Evaluating Social and Environmental Return on Investment in CSR Initiatives of PT INALUM
Muhammad Fikry Aransyah1, Rizka Khoirulika2, Alex Ridwan3, Rosyid Nurrohman4

1,4Universitas Mulawarman, 2Inosustain, 3PT. Inalum

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.

Keywords: Corporate Social Responsibility, SROI, Environmental Sustainability, Community Development, The Theory of Change, Corporate Governance

Topic: Social Community Dynamics in the Digital Age