RELEGATING RESPONSIBILITIES: A STUDY OF PERTAMINA UNIVERSITY

This case study strives to capture the way Pertamina University (PU), as a token of PT Pertamina’s CSR program, generates money as well as attracting talents to cover the employee turnover. This university should be distinguished from the Pertamina Corporate University (PCU) on which employees do the in-house trainings. In contrast, the PU recruits and educate students to catch up the corporate operational standards after which they would work for the corporation.

PT Pertamina relegates their CSR programs through another legal entity called the the Pertamina Foundation (PF). However, the 2012 Government Regulation No. 47 obliges the CEO to executes the CSR program afther which earning the approval from the BOD. In other words, CSR programs should not be run by other organisations whose legal standing are different.

As some, if not most, Indonesians perceive the idea of organisational/corporate social responsibilities as no more than philanthropy, donations or charities, the university might be an example of the best practice of ethical CSR within which the program succeeds to be financially productive, and supporting the corporate business activities.