Winning Public Trust in Multi-Actor Bargaining: A Case Study of PT SMART Strategy in Facing Allegation of Environmental Destruction through RSPO

Abstract

Abstract-Winning public trust is an important element supporting the continuity of a firm or corporations, as public acceptance could guarantee profit to come in. Hence the loss of public trust is a serious threat for a corporation. For corporations, many factors could end up in the loss of public trust, and one issue that could lead to this situation is allegations of environmental destruction by corporations in their business operation. In facing this situation, corporations have to take various strategies in winning-back public trust. Taking one of the largest, publicly-listed, integrated palmbased consumer companies in Indonesia widely known as PT Sinar Mas Agrobusiness and Technology (hereafter SMART) as a case study, this paper reveals strategies that have been employed by SMART in order to winning-back public acceptance. The paper finds that through a process of multiactor bargaining in the mechanism facilitated by Roundtable on Sustainable Palm Oil (RSPO), SMART has been able to gaining-back public acceptance and successfully defending its position from allegations of environmental destruction.