Corporate social responsibility for regional sustainability after mine closure: a case study of mining company in Indonesia

Creating a soft-landing path for mine closure is key to the sustainability of the mining region. In this research, we presents a case of mine closure in Soroako, a small mining town in the north-east of South Sulawesi province, in the center of Sulawesi Island in Indonesia. Especially we investigates corporate social responsibility (CSR) programs of a mining company, PT Vale Indonesia Tbk (PTVI), towards a soft-landing of mine closure in this region. The data of the CSR programs are gathered from in-depth interviews, the annual reports and managerial reports. Furthermore we presents an integrated view of CSR to close mining in a sustainable manner. We then evaluate CSR strategies of the company and its performance from this viewpoint. Based on these steps, the way to improve the CSR mine closure scenario for enhancing the regional sustainability is discussed and recommended.


Background
Over the past 48 years, PT Vale Indonesia Tbk (PTVI) has been operating under the Contract of Work (CoW) agreement with the government of Indonesia to open pit nickel mines and a processing plant facilities near Sorowako on the island of Sulawesi. As the world's leading nickel producer, PTVI has played a central role in regional's economy through revenues, employment, business empowerment and social development programs. In the community life, the presence of PTVI has dominated many aspects of the community's socioeconomic activities. There are most of soroako's residents working as employees for the mining company PTVI, and others become contractors, traders, civil servants, etc. Given the circumstance, the number of sorowako' population has been increasing dramatically and uncontrolled. Sorowako in the past was just a small and isolated settlement where occupied by less than one thousand people, but nowadays the number of population has reached around 24,738 people [1]. This stemmed from regional migration and the growing local population. There are many issues that has been created such as poverty, unemployment, health care issues, agrarian conflict, public order crimes, degradation of protected forest in-and-around the CoW, the slump area on the bank of the lake matano, environmental pollution threatens water resources and the quality of air, etc.
All of these problems above have been attributed to the PTVI's presence both direct and indirect. So that, PTVI always face some business interruptions or social movements from the local communities and non-profit organization (figure 1). They ask and criticize PTVI about the negative impact on the environment, as well as in relation to cultural and socio-economic issues. The multifarious responses and opinions depend on the respective viewpoint, and PTVI continues to operate under the shadow of perpetuating debate to the present day. Actually, the case of PTVI provides an example of a general situation that faces many mining industries in today's developing country, including Indonesia

Figure 1. Social Movement
For reducing and solving social movement, PTVI needs to consider a new approach in its strategy development in order to maintain a good social relationship, which are critical aspects influencing corporate success continuously. One of the important things that the company has to be considered is the implementation of the Corporate Social Responsibility (CSR) programs. It must be accepted and supported by the local community as a key stakeholder and involved them in decision making. In the practice, the maximum realization of the CSR program can't be reached if the base of relationships between the company and the local community are not relatively harmonious. Other words, if a company ignores its stakeholder relations and the social environment in which it operates. Therefore, PTVI has conducted a strategic CSR program within long-term basis called CSR for soft-landing mine closure scenario [2] (figure 2). The CSR program which encompasses two dimensions: socioeconomic and environmental concern. As shown in the diagram below, there are important things where environmental commitment set-up need to be implemented such as: (a) the recovery of environmental functions and supporting capacity, i.e., activities leading to the recovery of protected forests and production forests; (b) nature conservation, which consists of endemic conservation and preservation; (c) wastewater management and emission management, which consist of sediment control, lake conservation, the control of Cr +6 (heavy metal) and dust emissions. Meanwhile, the socioeconomic commitment consists of activities such as (a) community empowerment, which includes activities such as the industrial training program, and create a mine closure foundation; (b) providing support to regional development, which provide of public infrastructures, and community-based forest management; (c) Alternative sustainable livelihood which includes institutional creation of employment opportunities outside the mine through sustainable agriculture and Industrial tourism.
From schematic and its explanation, PTVI has realized that greater corporate social responsibility (CSR) can contribute to the betterment of the community, human prosperity, and environmental sustainability, particular in the phase of mining closure. However, CSR for soft-landing mine closure always finds significant constraints to translate into on-the-ground CSR practice especially community development program. So that, CSR programs should be re-identified to create a local self-reliance, and also to adapt the regional sustainability. That is why the purpose of this paper is:  To evaluate the effectiveness of CSR implementation based on the concept of accountability norms. Specifically, the CSR program that have a multi-years mechanism, and then directly connected to the soft-landing mine closure program  To recommend the CSR model towards soft-landing mine closure towards the regional sustainability. Technically, to explore what should be done by CSR PTVI in supporting the achievement of regional sustainability after mine closure In turn, CSR program becomes more successful in a sustainable manner, follow the best mining practice and bring a bright legacy for the next generation

