ABSTRACT

This chapter analyses the third case within the Astra case study. It shows the roles of a large palm oil company in contributing to poverty eradication surrounding its plantations. The empirical fi ndings from the case of smallholder farmers’ development program (the PALMOIL program) show that the corporate social responsibility (CSR) program is driven by the company’s intention to fulfi l their business needs by solving the issues of poverty surrounding its palm oil plantations. This program has contributed directly to the United Nation’s sustainable development goals in poverty eradication (Goal 1) and in providing inclusive and equitable quality education and promotion of lifelong learning opportunities for all (Goal 4). Through the PALMOIL program, which started in 1995, the company builds social capital that improves farmers’ capabilities. Capable farmers are empowered to act collectively with the company in achieving prosperity for both. As of 2011, the program has empowered 7,297 smallholder farmers to participate in the company’s supply chain with capabilities in practising sustainable palm oil principles (Astra Agro Lestari, 2011a).