~CORPORATE SOCIAL RESPONSIBILITY -- Sept 4<\/p>\n
;JP;
\nANPAd..r..
\nCSR-corporate-program<\/p>\n
How can a company grow by giving back?<\/p>\n
Elvera N. Makki
\nJakarta<\/p>\n
Ironically, this is still a question frequently asked not only
\nby new emerging companies but also by big multinational ones,
\namid the era of what we call corporate social responsibility
\n(CSR).<\/p>\n
Nowadays people talk about it although some have no clue as to
\nwhat it is and how to implement it properly, and how to make it
\nin line with corporate business objectives.<\/p>\n
In the United States, the CSR concept has been deeply rooted
\nin the life of the people. According to the U.S-based Natural
\nMarketing Institute, almost 90 percent of the American people
\nbelieve in the importance of corporations paying attention to
\ntheir impact on the environment and society rather than solely
\nfocusing on profit.<\/p>\n
According to the survey made by the institute, 70 percent of
\nconsumers say they prefer to buy products produced by companies
\nthat pay serious attention to CSR activities, and nearly 50
\npercent stated that they would be more likely to buy stocks from
\nsuch companies, rather than from those which do not really care
\nmuch about the impact of their operations on the environment.<\/p>\n
Larry Parnell, the principal of Canada-based Nomad Strategic
\nCommunications has said that most businesses, not just natural
\nresources-based companies, need social license to operate and
\nexpand. The social license can be obtained only if the companies
\nhave a strong commitment to protecting the environment and the
\nsociety from the impact of their business activities.<\/p>\n
In Indonesia, the concept of CSR is considered new although it
\nhas actually been implemented here for a long time, such as
\nthrough donating food from employees to an orphanage; fund-
\nraising to donate consumer goods or clothes in the fasting month.<\/p>\n
There are, however, weaknesses in those activities; first, the
\nprograms only gives momentarily support and there is almost no
\nlong-term benefit in it.<\/p>\n
The type of help the company provides should be toward
\nsustainability; that way, there will be strong engagement between
\nthe company and the community around it, thus, a company and its
\nstakeholders.<\/p>\n
One bad example of what corporations did was when they tried
\nto take the advantage of the tsunami tragedy in order to boost
\ntheir image.<\/p>\n
Second, a good reputation cannot be achieved over night. It
\nrequires continuous commitment from the company's management and
\nemployees. Just giving food or clothing especially on a once-off
\nbasis will not enhance the company's image in the long term.<\/p>\n
With that in mind, one of the key ingredients in formulating
\nCSR programs is to firstly make it a business priority and make
\nit a part of a comprehensive communication strategy. Public
\nrelations as the communicator should lead the way in doing and
\ncommunicating the programs effectively.<\/p>\n
Some corporations, both local and foreign, reluctantly
\ncommunicate their social programs to the public and stakeholders,
\npartially due to a belief that doing good expects no reward
\nhence, no communication is needed. Of course such a perception is
\nmisleading.<\/p>\n
This can be due to a lack of creativity in packaging the
\nprograms and the medium in sharing the information. CSR programs
\nshould be done seriously, innovatively and with full commitment
\nover the long term so that they are strong enough to draw public
\nattention.<\/p>\n
Why is it so important to communicate CSR activities to
\nothers? Ditta Amarhoseya, Corporate Affairs Head of Citibank in
\nIndonesia, has said that communication is a huge part of
\nconducting CSR programs because the audience has the right to
\nknow what the company is doing for the community, especially if
\nthe company invites its customers to be involved in donating
\nfunds to, for example, communities affected by the tsunami.
\n She says that communicating CSR activities can create a snowball
\neffect where people, including prospective employees or potential
\ninvestors who read or hear about the programs may be encouraged
\nto do the same and be part of the company.<\/p>\n
The basic principle in CSR programs is to create long-term CSR
\nactivities in order to achieve the maximum impact for both the
\ncompany and community.<\/p>\n
She notes that it took approximately five years for Citibank
\nto achieve recognition from the public and its stakeholders for
\nits CSR activities under the umbrella of Citibank Peka (Peka is
\nan acronym of peduli (care) and berkarya (to do good). The word
\npeka itself means to be sensitive).<\/p>\n
Initiated in February 1999, Citibank Peka (CP) focuses on
\neducation, communication development and natural disaster relief.<\/p>\n
Another good example of a corporation that takes CSR seriously
\nis PT Astra International (Astra).<\/p>\n
The setting up of Posko Banjir Astra (Astra Flood Post) in
\nsome key places during the massive floods in 2001 created an
\nimmediate and tremendous awareness among Jakartans.<\/p>\n
Astra has developed comprehensive CSR programs ranging from
\ncommunity development, providing loans for SMEs, focusing on
\nenvironmental, health and safety issues to giving scholarships
\nand automotive entrepreneurship training.<\/p>\n
One thing that needs to be improved is the provision of
\nregular and current updates on its CSR programs to stakeholders,
\n\"That is what I see lacking in Astra and other major
\ncorporations,\" says a CSR consultant Eva Muchtar.<\/p>\n
So how to measure the success of CSR programs?<\/p>\n
Logically, the measurement will be how far the expectations
\nagreed upon are executed and whether the programs were completed
\naccording to the plan or not.<\/p>\n
Parnell has suggested corporations start developing
\ncomprehensive CSR programs by conducting a thorough audit of the
\nneeds facing their communities; making resource commitments
\nconsistent with their business skills and corporate strategy; to
\nfollow through and then communicate the results both within and
\noutside the organization.<\/p>\n
CSR will do absolutely no harm to a company's reputation (as
\nlong as it is done ethically), employee morale, product sales or
\nmarket valuation to use CSR guidelines as a leading indicator of
\nwhat investors, the government and the general public expect of
\ncorporation today.<\/p>\n
In the long run, the corporations may well benefit as much as
\nthe people and communities their support.<\/p>\n
Remember, actions do speak louder than words.<\/p>\n
The writer is a full time member of Public Relations Society
\nof America. She can be reached at blossomveras@yahoo.com<\/p>",
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