Implementing Corporate Social Responsibility (CSR) Program Through Zakat Model

Corporate Social Responsibility (CSR) is the commitment of the business institution to its environment and community. Company awareness towards social responsibility is embodied in the form of CSR programs, awareness of the company to the environmental society built on the third phase of the 1994–2011 era when CSR was encourage to take more roles so that the presence of a company can really benefitting the surrounding community. In one hand, various types of program intervention have been delivered by the company to the public. And in the other hand, as Muslims employees who work at their company has a social responsibility in the form of zakat. This research is collaboration between PT Arun and the Faculty of Economics and Business as well as BadanAmil Zakat Malikussaleh University that aims to see zakat models which can be adopted by the company as a CSR program in improving community welfare. The research was conducted within twelve villages located surrounding the PT Arun NGL site. Stratified random sampling was apllied by taking 10% of the total population in each village. Describing the result of data analysis, descriptive analysis method was applied and multiple linear regression model in identifying the model. The correlation coefficient (R) of 0.774 (77.4%); shows a very close relationship (correlation) between mustahiqrecruitment, mustahiqverification, business training, ZakahDisbursment, and monitoring mustahiq affect their welfare. While the coefficient of determination (R ²) of 0,600 (60.0%); means the process of mustahiq recruitment, verification, business training, realization of charity, and monitoring has the ability to explain their effects on increasing the welfare of mustahiq. While the remaining factors (40.0%) could be explained by other variables out of the model of this study.