IDEAS home Printed from https://ideas.repec.org/p/nst/samfok/20726.html

Making CSR work: Evidence from Indonesias tin mining province

Author

Listed:
  • Sabrina Scherzer

    (Department of Geography and Social Anthropology, Norwegian University of Science and Technology)

  • Christa Brunnschweiler

    (Department of Economics, Norwegian University of Science and Technology)

  • Tiara Elgifienda

    (Universitas Bangka Belitung, Indonesia)

  • HÃ¥kon da Silva Hyldmo

    (Department of Geography and Social Anthropology, Norwegian University of Science and Technology)

  • Nanang Kurniawan

    (Universitas Gadjah Mada, Indonesia)

  • Paivi Lujala

    (University of Oulo)

  • Primi Putri

    (Universitas Gadjah Mada, Indonesia)

Abstract

Mineral producing countries increasingly mandate corporate social responsibility (CSR) initiatives to mitigate negative impacts of mineral extraction through local development projects, but evidence of their effectiveness is scarce. The Indonesian Program Pengembangan dan Pemberdayaan Masyarakat (PPM) requires mining firms to fund local development projects. However, its effectiveness is limited by low public awareness and governance issues. We run a survey experiment with 610 respondents in 35 tinmining communities to test whether information on the PPM scheme and real-world examples of projects funded through it, presented through two video treatments, enhance knowledge and impact rights perceptions and behavior regarding PPM. Our findings show that a pure information treatment (T1) has a positive impact on respondents’ beliefs that they have a right to benefit from mining revenues but reduces their likelihood of making a donation to an NGO that supports PPM project implementation. Adding examples of successful PPM projects to the information treatment (T2) further strengthens respondents perceptions of their rights to benefit and influence decision-making and also increases the likelihood that they will request more information on PPM and local development, with no impact on actual behavior. We conclude that awareness of such revenue-sharing schemes like PPM could be enhanced with tailored information but whether this would be enough to increase involvement by local communities is uncertain.

Suggested Citation

  • Sabrina Scherzer & Christa Brunnschweiler & Tiara Elgifienda & HÃ¥kon da Silva Hyldmo & Nanang Kurniawan & Paivi Lujala & Primi Putri, 2026. "Making CSR work: Evidence from Indonesias tin mining province," Working Paper Series 20726, Department of Economics, Norwegian University of Science and Technology.
    • Handle: RePEc:nst:samfok:20726
    as

