Session 4, Parani


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International & intercultural CSR Communication

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Session 4, Parani

  1. 1. Public Relations Planning Strategies inImplementation of Community DevelopmentProgramsA Case Study of PT. Freeport Indonesia and PT.Total Exploration and Production Indonesie Rizaldi Parani Universitas Pelita Harapan
  2. 2. BackgroundIndonesian Law No. 40/2007 on LimitedCorporations, article 74:  Corporations in the business of, or related to, natural resources have the obligation to implement social and environmental responsibility.  A corporation that does not implement its obligation as mentioned in point (1) is given sanctions based on legislations.
  3. 3. Success indicators of CSRprogams Stakeholders participation ( planning, implemantation, monitoring, and evaluation ) Community self-sufficiency Sustainability
  4. 4. Need to know Corporations need to build good relations with the stakeholders and recognize the characteristics of environment The role of PR practicioners in every corporations are very important, particularly for oil and mining companies There are 250 oil corporations in Indonesia and 59 begun production and 384 corporations in mining
  5. 5. Some cases that PR practicioners arefailed to recognize the enviroment Freeport :  July-august 2011 : 8 cases of violence ( gunshot ) resulting 25 deaths.  September 2011 – Up to now : the strikes of Freeport employees, demanding for better working condition and higher payment  Mid October 2011 : Pipeline sabotage at Freeport
  6. 6. Problem statement The role of PR practicioners in most oil and mining corporations is at the forefront in their relations with the communities PR practicioners have to formulated community development progams by recognizings the characteristic of the social environment of the communities How are the strategies of oil and mining corporations PR practitioners in implementing communities development progams ?
  7. 7. Literature review Public relations according to Long and Hazelton is a communication function of management through which organization adapt to, alter, or to maintain their environment for the purpose of achieving organization goals. According to White and Mazur (1995) PR practitioners require skills in social analysis as well as realistic knowledge of business operations. The skills of PR practitioners in analysing the physical culture and social environments of communities are very important for the corporations in order to create mutual relations with the corporations. Community developments progams have to consider the social and cultural characteristics of surrounding commumities in order to build good relationship with the stakeholder.
  8. 8.  Community development is a form of skill and capability improvement done by the corporation which can create a strong social capital. According to Coleman all social relations and social structure facilitate same form of social capital : actors established relations purposefully and continue them when they continue to provide benefits.
  9. 9.  In order to develop a good progam planning strategy, PR practicioners need to follow the steps ( Cutlip, Center and Broom ) : Defining problem, planning and programming, taking action and communicating, evaluating. In the process of understanding the community, PR practicioners must follow some approaches: consultation, scanning the enviroment, collaboration, and negotation.
  10. 10. Research method Research approach : qualitative Research method : descriptive ( case study ) Units of analysis : PT Freeport Indonesia and Total Exploration and Production Indonesie Case : Planning strategy of community development programs Type of data : Primary (depth interview) and secondary (relevants articles and literatures)
  11. 11. Finding and Discussion PT FI community development programs formally started in 1998 in the cooperations with LPMAK, a representative of local goverment and Papuan informal leaders. Focus of the progam in the economic sectors by developing small and middle scales enterprises perform by the social outreach and local development body ( SLD ) of PT FI in cooperation with Bandung Techlonogy Institute and Semarang State Polytechnics.
  12. 12.  The objective of the progams are to minimize the wellfare gap between locals and newcomers, and to increase the wellfare through education and also provide more skills in entrepreneurship. The outcome : the programs are not succesfully implemented because of the lack of cultural and social understanding, and lack of transparency in budget utilizations.
  13. 13.  TEPI Community development program established in 2008 in the cooperations with BP Migas, local goverment bodies, local police, as well as military. Focus of the development programs is in community empowerment by giving a certified welding skills training. The objective of program is to fulfill the needs of skilled welders for pipes used in drilling. This program runs in the cooperations with Bandung Technology Institute as a certifying body. The outcome : received positive responses not only from the local community people but also from the media.
  14. 14.  The key success point of TEPI is because they follows the comprehensive approach such as consultation and scanning the environment with the local community people in order to understand about the characteristics of the community as well as the needs. As TEPI is monitored by BP Migas, it has excellent relationship with all the stakeholders not only in the implemantation but also in coordination. TEPI also have a positive relations with the local media and make all the programs reported and monitored very well. This can stimulated positive participation from the stake holders and build the trust between them.
  15. 15.  On the other hand PT FI has failed scanning the environment in order to identify the needs the local people and PT FI could not satisfy their stakeholders. Although PT FI has build good collaboration with community groups, PT FI still has to face less participation and cooperations.
  16. 16. conclusion The community development progam strategies implemented by PR practitioners from PTFI and TEPI are comprised of similar stages, and are equally comprehensive. However the formulation and implementation, from the initial process to the end result, of both corporations shows differences. The two corporations face different social and enviromental characteristics Involment of surrounding communities and stakeholders to participate in all activities is highly important and PR practitioners need to involve the participation of stakeholders and gain support from the media.
  17. 17.  PR practitioners need to perform consultation to understand the needs and issues, collaborating with all stakeholders and negotiate in order to minimise the conflicts. PR practitioners must build mutual benefit between the corporations and the community members