Material and Methods
CSR concepts and its evaluation and CSR for sustainable development were gathered through a literature review. Firstly, several journals and paper of CSR were identified through a content analysis. Based on this, Researchers conducted a specific analysis of methods, approaches, and strong point messages. Secondly, the table information was developed and applied to obtain comprehensive overviews. In which case, a specific theory for the evaluation of CSR will be decided and concluded. Thirdly, on-the-ground CSR practice, examining a total of 21 reports published by PTVI. The data set includes 6 sustainability reporting, 11 community development reports and progress, 3 annual reports published by PTVI and 1 document of a memorandum of understanding, and another data is 13 Verbeek Tabloid from local government (total data set, 34 reports). From the reports, we focus on CSR program both on the community development programs and mine closure (rehabilitation). Fourthly, the impact of CSR programs and the degree of social relationship between the company and local community are identified, listed, analysed and interpreted based on norm accountabilities. Finally, we developed the concept of CSR for regional sustainability after mine closure, which is the framework of sustainable development as a research basis

Gathering CSR concepts and its evaluation
There have been many attempts to establish a better understanding of CSR from initial concept, planning stage, executing a process, until the stage of monitoring and evaluation (table 1). According to the phrase "Corporate Social Responsibility" originates with H. Bowen [3], the concept of CSR is used to describe businesses' integration of social and environmental issues into decisions, goals, and operations. The sole purpose of CSR is to identify and improve a company's impact on society and the environment while driving stronger business results such as brand enhancement, market differentiation, and employee satisfaction. Another perspective from World Bank [4] commitment of business to behave ethically and to contribute sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large. Refer to Milton Friedman [5] in his book "A Stakeholder Approach" stated that CSR is interpreted as a means of increasing or maximizing the profits of the company where the shareholders are the focal point in pursuit of profit maximization. So that, stakeholder includes local community doesn't engage in business operation as key concern. For the evaluations of CSR stages, these literature reviews are indeed necessary in order to provide an overview of the concept CSR and its procedures. According to the table is showed some published papers and journals that have been reviewed and analysed. a. Corporate Social Performance b. The measurement of CSR uses the weighted performance indicators relating to a company's impact on different areas of activity such as the environment, the community, the human capital, the shareholders and the marketplace By analyzing the concept CSR and its evaluation, a substantial number of journals and papers are a lack of explaining the complicated relationship between local community concerns and company socially responsible behavior. Hence, it is required to build a framework which can explain or disclosure their relationship. In response to this matter, the evaluation of CSR can be analyzed on the basis of the structuration theory of Anthony Giddens [13].

Proposing Structuration Theory as The Frameworks
As formulated by Anthony Giddens [13], Structuration theory is centrally concerned with the order as "the transcending of time and space in human social relationships (figure 3). In other words, Structuration is about conditions governing the continuity or transformation of structures, and therefore the reproduction of social system. Principally, Structuration theory contains three structures that examined 1) Structure of Signification, 2) Structure of Legitimacy, and 3) Structure of Domination [14]. The means by which structures are translated into actions are called modalities, which are interpretive schemes, facilities, and norms. These modalities can explain why and how interaction is affected. The three dimensions of interaction are described as communication, power, and sanctions. Giddens calls to this interaction as the "duality of structure". It is the essential to understand the complexities that exist in the relationship between the two elements. The table below will be drawing the structuration theory.

