Comdev program: Purely philanthropic or business as usual?
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.