impact of CSR assistance, it is seen through the difference in poverty levels before and after receiving CSR assistance and is tested statistically.
Keywords: Corporate Social Responsibbility, Farmers Poverty, Headcount Index, Poverty Gap Index, Poverty Severity Index