Structure
Signification Domination Legitimation

Modality
Interpretive Schemes

Facilities Norms
Interaction Communication Power Sanction Based on the schema, the structuration theory provided a meta-framework, which is to accomplish a complicated task. Structuration theory can be summarized what is important as follow.  The structure of signification; representing the constitution of meaning, which provide individuals with interpretive schemes by which they make sense of what other say and do. They are a set of categories or systems of relevance applied in the sustaining of day-to-day communication [14]. On the one hand, interpretive schemes are enabling as they guide organizational action, allow interpretation of ambiguous situations, and reduce uncertainty in conditions of complexity and change [15]. According Giddens [13], the human being is an intentional agent when admitting that the agents use their linguistic skills to talk, write and reflect on the rules and resources used in social interaction. The Interpretive act can results in multiple and mistake meanings.  The structure of legitimation; providing a moral order via naturalization of societal norms, values, and standards. When individual agents interact, they exhibit consciously, subconsciously, or unconsciously meanings of their behaviour (Giddens refers to these as sanctions). The literature distinguishes broadly among three types of legitimacy; the first is normative, or what moral legitimacy. The second is pragmatic legitimacy. The third is cognitive legitimacy [16] (table 2).  The structure of domination; Understanding the power relationship as a form of interaction between the actor and the structure. In this interaction, resources can be used as a form of authority resources, which allow agents to control persons. Resources can also be used in the form of allocative resources, which allow agents to control material objects or property [17]. In Giddens' view, the resources are the means by which power is exercised, and also to promote facilities in social relations. According to Weber [14] defines power as the probability that one actor, within a social relationship, is able to carry out his own will despite resistance. Organization "makes sense" and/or is "taken for granted" according to socially construct "realities." Each structure has the above aspects, involving different combinations of rules and resources. These rules and resources the agents rest on in the production and reproduction of social systems are the products of social action [18]. For Giddens, the structure is more specific and detailed than a system, referring to structured practices.

CSR activities based on The Structuration Theory
In the CSR implementation, the relationship between the local community (truster) and company (Trustee) is of central to the use of structuration theory. Researchers have analysed some data from directly. It emphasizes that the company is there to listen, is highly concerned and would like to be followed up. For example, Public consultation, participatory need assessment, etc.  Indirect communication, The Company provides a media information to the community about CSR program and its progress such as a newsletter, annual reports, information sessions, charitable donations and employee volunteering, information on social and environmental performance through a sustainability report, etc.
Refer to structuration theory, it represents the constitution of meaning, which provide interpretive schemes as an analytic lens for examining community assumptions and facilitate communication. It may be identified the use of common language and the disparity in language structure within CSR communication strategy. In the practice, a common language could be applied to the local community when facing different interpretation about special CSR program, for example, CSR for renewable energy with the advanced technology. While the disparity in language structure can be analyzed when individual stakeholders conduct an interpretation with their own background perceptions. For example, "Mapping" , it could be interpreted such as drawing a land contour by general people, but a CSR facilitator (Company) means conducting a social survey in participatory need assessment, etc. The disparity in language structure can generate a highly different understanding between company and community. Therefore, the disparity of language structure can be reduced or found out solution with a communication regularly both of them in order to make the same vision or a mutual understanding.
In Corporate Social Responsibility communication, there are some strategies that are adapted individually, case by case to the needs and standards of the company and its environment. All these Corporate Social Responsibility communication strategies are also separated into internal and external measures and are adjusted to the status of the program (CSR Company). According to Jen Boynton [19], CSR communication has some barriers to be effective, such as 1) Scattershot CSR communications, Company want to caution against disclosing too much information. At the same time, it is important to be strategic about how the information is shared in order to maximize the positive impact of the communication, 2) Communications operates separately from operations. There's a harsher term for the case where the communications message is not backed up by the actions of other departments: greenwashing. When a communications team runs around telling stories about the great things a company does without the input of the X, bad things can happen, 3) Avoiding the negative. Many CSR communications focus on the positive and that's great, but it's also important to be honest when things aren't going so well, otherwise, it's hard to believe the good things. In the practice, CSR communication to be credible may consist in reporting the change and reassuring stakeholders by informing them on the program's progress, as well as on misconceptions in relation to the CSR implementation process. Therefore, Communicating on CSR initiatives and performance is a critical competency for successful companies.
Refer to structuration theory, CSR communication needs to be followed the constitution of meaning, which provide interpretive schemes as an analytic lens for examining community assumptions and facilitate communication. At the local community, there is a wide variety of interpretation and expectation associated with the performance of CSR programs including mine closure. The difference of the interpretation on CSR program is a moderate way or logic (common sense), but sometimes it touches into the diverse structure of language. Therefore, CSR communication may be identified the use of common language and the disparity in language structure. In the practice, a common language could be applied to the local community when facing misinterpretation about special CSR program, which is required a technical knowledge. For example, the method of participatory rural appraisal (PRA), a manager or CSR facilitator can explain the meaning of PRA and its approaches to the local community. Hence, the local community can be more understand about PRA in a simple and unambiguous. While the disparity in language structure can be established when the local community makes an interpretation with their own background experience and conditions. For example, "Community Development", it could be interpreted by the local community as charity program through donation for the local community continuously, but a CSR facilitator (Company) means conducting CSR programs in order to the local community could be selfsufficient based on their local resources, not dependent on the company, etc. The disparity in language structure can generate a highly different understanding between company and community. Therefore, the disparity of language structure can be reduced or found out solution with a communication regularly both of them in order to make the same vision or a mutual understanding

