Comdev program: Purely philanthropic or business as usual?

A. B. Susanto, Managing Partner, The Jakarta Consulting Group

One of the first questions that may arise in regards Community Development (Comdev) programs is the motivation that prompted a company to carry out such a program.

Is the program purely philanthropic? Of course not.

As a profit-oriented organization, a company naturally expects to derive some benefits from this program, though not financially: A favorable corporate image must be its aim.

In this context, the community and the company will be placed in a mutualistic existence, attaining a balance of benefits via the Community Development program.

Community- and business-oriented benefits are produced from strategic philanthropy, which blends pure philanthropy and a corporate approach.

Society now faces a deluge of positive and negative information from various sources, and has at its disposal increasingly sophisticated science and technology. This situation has encouraged the shaping of more logical, perceptive thought and a new lifestyle, as well as increasing public demand. In turn, this has fueled the emergence of a new consumer drive, vigilante consumerism.

Consumers of this type are concerned not only with the fulfillment of their immediate needs, but also with the creation of long-term prosperity. A company, in their view, should also pay attention to human rights, the environment and Community Development.

The change in the people's expectation for a company will certainly lead to a change in the level of competition -- which is why corporate social responsibility (CSR) is becoming more and more important.

Today, financial performance is no longer the sole measure used by stakeholders, shareholders and consumers to assess a company's achievements. A company is also expected to perform in nonfinancial fields such as human rights, business ethics, environmental protection and social welfare.

A recent survey shows that consumers expect to see companies make social contributions, and tend to determine purchases upon this factor -- a trend that is expected to become more common in the future.

Roper Search Worldwide said about 75 percent of its survey respondents preferred to buy products marketed or produced by companies that made real contributions to Community Development. About 66 percent of respondents also said they were ready to switch to other brands from companies with a publicly recognized social image.

Although the implementation of this corporate social responsibility may foment a new breed of competitiveness, it may also destroy a company's image if it is not managed well.

In reality, social responsibility is not confined to financial support only, as a company's Community Development efforts will also entail the use of other resources such as time, technology, information, human resources and corporate clout.

Social commitment may be realized in various forms, for example, participation in educational development, construction of public facilities, provision of training facilities for small- scale businessmen, opening up employment opportunities and providing career counseling services. Corporate executives may also be tapped for their expertise in various non-profit projects.

Several major points may be used as a basis for action in the implementation of corporate social responsibility via Community Development programs. The first is professionalism, in the sense that social commitment must be implemented seriously, as are other business activities. A company must set a concrete target, then monitor and evaluate the results of a program.

Social responsibility must be exercised consistently in a sustainable manner, and should not be allowed to degenerate into a mere fad -- it must be a sincere effort.

Present-day consumers are more critical in analyzing the purpose of activities carried out by a company. Any suspicions harbored by consumers about a particular project may bring about adverse effects on the company's reputation.

A company must also be selective in choosing Community Development and social welfare programs that are compatible with its business activities and profile.

For example, a re-greening program would seem ridiculously incongruous if it was implemented by a company that has never tried to lower the level of pollution caused by its production process. Social responsibility must be manifested through a Community Development program appropriate to the company.

A company must realize that a mutuality is expected of Community Development programs: The local community hopes a company will help them solve their problems, while a company hopes for fair treatment and support from locals.

Therefore, a company must explore its relationship with the local community and identify critical points that may hamper harmonious and mutually beneficial relations. Only then can the company formulate ways to respond to the community's needs.

Toward this end, a Community Need Analysis must be undertaken to identify the real needs of the community -- not what they want, which may very well be superficial and short-term. In addition, such an analysis must be conducted without bias, so that it does not favor the company's wishes or those of certain community figures.

The acronym DISCUSS -- Development, Involve, Socialize, Cater, Utilize, Sensitive and Socialize -- sums up the essential aims of a good Community Development program.

The Jakarta Consultant Group's Community Development Cycle provides a framework for implementing a Community Development program, beginning with a Community Need Analysis. This is followed by concept development involving the target community, which instills in them a sense of belonging and active participation in the program.

The next step is to socialize and cater to the identified needs by utilizing local resources. It must be remember that sensitivity must be inherent throughout the program, while the program itself must be socialized to external parties.

Last, but not least, the program must be audited to ensure it is on the right track.

Empowerment is inherent to Community Development. Deliberation -- an approach characteristic to Indonesian culture -- is useful in exploring the needs and in identifying problems with the direct participation and consultation of the local community. This, in turn, will provide a sense of ownership in the program, which will be transferred eventually to the full responsibility of the community.