    Download full text from publisher

    File URL: http://www.svt.ntnu.no/iso/WP/2026/3_26.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frederiksen, Tomas, 2018. "Corporate social responsibility, risk and development in the mining industry," Resources Policy, Elsevier, vol. 59(C), pages 495-505.
    2. Fernando M. Arag?n & Juan Pablo Rud, 2013. "Natural Resources and Local Communities: Evidence from a Peruvian Gold Mine," American Economic Journal: Economic Policy, American Economic Association, vol. 5(2), pages 1-25, May.
    3. Brunnschweiler, Christa & Kurniawan, Nanang Indra & Lujala, Päivi & Putri, Primi & Scherzer, Sabrina & Wardhani, Indah Surya, 2025. "The right to benefit: Using videos to encourage citizen involvement in resource revenue management," Journal of Economic Behavior & Organization, Elsevier, vol. 236(C).
    4. Bezzola, Selina & Günther, Isabel & Brugger, Fritz & Lefoll, Erwin, 2022. "CSR and local conflicts in African mining communities," World Development, Elsevier, vol. 158(C).
    5. Heledd Jenkins & Natalia Yakovleva, 2006. "Corporate social responsibility in the mining industry: Exploring trends in social and environmental disclosure," Post-Print hal-04702702, HAL.
    6. Hilson, Gavin, 2012. "Corporate Social Responsibility in the extractive industries: Experiences from developing countries," Resources Policy, Elsevier, vol. 37(2), pages 131-137.
    7. Rachael Diprose & Nanang Kurniawan & Kate Macdonald & Poppy Winanti, 2022. "Regulating sustainable minerals in electronics supply chains: local power struggles and the ‘hidden costs’ of global tin supply chain governance," Review of International Political Economy, Taylor & Francis Journals, vol. 29(3), pages 792-817, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sandoval, Andres A. & Arce, Moises, 2026. "Insiders and outsiders on mining extraction: A survey experiment in Peru," World Development, Elsevier, vol. 198(C).
    2. Bezzola, Selina & Günther, Isabel & Brugger, Fritz & Lefoll, Erwin, 2022. "CSR and local conflicts in African mining communities," World Development, Elsevier, vol. 158(C).
    3. Muhirwa, Fabien & Shen, Lei & Elshkaki, Ayman & Hirwa, Hubert & Umuziranenge, Gloriose & Velempini, Kgosietsile, 2023. "Linking large extractive industries to sustainable development of rural communities at mining sites in Africa: Challenges and pathways," Resources Policy, Elsevier, vol. 81(C).
    4. Isacowitz, Jenna Jade & Schmeidl, Susanne & Tabelin, Carlito, 2022. "The operationalisation of Corporate Social Responsibility (CSR) in a mining context," Resources Policy, Elsevier, vol. 79(C).
    5. Saenz, Cesar, 2023. "Corporate social responsibility strategies beyond the sphere of influence: Cases from the Peruvian mining industry," Resources Policy, Elsevier, vol. 80(C).
    6. Hirlekar, Omkar & Kolte, Ashutosh & Vasa, Laszlo, 2025. "Transition in the mining industry with green energy: Economic dynamics in mining demand," Resources Policy, Elsevier, vol. 100(C).
    7. Dauda, Suleman, 2026. "‘We are searching for gold’: Exploration companies, corporate social responsibility and the ‘realities’ of mineral exploration in Ghana," Resources Policy, Elsevier, vol. 116(C).
    8. Choumert Nkolo, J., 2018. "Developing a socially inclusive and sustainable natural gas sector in Tanzania," Energy Policy, Elsevier, vol. 118(C), pages 356-371.
    9. Adeyinka O. Omotehinse & Ayodele Ajayi & Giorgio Tomi, 2024. "Social license as a tool to negotiate environmental sustainability," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 37(4), pages 745-757, December.
    10. Nhi Nguyen & Bryan Boruff & Matthew Tonts, 2018. "Fool’s Gold: Understanding Social, Economic and Environmental Impacts from Gold Mining in Quang Nam Province, Vietnam," Sustainability, MDPI, vol. 10(5), pages 1-22, April.
    11. Aragón, Fernando M., 2015. "Do better property rights improve local income?: Evidence from First Nations' treaties," Journal of Development Economics, Elsevier, vol. 116(C), pages 43-56.
    12. Badeeb, Ramez Abubakr & Lean, Hooi Hooi & Clark, Jeremy, 2017. "The evolution of the natural resource curse thesis: A critical literature survey," Resources Policy, Elsevier, vol. 51(C), pages 123-134.
    13. Bennett, Patrick & Ravetti, Chiara & Wong, Po Yin, 2021. "Losing in a boom: Long-term consequences of a local economic shock for female labour market outcomes," Labour Economics, Elsevier, vol. 73(C).
    14. Andrew Sharpe & Bert Waslander, 2014. "The Impact of the Oil Boom on Canada's Labour Productivity Performance," CSLS Research Reports 2014-05, Centre for the Study of Living Standards.
    15. Stephan E. Maurer & Andrei V. Potlogea, 2021. "Male‐biased Demand Shocks and Women's Labour Force Participation: Evidence from Large Oil Field Discoveries," Economica, London School of Economics and Political Science, vol. 88(349), pages 167-188, January.
    16. Lupi, Giacomo Roberto, 2026. "Mining expansion and intimate partner violence in the Democratic Republic of Congo: a difference-in-differences analysis of disaggregated violence types," Resources Policy, Elsevier, vol. 117(C).
    17. Ishak, Phoebe W. & Gradstein, Mark, 2021. "We Don't Need No Education: The Effect of Persistent Income Shocks on Human Capital," VfS Annual Conference 2021 (Virtual Conference): Climate Economics 242368, Verein für Socialpolitik / German Economic Association.
    18. Datu Buyung Agusdinata & Wenjuan Liu & Sinta Sulistyo & Philippe LeBillon & Je'anne Wegner, 2023. "Evaluating sustainability impacts of critical mineral extractions: Integration of life cycle sustainability assessment and SDGs frameworks," Journal of Industrial Ecology, Yale University, vol. 27(3), pages 746-759, June.
    19. Daza, Brian, 2024. "Government Spending Multipliers and Distribution of Commodity Booms in the Spatial Economy," Working Papers 690, Research Seminar in International Economics, University of Michigan.
    20. Fernando M. Aragón & Francisco Oteiza & Juan Pablo Rud, 2018. "Climate change and agriculture: farmer adaptation to extreme heat," IFS Working Papers W18/06, Institute for Fiscal Studies.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nst:samfok:20726. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Anne Larsen (email available below). General contact details of provider: https://edirc.repec.org/data/isontno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.