CSR for Good Corporate Governance as a Structure of Legitimation
Mining companies must be aware and understand the norms of the local community and be able to collaborate with them, as they represent the local 'rules of the game'. One of the rules of games is "The right thing to do" as a moral basis. If failure to do that the mining operation can be stopped or rejected. As a multinational mining company, PTVI is still struggling on how to manage the risk on its business and getting a legitimacy from the local community as well as complying with government regulation. As one of the instruments for getting the legitimation, Corporate Social Responsibility can be seen as a manifestation of good corporate governance models, which are pertinent issues within transparency, responsibility, accountability, and fairness. It should be a part of company's values. For understanding company values, It could be seen its vision and mission as an entry point to measure the legitimation. The development of a genuine CSR vision and mission is often triggered by shareholder interest and accommodated by local stakeholders needs. According to PTVI's vision and mission stated: "to transform natural resources into prosperity and sustainable development, and then to be the number one global natural resources company in creating long-term value, trough excellence and passion for people and the planet" [20]. From this statement, it reflects that PTVI has a global standard to implement the best mining practice and the framework of sustainable development in the higher scale priority. These are organizational values or norms that are likely to have implication for getting the legitimation. Therefore, consistent with company's values, embedded in the company culture, and ideally integrated into the company business operations. In other words, the mission and vision should be transferred as well as its implementation from Board of Directors, Strategic Management until Operational Level. At the certain level, the effectiveness of vision and mission may be beyond normative legal compliance and the liability of the company. At this point, CSR for good corporate governance could achieve the "Cognitive Legitimacy" in the structure of legitimation. This means a company pursues goals that society deems to be proper and desirable. Other words, Constituency support for the company is not due to self-interest, but rather due to its taken-for-granted character. Technically, a legitimation should not only judge on their economic success but on non-economic criteria, such as comply with the law (what is permissible and what is not), ethical aspect (be moral, fair, respect people's rights, avoid harm or social injury and prevent harm caused by others). Therefore, PT Vale Indonesia (PTVI) declared to comply with all laws both formal based on government regulation and informal based on local culture [21]. Based on report data [22], we assume that PTVI is generally accepted by the public at large because of its role in the advancement of society's needs and well-being, and the economic growth for regional sustainability. Specifically, there are two key factors that PTVI can be accepted at the phase of mining operation: 1) Because of the need for labor, PTVI can absorb a large body of manpower and provide many opportunities for work, and 2) Local government income directly or indirectly is obtained from PTVI and has helped provide more positions in the local government bureaucracy. However, this acceptance is neither automatic nor unconditional, one thing that is very important to remember that the quality of legitimacy factors is dynamic, intangible and responsive to changes in perceptions regarding the company and is also susceptible to outside influences.

