Grant Thornton Indonesia's Update

Engaging Stakeholders Through CSR

Corporate Social Responsibility or shortened CSR is one of the great aspects for the existence of a company in a modern world. A life of every single human being is great when it is balanced with many different aspects, so does a company. A CSR completes the aspects that some people may think it is enough, therefore it becomes balanced. There are at least five common aspects that support a running company (CSR not yet included). Firstly, the marketing aspect, the aspect which concerns how all the goods or the services are delivered good to the public that consumes it. Secondly, operational aspect which is a process of how all the goods or the services are made. The third is human resources aspect. Without it, the marketing and the operational aspect cannot be run. Those two aspects need people that have some certain quality in physical power and human’s brain. Therefore, a company should always be selective and careful while recruiting the employees because they all have to excellent no matter what. The fourth is the law aspect. There are always some certain rules from certain country that has to be followed very well. Well said, It is all about the licensing. The last one is money aspect. So now, what is the role of CSR and how it completes those five aspects? CSR concerns on the employees more in depth, the community, the environment both socially and economically, and the stock holder.

 

In common aspects, a company concerns of the quality of its employees only on recruiting. But with CSR, it is more than that. It does many ways to keep the quality for a long-term period even increased. In this kind of case, some companies do it by giving more training to the employees, building a higher level of cooperation sense between the employees, and not forgetting the existence of the employee's family by doing this in family-related terms such a family gathering and giving allowances to them. If all done pretty well, unconsciously the employees could have a very bold loyalty to the company itself. The loyalty of a company makes a company lasts longer and yet stronger as a unity.

 

A company that is built in some area should always pay attention to the community and the environment around it. If a company is developing to better in business, so the community around should. In running a company, a company needs the excellent employees. The community around a company could be potential employees. This community could be trained to be excellent in supporting a company in process. Not only it is beneficial for a community because they could become more wealthy in life. A company could also save some cost because it does not have to incur people from far location. A community lives along with a company. Besides the community, there is the environment a company should also pay attention to. The environment is literally a core to both company and community. It supports life in general. The air, the water, the trees, the animal, and the soil are the most important aspect in the environment. They rotate in a cycle supporting human’s life. If one of those aspects is damaged, the environment cannot fully support human’s life as well as before. Therefore, a company should take care of the environment as it supports life in general.

 

The people outside the internal that own the equity of a company are absolutely benefited. The value of the equity in the stock market is increased as the quality of a company also increased in many levels as mentioned before. Nowadays, widely known CSR activities that had been done by many companies are economic development, education and skills improvement, health improvement, cultural empowerment, infrastructure development, and off course environment development. Those activities seem to be the problems the world is facing. These are examples of some successful CSR activities:

 

Glencore

An anglo-swiss multinational commodity trading and mining company is a great example of  a company that has successful CSR. The CSR has developed economy in 2014 by re-evaluating their contribution to socio-economic by recruiting more local employees in their bussiness. by 2015, 80 percents of the employees are local. They also spent over $15.1 on local suppliers in operation just for supporting local trade economically.

 

Nippon Yusen

Education and skills improvement as a part of CSR activity has been done great by Nippon Yusen. As one of the oldest and largest shipping company in the world, It has given many people education and skills improvement. Though they only  recruit highly skillful employees. They still give the employees additional education which the curriculum within has been translated into many languages.

 

Lego

The air is the vital part of the environment we cannot live without. Breathing a bad air could be very bad for human’s health. It could increase the risk of autism babies, damage the heart and the lung, tidy up the bones, increase the aging process, and many more bad things. Lego as one of the most famous toy factory collaborated with WWF to decrease 10.000 tones of carbon positive. 10.000 tones of carbon positive is equal to 2.000 cars that pollutes the earth. Lego cuts off 10% carbon emission from their very big factory

 

BCA

Culture is what makes a country differs from others. Culture is a pride and always has to be preserved and kept very well. Indonesia is famous for many different cultures within. One of Indonesia’s culture is wayang. Wayang is a traditional puppet show which develops around Java and Bali. BCA as one of many banks Indonesia that has played important role in Indonesia’s economic development makes a csr activity that pays tribute to local culture. The program is called BCA untuk Wayang Indonesia. This program introduces wayang to many younger generations, so it could always be be preserved and kept.

 

Google

Google as a leading search engine in this world makes a campaign called Google Green. The campaign itself mainly voices public to use resources efficiently and support renewable power.

 

There are several things we learn from conducting CSR such as building the culture of do good for good cause, engage with employees as their explore their interests, and build trust through customer involvement. There are also several things to bring to notice as we commit such as conducting CSR on regular or annual basis, let the employees lead, and to get feedback. Above all, we can start small and we can start as soon as possible. It is the time for you to decide.