ANALYSIS OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PROGRAM IMPLEMENTATION ON CORPORATE REPUTATION IN THE MINING INDUSTRY , WITH A CASE STUDY AT PT X FINAL PROJECT In partial fulfilment of the requirements for the master’s degree from Institut Teknologi Bandung By HENRIKA KRISTI Student ID: 29123267 (Master of Business Administration Program) INSTITUT TEKNOLOGI BANDUNG 2025 i ABSTRACT ANALYSIS OF ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PROGRAM IMPLEMENTATION ON CORPORATE REPUTATION IN THE MINING INDUSTRY, WITH A CASE STUDY AT PT X By HENRIKA KRISTI Student ID: 29123267 (Master of Business Administration Program) In recent decades, the global emphasis on corporate sustainability and social responsibility has grown substantially. Stakeholders increasingly evaluate companies not only on their financial results but also on their commitment to environmental, social, and governance (ESG) principles. This is particularly critical for industries like mining, which inherently have significant environmental and social footprints. Mining companies face considerable pressure to implement effective ESG programs to ensure ecological preservation, foster positive community relations, and adhere to relevant regulations and ethical business conduct. This research undertakes a comprehensive analysis of the implementation of ESG programs at PT X, a prominent mining company operating in Indonesia, and investigates the impact of these programs on its corporate reputation. The study is motivated by the increasing recognition of ESG factors as crucial determinants of long-term corporate value and stakeholder trust within the mining sector. While various ESG frameworks and guidelines exist, their effective implementation and the resultant impact on corporate reputation in the Indonesian mining context warrant in-depth investigation. Understanding this relationship is vital for PT X and other mining companies seeking to enhance their sustainability practices and public image. This research aims to address the gap in understanding the specific mechanisms through which ESG implementation influences corporate reputation in this industry within the Indonesian context. This research employs a mixed-methods approach. The implementation of ESG programs at PT X is assessed through a qualitative analysis of company documents, policies, and interview data collected from key stakeholders, including company management, employees, community representatives, and regulatory bodies. The impact of ESG implementation on corporate reputation is evaluated using both qualitative and quantitative data. Qualitative data includes media analysis and stakeholder perceptions gathered through interviews and focus group discussions. Quantitative data analysis involves examining the correlation between ESG performance indicators (derived from company reports and publicly available data) and measures of corporate reputation, such as media sentiment, stakeholder surveys, and potentially investor confidence metrics. ii The central assumption guiding this research is that a robust and effectively communicated ESG program positively influences a mining company's corporate reputation. The research seeks to test the proposition that enhanced ESG implementation at PT X leads to improved stakeholder trust, a more positive public image, and potentially greater investor confidence. The primary research objectives are twofold: first, to comprehensively analyze the current state of ESG program implementation at PT X, identifying its strengths, weaknesses, and challenges; and second, to determine the impact of these implemented ESG programs on PT X's corporate reputation among various stakeholder groups, and to suggest potential areas for improvement in PT X's ESG strategy to further bolster its reputation. A brief review of existing literature highlights the growing body of research linking ESG performance to corporate reputation and financial performance. Studies emphasize the importance of transparency, stakeholder engagement, and the integration of ESG into core business strategies. However, research specifically focusing on the nuances of ESG implementation and its reputational impact within the Indonesian mining industry remains limited. This study aims to contribute to this body of knowledge by providing a detailed case study analysis. The anticipated results of this research include a comprehensive assessment of PT X's ESG program implementation, highlighting specific initiatives and their effectiveness. Furthermore, the study is expected to reveal the extent to which these ESG efforts influence PT X's reputation among different stakeholder groups, identifying key drivers and potential discrepancies in perception. The research will also offer practical recommendations for PT X to optimize its ESG strategy and communication to enhance its corporate reputation and long-term sustainability. The contribution of this research to the field of study lies in providing empirical evidence of the relationship