Evaluating Social and Environmental Return on Investment in CSR Initiatives of PT INALUM

DOI

10.2991/978-2-38476-505-8_2How to use a DOI?

Keywords

Corporate Social Responsibility; SROI; Environmental Sustainability; Community Development; The Theory of Change; Corporate Governance

Abstract

This study assesses the Social Return on Investment (SROI) of Corporate Social Responsibility (CSR) initiatives implemented by PT Indonesia Asahan Aluminium (Persero) in the aluminium smelting industry. Focusing on environmental sustainability and community development, the initiatives are evaluated for their alignment with global sustainability objectives, particularly the United Nations Sustainable Development Goals (SDGs). Using a comprehensive SROI framework, the research measures the economic, environmental, and social impacts of PT INALUM’s CSR activities, including carbon sequestration, biodiversity conservation, and improvements in community welfare. The analysis reveals a high SROI ratio of IDR 18.02 for every IDR 1 invested, indicating significant returns and demonstrating the effectiveness of the company’s integrated CSR strategy. The study follows a structured approach (defining scope, identifying stakeholders, mapping impacts, monetising outcomes, and calculating the SROI ratio), showing precise alignment with SDG targets on economic growth and environmental stewardship. The findings provide empirical evidence on the value of integrating CSR into corporate strategy, offering a replicable model for sustainability in industrial contexts. Overall, the research highlights the potential of strategic CSR to drive sustainable development while enhancing transparency and accountability in corporate governance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Download article (PDF)

TY  - CONF
AU  - Muhammad Fikry Aransyah
AU  - Rizka Khoirulika
AU  - Alex Ridwan
AU  - Rosyid Nurrohman
PY  - 2025
DA  - 2025/12/12
TI  - Evaluating Social and Environmental Return on Investment in CSR Initiatives of PT INALUM
BT  - Proceedings of the 7th Open Society Conference 2025 (OSC 2025)
PB  - Atlantis Press
SP  - 4
EP  - 15
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-505-8_2
DO  - 10.2991/978-2-38476-505-8_2
ID  - Aransyah2025
ER  -