The Impact of CSR program and Procedural fairness as a Structure of Domination
In this paper, CSR activities according to Structure of domination could be influenced by the impact of CSR program and the implementation of procedural fairness. Here are summarize of them  The impact of CSR program -Based on data of soft-landing mine closure [2], CSR program has been divided into two approaches namely socioeconomic concerns and environmental concern.
In the practice, socioeconomic concerns explain about the alternative sustainable livelihood, support to regional development, Community Empowerment, while environmental concerns focus on waste and emission management issues, impact on biodiversity and habitat, and Environment and capacity restoration. In the practice, there are two impacts of CSR programs, which will be increasing local's trust, they are "Independency and Sustainability". In detailed, Independency means the community should be independent enough to empower its own resources and to decide how best to explore these resources without depending on the existence of the company. While, Sustainability refers to the process of building equitable, productive and participatory structures to increase the economic empowerment of communities and their surrounding regions. Therefore, The main challenge for PTVI is to improve CSR programs that maintain goodwill for the company and address the long-term developmental needs of communities in a sustainable way (sustainable livelihood), without creating a culture of dependency [23]. CSR program for soft-landing mine closure can be accepted or unaccepted by local people depend on the CSR impacts. If CSR for socioeconomic and environmental impacts may be worse than expected, hence, the local community will reject the CSR program. However, if CSR for socioeconomic and environmental may be positively experienced than expected level, hence, the perception of CSR impact will be found a trust and acceptance by local community.  Procedural fairness -This approach is used to evaluate on how local community perceive the CSR procedures are designed. In mine closure program, the implementation of CSR program have been designed with two model of decision makings: 1) Following the schema of CSR for community development, It uses a participatory need assessment that the program is designed through focus group discussions and in-depth interviews with local community, and partnership with local government. decision-making process and the decision outcomes. From this finding, we can assume that local community infers the procedural fairness of an authority based on the extent to which they feel involved in the decision-making process. The basic question for it, whether local community regards the procedure as fair or unfair, whether decision makers treat local community in a respectful way, or disrespectful way, and whether the local community has actively participated in decision-making processes, or as casual to be participated.
Both The Impact of CSR program and Procedural fairness is in form of allocative resources, which the company provides a way to examine how the evaluation of CSR comprehensively and structurally 4. Discussion 4.1. Regional Sustainability based on CSR Mining Closure After the evaluation of CSR program through Structuration Theory, next step, the improvement of CSR mine closure scenario for enhancing the regional sustainability can be analysed generally. In this paper, CSR mine closure based on the frameworks of sustainable development is a basic measurement for the successful implementation of regional sustainability after mine closure. This implies that the CSR for mine closure can be designed, in comprehensive terms, as the creation of sustainable outcomes through the minimization of environmental, social and economic impacts on host communities and the maximization of positive legacies that contribute positively to future generations. Based on this, there are the three the framework of sustainable development could be analysed for regional sustainability [24].
Economic development -Regional sustainability suggests the investment of generated revenues, to ensure the future development and long-term livelihood of the local communities. CSR for mining closure is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve sustainable livelihood. Especially, PTVI has to support the local community & government to explore replacement renewable resources as economic activities within PTVI operation area, to replace nickel as the main source for economic growth Environmental protection -Regional sustainability recognizes that all life has intrinsic value, is interconnected and that environmental protection and ecological integrity are part of the irreplaceable life support systems. In the mining industry, minimizing the environmental impact of mining resource exploitation and land rehabilitated to allow successive use [25]. Specifically, PTVI as mining companies has an obligation because their business deals a lot with extracting minerals from below the ground. In order to the company must give a specialized CSR programs dedicated to restoring the land through reclamation, which means restoring the disturbed areas in returning the land to its original state to the maximum extent possible, so that it could still be of use to the community, and to conserving the biodiversity spots from mainland until fresh water lake.
Culture and Social Cohesion -Regional sustainability promotes the reality and diversity of community and regions for increasing social cohesion, and the critical importance of 'sense of place' and heritage (buildings, townscapes, landscapes, and culture) in any plans for the future. Specifically, PTVI has to fully support the welfare and quality of life of local community especially indigenous people, preserving the culture of local community, and reducing the social and cultural disruption to communities, maintenance of stakeholder dialogue and transparency of operation In the practice, CSR mining closure for regional sustainability requires a strategic alliance collaboration among Government, Community, and Private Sector, and then discover the power in the concept for providing a coherent, integrated each program and the CSR's long-term vision-mission. As the multi-international mining company, PTVI should show its moral obligation or responsibility for supporting regional sustainability. The decision to create a regional sustainability after mine closure can be also connected to its vision and mission on "the framework of sustainable development" [26]. It becomes a valuable vision for exploring ways to bring up internal changes in culture and structure. In turn, a commitment to the environmental protection and the development of socioeconomic may be beyond normative legal compliance and the liability of individuals. At this point, CSR for soft-mine closure could be categorized as "Cognitive Legitimacy" in the structure of legitimation. This means a company pursues goals that society deems to be proper and desirable. Other words, Constituency support for the company is not due to self-interest, but rather due to its taken-for-granted character. At the end, Public trust can be presented in form of social license to operate for the company.

