Corporate Social Responsibility Policy (part II)

by | Nov 26, 2019 | Insight

Firmansyah

Firmansyah

Program DIrector

Corporate Social Responsibility (CSR) policies are guidelines that must be obeyed in formulating strategies and taking actions to achieve company goals. The principle value in formulating CSR policies is empowerment. Therefore, the substance of CSR policy is not only concerned with harmonizing the company and the community, but also structured efforts to encourage community independence.

The principle of CSR policy formulation places a harmonious condition is not an objective but rather the implication of a balanced functional relationship between the company and the community. In substance, there are at least two things 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 (CDO) or other names for analyzing the rationality of actions in achieving goals. Second, the policy contains the areas where CSR programs are implemented.

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

  1. Describe a clear direction about the future conditions to be achieved (clarity of direction)
  2. Respond to problems or strategic issues in the company environment or in other designated areas
  3. Accompanied by a more operational explanation so that it is easy to be used as a reference for the formulation of strategies and programs (articulate)
  4. 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 the regional development plan and social mapping. And the input from the global agenda can be seen from several international situations, such as the Sustainable Development Goals (SDGs), SR 7 Core Subject (ISO 26000), COP 21 and COP 22 and Nawacita.

 

Vision and mission of the company

The CSR policy based on the company’s vision and mission that revealed into policies, roadmaps, short-term, medium-term and long-term programs / activities. Programs are created and implemented based on the planning and measurement of the needs of stakeholders, CSR programs and activities which designed starting from the analysis stage needs, implementation, monitoring, evaluation, and termination. So that CSR program that run can be used as an indicator of success or failure of the company, because CSR has become a subsystem that supports the sustainability of the company’s business.

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

CSR Strategic Plan is not a Corporate Strategic Plan. The Company’s Strategic Plan contains a general description of the company’s overall planning, covering all areas of activity that are the company’s mandate. The CSR Strategic Plan specifically discusses the company’s strategy in carrying out its mandate in the field of social responsibility. The scopes of the CSR Strategic Plan is not as extensive as the Company’s Strategic Plan, but between these two documents are interrelated because the CSR Strategic Plan certainly considers the company’s internal conditions 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 plans in Regional Development Plans (short term, medium term and long term), it is very possible for companies to be involved in contributing for regional development through CSR programs, including aspects of community development, the environment, occupational health and safety, labor and cooperation mechanisms in implementing CSR programs.

With the existence of regional development plan documents, it is expected that the implementation of CSR can be integrated with local governments, so that the programs that are implemented can increase the acceleration of regional development.

 

REFERENCES

  1. Constitution number 19 of 2003 concerning SOEs.
  2. Constitution number 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 Number 5 of 2011 concerning Rating Program for the Performance of Companies in Environmental Management. SOE Ministerial Decree No KEP-117 / M-BUMN / 2002 July 31, 2002 Regarding the Implementation of Good Corporate Governance (GCG) Practices

 

* The writer is a CSR Consultant & social planner