Corporate Social Responsibility Policy

by | Mar 15, 2019 | Insight

Firmansyah

Firmansyah

Program Director, Filantra

Corporate Social Responsibility (CSR) policy is a guideline that must be adhered to in formulating strategies and taking actions to achieve company goals. The value that becomes the principle of CSR policy making is empowerment. Therefore, the substance of CSR policy does not only concern the harmonization between the company and the community, but a structured effort to encourage community independence.

The principle of CSR policy formulation places harmonious conditions not an objective but the implications of a balanced functional relationship between the company and society. In substance, there are at least two things that are regulated in the policy. First, related to issues that are the focus of CSR attention, priority issues in this policy form the basis for Community Development Officers (CDOs) or other names to analyze the rationality of actions in achieving goals. Second, the policy contains the area where the CSR program is implemented.

Policies are the basis for clarifying strategies so that they are more specific / focused, concrete and operational. Therefore, policies are arranged in each unit. For companies that have policies at the corporate level, they need to contextualize according to the conditions in each unit. Good CSR policy criteria, namely:

Describe a clear direction about the future conditions to be achieved (clarity of direction)
Responding to problems and / or strategic issues in the company environment or in other areas that have been determined
Accompanied by more operational explanations so that it is easily used as a reference for the formulation of strategies and programs (articulative)
In line with the company’s vision and mission

To develop contextual and strategic policies, there are at least 4 documents that can be input, namely: the company’s vision and mission, regional development plans, social mapping and the international agenda. Among the four documents, 2 documents represent the local context, namely development and social mapping plans. While input from the global agenda can be seen from several international situations, such as the development agenda of the Sustainable Development Goals (SDGs), SR 7 Core Subjects (ISO 26000), COP 21 and COP 22 and Nawacita.

 

Vision and mission of the company

Corporate Social Responsibility (CSR) policies based on the company’s vision and mission are derived into policies, roadmaps, short-term, medium-term and long-term programs / activities, programs are created and implemented based on the planning and measurement of stakeholders’ needs, CSR programs and activities are designed starting from the analysis phase needs, implementation, monitoring, evaluation, and termination, so that the CSR program implemented can be one indicator of the success or failure of the company, because CSR has become a subsystem that supports the sustainability of the company’s business.

 A CSR planning document that will become a guideline about what will be done in order to carry out its social responsibilities, within a certain duration of time. This planning is commonly referred to as Strategic Planning (Renstra) CSR, which is basically the first step to measuring company performance in carrying out its social responsibilities.

 

Renstra CSR is not the Corporate Renstra. The Corporate Renstra contains an overview of overall corporate planning, covering all areas of activity that are the company’s mandate. The CSR Renstra specifically discusses the company’s strategy in carrying out its mandate in the field of social responsibility. The scope of the CSR Renstra is not as broad as the Corporate Strategic Plan, but between these two documents are interrelated because the CSR Renstra certainly considers the internal conditions of the company and the needs of other parties to be served by the company.

 

Regional Development Plan

Regional development plan documents can be accessed at each local government site or Regional Development Planning Agency (BPPD), in the process of formulating regional development planning in the Regional Development Plan (short term, medium term and long term), it is very possible to involve companies in contributing for regional development through CSR programs, covering aspects of community development, environment, occupational health and safety, labor and cooperation mechanisms in the implementation of CSR programs.

 

With the regional development plan document, it is expected that the implementation of CSR can be integrated with the regional government, so that the programs implemented can increase the acceleration of regional development.

 

 

References:

  1. Law No. 19 of 2003 concerning SOEs.
  2. Law No. 40 of 2007 concerning Limited Liability Companies.
  3. Government Regulation No.47 of 2012 dated April 4, 2012 concerning Social and Environmental Responsibility.
  4. Regulation of the Minister of Environment No. 5 of 2011 concerning the Program for Rating of Company Performance in Environmental Management. Decree of the Minister of BUMN No. KEP-117 / M-BUMN / 2002 dated July 31, 2002 concerning Implementation of Good Corporate Governance (GCG) Practices