A Combined Approach of Analytic Hierarchy Process and Zero-One Goal Programming to Select CSR Program

Abstract

. In Indonesia, Corporate Social Responsibility (CSR) is an inherent responsibility of every industrial company to create and sustain a harmonious and balanced relationship with local community. The company is expected to proactively take part in supporting the basic needs of society and simultaneously developing healthy environment. The industrial company considered in this paper is crude palm oil (CPO) industry, located in Riau province of Indonesia. A set of activities program of CSR was formulated to meet the expectations of the society toward sustainable CPO industry. We use Analytic Hierarchy Process (AHP) to find the priority of the program. The zero-one goal programming is then used to choose which program to be implemented based on the priority result. The optimal result of the combined method show that the alternatives selected is in accordance with the priority result of AHP.