| Retooling

Corporate Social Responsibility

Bandung, 5 Agustus 2019
Hilman Setiadi
Objectives for this session:

 At the end of this session, you should be able to identify and describe:
 A definition for CSR
 Reasons for having a CSR programme
 Objections to CSRWhat makes a CSR programme
 How a CSR programme is communicated
 Principles of reporting for CSR
 Some alternative viewpoints on CSR
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Corporate Social Responsibility?

What is:Corporate Social Responsibility?

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Corporate Citizenship Corporate
Responsibility
Also known as:
 Corporate Citizenship
 Corporate Responsibility
 Responsible Business

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Definition

 “Specifically, we see CSR as the voluntary actions that business can

take, over and above compliance with minimum legal requirements, to
address both its own competitive interests and the interests of wider
society.”Source:

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Why CSR?

 Consumers & investors: growing expectation for organisations to

behave responsibly
 Consumer awareness: ‘Green’ and ‘Ethical’ consumerism
 Legislation: H&S, EPA, Sustainability, Codes of Practice
 Globalisation: Adoption of ‘Best Practice’, Consumer & Legal
Acceptance.

Konsumen & investor: harapan yang meningkat bagi

organisasi untuk berperilaku bertanggung jawab
Kesadaran konsumen: konsumerisme 'Hijau' dan 'Etis'
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Legislasi: H&S, EPA, Keberlanjutan, Kode Praktik
Globalisasi: Adopsi 'Praktik Terbaik', Penerimaan
Konsumen & Hukum.
 Business advantages of CSR:
 Human Resources
 Recruitment, retention and morale of Staff
 Risk Management
 Investment in ‘ethical brand equity
 Brand Differentiation
 Build brand loyalty
 Reputation and brand attractiveness

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Sumber daya manusia Perekrutan, retensi dan moral staf Manajemen risiko Investasi dalam ekuitas merek
etis Diferensiasi Merek Bangun loyalitas merek Reputasi dan daya tarik merek
Business advantages of CSR:
 Business Development
 New markets, products and services
 Resources Management
 Better management and conservation of strategic assets
 Stakeholder Management
 Better internal and external relationships
 Freedom of operation: reduce government, public, NGO intervention in
organisation
Pengembangan Bisnis Pasar, produk dan layanan baru
Manajemen Sumber Daya Manajemen dan konservasi aset
strategis yang lebih baik Manajemen pemangku kepentingan
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Hubungan internal dan eksternal yang lebih baik Kebebasan
operasi: mengurangi intervensi pemerintah, publik, LSM
dalam organisasi
Corporate Social Responsibility

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adds value
Why not CSR?
 May take management focus away from core business activity
 May appear cosmetic – without genuine social benefit
 May make organisation more vulnerable to revelation of bad / unethical
business practice
 A restriction to free trade?

Dapat mengalihkan fokus manajemen dari

aktivitas bisnis inti Dapat tampil kosmetik - tanpa
manfaat sosial asli Dapat membuat organisasi
lebih rentan terhadap pengungkapan praktik
bisnis yang buruk / tidak etis Pembatasan
perdagangan bebas? Warehousing
Economist, Milton Friedman says:
 “The social responsibility of business is to increase its profits.”
 “What does it mean to say that "business" has responsibilities? Only
people can have responsibilities.”
 “…in a free society there is one and only one social responsibility of
business – to use its resources and engage in activities designed to
increase its profits so long as it stays within the rules of the game,
which is to say, engages in open and free competition without deception
or fraud."
Tanggung jawab sosial bisnis adalah untuk meningkatkan
keuntungannya." "Apa artinya mengatakan bahwa" bisnis
"memiliki tanggung jawab? Hanya orang yang dapat memiliki
tanggung jawab. " “... dalam masyarakat bebas ada satu dan
hanya satu tanggung jawab sosial dari bisnis - untuk Warehousing
menggunakan sumber dayanya dan terlibat dalam kegiatan yang
dirancang untuk meningkatkan keuntungannya selama itu tetap
dalam aturan permainan, yang artinya, terlibat secara terbuka dan
persaingan bebas tanpa penipuan atau penipuan. "
Some of the most common ways in which CSR is
demonstrated:
 Specialist ‘adopted’ projects
 Corporate charitable donations
 Voluntary schemes for staff
 Staff fundraising activities
 Changes to organisational operations

Proyek spesialis 'adopsi' Sumbangan amal perusahaan Skema sukarela untuk

staf Kegiatan penggalangan dana staf Perubahan pada operasi organisasi
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The four components of CSR:
 Economic
 Legal
 Ethical
 Discretionary

Ekonomis Hukum Etis Kebijaksanaan

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Communicating Corporate Social
Responsibility

 Communicating Corporate Social Responsibility

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General values statement
 Organisations should develop a general values statement which reflects
their stance towards CSR
 This may form part of a more comprehensive Mission Statement
 Should define ethical framework that guides the accomplishment of the
overall mission of an organization within a society

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Example: Organisational Focus

JP Morgan Chase

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Example: Environmental Focus
 Coca Cola

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Example: Customer Focus
 Home Depot

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Example: Employee Focus
 Johnson and Johnson

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Example: Stakeholder Focus
 Credit SuisseUnited Technologies

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Example: Social Focus
 Bristol-Myers Squibb

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Reporting CSR:
 CSR projects may be administered and communicate achievements
via:
 A dedicated CSR section or department
 The HR department
 Business development section
 Public Relations department
 Directly via CEO and / or Board of Directors

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 In conclusion: In this session we have looked
at: What is CSR
 Why CSR is likely to be come more widely adopted
 The business case for CSR
 The Value Statement (Customer, Employee, Stakeholder and Social
focus)
 Reporting and Accountability options for CSR including the ‘Triple
Bottom Line’ concept
 CSR and social criticism of international organisations

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 Thanks!

Source:https://slideplayer.com/slide/10917737/

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