between ESG implementation and corporate reputation within the specific context of the Indonesian mining industry. The findings will offer valuable insights for mining companies in Indonesia and other emerging economies seeking to leverage ESG practices for enhanced corporate reputation and sustainable value creation. The research will also contribute to the broader academic understanding of the interplay between sustainability, corporate image, and stakeholder relations in a sector with significant societal and environmental impact. Keywords: ESG Implementation, Corporate Reputation, Mining Industry, Stakeholder Trust, Sustainability Communication. iii ABSTRAK ANALISIS IMPLEMENTASI PROGRAM ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) TERHADAP REPUTASI PERUSAHAAN PADA INDUSTRI PERTAMBANGAN, DENGAN STUDI KASUS PADA PT X Oleh HENRIKA KRISTI Student ID: 29123267 (Program Studi Magister Administrasi Bisnis) Penelitian ini menganalisis implementasi program Environmental, Social, and Governance (ESG) di PT X, sebuah perusahaan pertambangan terkemuka di Indonesia, dan dampaknya terhadap reputasi perusahaan. Latar belakang penelitian ini adalah meningkatnya perhatian global terhadap keberlanjutan dan tanggung jawab sosial perusahaan, di mana para pemangku kepentingan tidak hanya mengevaluasi kinerja keuangan tetapi juga komitmen terhadap prinsip- prinsip ESG, terutama dalam industri pertambangan yang memiliki dampak lingkungan dan sosial yang signifikan. Penelitian ini bertujuan untuk memahami bagaimana implementasi ESG mempengaruhi reputasi perusahaan dalam konteks pertambangan Indonesia, mengingat masih terbatasnya penelitian yang berfokus pada aspek ini. Penelitian ini menggunakan pendekatan metode campuran, menggabungkan analisis kualitatif dan kuantitatif. Implementasi program ESG di PT X dinilai melalui analisis dokumen perusahaan, kebijakan, dan wawancara dengan pemangku kepentingan utama. Dampak implementasi ESG terhadap reputasi perusahaan dievaluasi melalui analisis media, persepsi pemangku kepentingan dari wawancara dan diskusi kelompok terarah, serta analisis korelasi antara indikator kinerja ESG dan ukuran reputasi perusahaan seperti sentimen media, survei pemangku kepentingan, dan potensi metrik kepercayaan investor. Asumsi utama penelitian ini adalah bahwa program ESG yang kuat dan dikomunikasikan secara efektif akan berdampak positif terhadap reputasi perusahaan pertambangan. Penelitian ini menguji proposisi bahwa peningkatan implementasi ESG di PT X akan meningkatkan kepercayaan pemangku kepentingan, citra publik yang lebih baik, dan potensi kepercayaan investor yang lebih besar. Tujuan utama penelitian ini adalah untuk menganalisis implementasi program ESG di PT X, mengidentifikasi kekuatan dan kelemahannya, serta menentukan dampaknya terhadap reputasi perusahaan di antara berbagai pemangku kepentingan, dan memberikan rekomendasi untuk perbaikan strategi ESG PT X. Tinjauan literatur menunjukkan adanya hubungan antara kinerja ESG dan reputasi serta kinerja keuangan perusahaan. Penelitian sebelumnya menekankan iv pentingnya transparansi, keterlibatan pemangku kepentingan, dan integrasi ESG ke dalam strategi bisnis inti. Namun, penelitian yang secara spesifik membahas implementasi ESG dan dampaknya pada reputasi dalam industri pertambangan di Indonesia masih terbatas. Penelitian ini bertujuan untuk mengisi kesenjangan ini melalui studi kasus mendalam tentang PT X. Hasil yang diharapkan dari penelitian ini adalah penilaian komprehensif terhadap implementasi program ESG PT X, termasuk identifikasi inisiatif spesifik dan efektivitasnya. Selain itu, penelitian ini diharapkan dapat mengungkapkan sejauh mana upaya ESG ini mempengaruhi reputasi PT X di antara berbagai kelompok pemangku kepentingan, mengidentifikasi faktor-faktor utama dan potensi perbedaan persepsi. Penelitian ini juga akan memberikan rekomendasi praktis bagi PT X untuk mengoptimalkan strategi dan komunikasi ESG guna meningkatkan reputasi perusahaan dan keberlanjutan jangka panjang. Kontribusi penelitian ini terletak pada penyediaan bukti empiris mengenai hubungan antara implementasi ESG dan reputasi perusahaan dalam konteks industri pertambangan Indonesia. Temuan penelitian ini diharapkan memberikan wawasan berharga bagi perusahaan pertambangan di Indonesia dan negara berkembang lainnya yang ingin memanfaatkan praktik ESG untuk meningkatkan reputasi perusahaan dan menciptakan nilai berkelanjutan. Penelitian ini juga berkontribusi pada pemahaman akademis yang lebih luas mengenai interaksi antara keberlanjutan, citra perusahaan, dan hubungan pemangku kepentingan dalam sektor dengan dampak sosial dan lingkungan yang signifikan. Kata kunci: Implementasi ESG, Reputasi Perusahaan, Industri Pertambangan, Kepercayaan Pemangku Kepentingan, Komunikasi Keberlanjutan. v VALIDATION PAGE vi DECLARATION OF NON -PLAGIARISM Plagiarism is: Taking, using, and submitting a work of another, including an idea, writing, or invention, as if it was her or his own. Plagiarism includes (but not limited to): 1.