Corporate Sustainability, NGOs, and the Role of Stakeholders: A Case Study

Sustainability is an important part of the global business practice. Companies’ sustainable actions are disclosed on sustainability reports to provide transparency on their contribution to society and the environment. This study analyzes the sustainability report of one of the leading companies in the Indonesian cement industry, PT. Semen Indonesia (Persero) Tbk. (SIG). The reports have claimed their substantial contribution in developing Indonesia ethically through corporate social responsibility (CSR). However, the company is widely known to have conflicts with local people in the area where they have their cement plants. Using literature review and document analysis, this article examines the SIG’s sustainability commitment by detailing its stakeholders’ role in achieving good corporate governance and also the relationship of SIG with NGOs as the third party in protecting the minority of SIG stakeholders which is the local people. The findings show that although SIG has correctly published a sustainability report, it omitted the negative actions and focused on emphasizing its CSR activities.