Conclusion
The implementation of CSR towards mine closure is not an instantaneous process, and requires a sustainable manner. Therefore, the evaluation of CSR program must be conducted in order to review the mine closure program and its progress. In turn, CSR for mine closure should be soft-landing that will guarantee the sustainable livelihood (socioeconomic) for the local community, and also to maintain carrying capacity of the environment. Based on this, Regional sustainability can be achieved and maintained in order to face the future in the phase of mining closure In this paper, the evaluation of CSR for soft-landing mine closure program is examined with using Giddens' structuration theory as a framework analysis. At this point, the understanding social relationship between the company and the local community is disclosed and analyzed. In providing the analysis, Researchers analyzed the CSR for soft-landing mine closure, which is referred to three structures: 1) structures of signification, 2) structures of legitimation, and 3) structures of domination. For the structure of signification to be implemented, CSR communication both direct and indirect must be designed with "credible". It must honestly and transparently explain all the implications, and benefits of CSR program, including unsuccessful CSR program to be the lesson learned. As a language, CSR communication tends to be accommodative in form of "common language" to avoid misinterpretation between company and local community. The structure of Legitimation, the company can identify, and then implements strategies to maintain the social relationship with the local community. Therefore, the company (PTVI) needs to know its legitimacy level (normative, pragmatic, and cognitive) and what has to be done to maintain and/or improve. CSR program can be seen as media to sanction social relation (approval or not). It depends on company behavior. The structure of Domination, Trust and Corporate Social Responsibility (CSR) are two interrelated terms that need to be understood how they influence each other. Trust is the main thing. If there is no trust between the company and local people, nothing good will come out. In the practice, CSR should make a resource measurably in "trust" based on the impact of CSR program, and conduct a procedural fairness in CSR program. Actually, the impact of CSR programs positively is the most important to get "trust" from the local community.
The framework of sustainable development is required to construct the CSR programs for supporting regional sustainability. In the practice, a trilateral process of consultation among mining company (PTVI), local government, and the local community is conducted. To be fully effective, the process of consultation for mine closure should start at the mine design stage, not in the phase of mining operation or phase of closure planning. For the future research, the development of logic model for CSR mining closure can be designed according to the process of dialogue or consultation among them (Local Community, Government, and Company). The logic model describes logical linkages among program resources, activities, outputs, and audiences, and highlights different orders of outcomes related to a specific problem or situation [27]. In this way, logic models can be seen to support CSR mine closure programs both planning and evaluation

References
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