~CORPORATE SOCIAL RESPONSIBILITY -- Sept 4

~CORPORATE SOCIAL RESPONSIBILITY -- Sept 4

;JP;
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CSR-corporate-program

How can a company grow by giving back?

Elvera N. Makki
Jakarta

Ironically, this is still a question frequently asked not only
by new emerging companies but also by big multinational ones,
amid the era of what we call corporate social responsibility
(CSR).

Nowadays people talk about it although some have no clue as to
what it is and how to implement it properly, and how to make it
in line with corporate business objectives.

In the United States, the CSR concept has been deeply rooted
in the life of the people. According to the U.S-based Natural
Marketing Institute, almost 90 percent of the American people
believe in the importance of corporations paying attention to
their impact on the environment and society rather than solely
focusing on profit.

According to the survey made by the institute, 70 percent of
consumers say they prefer to buy products produced by companies
that pay serious attention to CSR activities, and nearly 50
percent stated that they would be more likely to buy stocks from
such companies, rather than from those which do not really care
much about the impact of their operations on the environment.

Larry Parnell, the principal of Canada-based Nomad Strategic
Communications has said that most businesses, not just natural
resources-based companies, need social license to operate and
expand. The social license can be obtained only if the companies
have a strong commitment to protecting the environment and the
society from the impact of their business activities.

In Indonesia, the concept of CSR is considered new although it
has actually been implemented here for a long time, such as
through donating food from employees to an orphanage; fund-
raising to donate consumer goods or clothes in the fasting month.

There are, however, weaknesses in those activities; first, the
programs only gives momentarily support and there is almost no
long-term benefit in it.

The type of help the company provides should be toward
sustainability; that way, there will be strong engagement between
the company and the community around it, thus, a company and its
stakeholders.

One bad example of what corporations did was when they tried
to take the advantage of the tsunami tragedy in order to boost
their image.

Second, a good reputation cannot be achieved over night. It
requires continuous commitment from the company's management and
employees. Just giving food or clothing especially on a once-off
basis will not enhance the company's image in the long term.

With that in mind, one of the key ingredients in formulating
CSR programs is to firstly make it a business priority and make
it a part of a comprehensive communication strategy. Public
relations as the communicator should lead the way in doing and
communicating the programs effectively.

Some corporations, both local and foreign, reluctantly
communicate their social programs to the public and stakeholders,
partially due to a belief that doing good expects no reward
hence, no communication is needed. Of course such a perception is
misleading.

This can be due to a lack of creativity in packaging the
programs and the medium in sharing the information. CSR programs
should be done seriously, innovatively and with full commitment
over the long term so that they are strong enough to draw public
attention.

Why is it so important to communicate CSR activities to
others? Ditta Amarhoseya, Corporate Affairs Head of Citibank in
Indonesia, has said that communication is a huge part of
conducting CSR programs because the audience has the right to
know what the company is doing for the community, especially if
the company invites its customers to be involved in donating
funds to, for example, communities affected by the tsunami.
She says that communicating CSR activities can create a snowball
effect where people, including prospective employees or potential
investors who read or hear about the programs may be encouraged
to do the same and be part of the company.

The basic principle in CSR programs is to create long-term CSR
activities in order to achieve the maximum impact for both the
company and community.

She notes that it took approximately five years for Citibank
to achieve recognition from the public and its stakeholders for
its CSR activities under the umbrella of Citibank Peka (Peka is
an acronym of peduli (care) and berkarya (to do good). The word
peka itself means to be sensitive).

Initiated in February 1999, Citibank Peka (CP) focuses on
education, communication development and natural disaster relief.

Another good example of a corporation that takes CSR seriously
is PT Astra International (Astra).

The setting up of Posko Banjir Astra (Astra Flood Post) in
some key places during the massive floods in 2001 created an
immediate and tremendous awareness among Jakartans.

Astra has developed comprehensive CSR programs ranging from
community development, providing loans for SMEs, focusing on
environmental, health and safety issues to giving scholarships
and automotive entrepreneurship training.

One thing that needs to be improved is the provision of
regular and current updates on its CSR programs to stakeholders,
"That is what I see lacking in Astra and other major
corporations," says a CSR consultant Eva Muchtar.

So how to measure the success of CSR programs?

Logically, the measurement will be how far the expectations
agreed upon are executed and whether the programs were completed
according to the plan or not.

Parnell has suggested corporations start developing
comprehensive CSR programs by conducting a thorough audit of the
needs facing their communities; making resource commitments
consistent with their business skills and corporate strategy; to
follow through and then communicate the results both within and
outside the organization.

CSR will do absolutely no harm to a company's reputation (as
long as it is done ethically), employee morale, product sales or
market valuation to use CSR guidelines as a leading indicator of
what investors, the government and the general public expect of
corporation today.

In the long run, the corporations may well benefit as much as
the people and communities their support.

Remember, actions do speak louder than words.

The writer is a full time member of Public Relations Society
of America. She can be reached at blossomveras@yahoo.com