International Journal on Economics and Social Sciences ISSN: 2442-9759 (Online) Vol.1, No. 1 January 2015 2442-8574 (Printed) Copyright©Universitas Bandar Lampung 2015 ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY IMPLEMENTATION AND SOCIAL AUDIT AT PT SEMEN PADANG Elvira Luthan 1 *and Sri Dewi Edmawati 1 1 Faculty of Economics, University of Andalas, Padang, Indonesia *Corresponding email:virasmi@yahoo.com ABSTRACT This study describes the implementation of CSR and social audit in PT Semen Padang. PT Semen Padang as one of the largest states owned enterprise in West Sumatra has a big hand in the development of West Sumatra. Analyses were performed with descriptive statistics and content analysis. The data analysis on the CSR activities of PT Semen Padang was done by performing content analysis on the audited company's annual report. Results of WKH DQDO\VLV VKRZHG &65¶V PRGHO implementation in PT. Semen Padang is on the form of physical development such as public facilities, education development, employment empowerment, economic empowerment, community services, public health services, environmental protection, sports, and the arts. A form of implementation of CSR programs is generally done directly and independently by a company-appointed team. PT Semen Padang has not purely implemented social audit of the CSR report, but it has integrated in the audit of the company's annual report. Keywords: Corporate Social Responsibility, Social Audit, States owned enterprise. 1. INTRODUCTION To remain exist; the company should be able to meet the needs and demands of all stakeholders. Company's concern is not only focused on the shareholder, but it should be to all of stakeholders, Nowadays, public awareness and sensitivity is higher to the social and environmental conditions and blaming companies as a trigger factor (Harahap, 2007). Furthermore, the impact of globalization, advances in information technology, and market transparency, companies should seriously and pay attention to the demands of society. This is the embryo to the birth of the concept of CSR (Corporate Social Responsibility). Practitioners, NGO activists, and academics have attempted to formulate and promote CSR in relation to society and the environment. Company is asked to give greater attention to social and environmental issues in economic decision-making related to its operational activities, as well as disclose CSR information in the annual report. This is in line with the philosophy which holds that the corporate entity is no longer a selfish, thus alienating itself from the community in which its operate, but rather a business entity shall conduct cultural adaptation to their social environment. This suggests that there has been a shift in the understanding of the meaning of an entity that was formerly charged only profit oriented towards the wider environment improving people's living standards. Pressure came among others from the shareholders (who are aware of CSR), Non-Governmental Organizations (NGOs), business partners (especially from countries which are sensitive to local community businesses) and public interest lawyers. In current reform and democracy climate in Indonesia nowadays, openness and accountability are very necessitated and considered by the public. The role of public oversight conducted through NGOs, as a non-profit organization whose supporters voiced various "public issues", which had a huge impact on business operations in Indonesia. Companies should be aware that these NGOs voice has great influence and is considered by the company's consumer and therefore cannot be ignored. Basically, CSR regards the company as a moral agent. With or without the rule of law, a company must up hold morality. The success of accompany in the perspective of CSR is to promote moral and