CSR gaining acceptance among business community

Debbie A. Lubis, Contributor, Jakarta

The concept of corporate social responsibility (CSR) has started to gain acceptance among the business community in Indonesia.

In the global economy, corporations are no longer evaluated in terms of financial performance alone, but also on their social and environmental performance.

Although they have not yet fully adopted the concept of CSR, many local companies have begun to pay serious attention to the need to protect the environment and to support local communities.

Companies such as mobile phone distributor Nokia Mobile Phones Indonesia, tap water company PT Thames PAM Jaya (TPJ) and pharmaceutical company Roche Indonesia have, for example, allocated large amounts of money to finance their community development programs.

Nokia Mobile Phones Indonesia recently launched a community development program focusing on the environment and educating children about nature conservation.

The program, Nokia Connects with Nature, aims to increase the awareness and understanding of how young people can help to protect orangutans, one of Indonesia's most loved and endangered species.

"The number of orangutans is swiftly declining because their habitat is being destroyed by illegal logging and forest fires. We strongly feel that we have to protect them. We also believe that educating young kids can 'buy' more time for these great apes to live in their habitat," said Regina Hutama, the company's marketing communications manager.

Today, it is estimated that there are about 65,000 orangutans living in the wild in Sumatra and Kalimantan, a drastic decrease from about 315,000 in the 1900s. That figure could drop by over 80 percent in the next 20 years if deforestation continues unchecked.

Together with Yayorin, a non-governmental organization (NGO) that focuses on nature conservation work to protect the habitat of the orangutan, Nokia Indonesia has hosted three educational field trips since May 2004 for students living in Pangkalan Bun, Central Kalimantan. The program is called Conservation Education with Nokia.

The program, which will last until May 2005, involves 20 students each field trip. Under the supervision of Yayorin, they study and explore the Tanjung Puting National Park in Central Kalimantan. The students also visit an education center and observe the life of orangutans at Camp Leakey in Tanjung Puting.

As the part of the Nokia Connects with Nature campaign, the company recently organized the Week of Environmental Concern Nokia-Yayorin from Aug. 2 to Aug. 8. The event aimed to increase awareness of the need to preserve the forest and all of the creatures in the national park, especially the orangutans.

A series of environmental-themed competitions and activities, including a poster-drawing contest, an environmental debate and an environmental cleaning competition, were held as part of the event.

"We disbursed Rp 100 million in funds for education support, field trips and an awareness week in Pangkalan Bun," Regina said.

Nokia's CSR work includes various activities through its social program Nokia Helping Hands, through which the company organized a food bazaar with the funds that were raised going to several orphanages in Jakarta last year.

And through the auction of a first-edition Nokia 7200, three children's hospitals in Jakarta received financial support. An auction of 10 new Nokia mobile phones also collected money for the Tuberculosis Foundation. Nokia Indonesia also donated 1,000 trees to Surabaya's regreening program on the city's anniversary.

Promoting environmental awareness is also a concern of PT Thames PAM Jaya (TPJ), a partner of city-owned tap water company PDAM Jaya in the distribution of potable water to residents in eastern Jakarta. The company routinely holds student visits to its water treatment plant in Buaran.

"They can see how the water is treated and distributed. This initiative is designed to increase awareness of the importance and value of water, so that they can be more responsible citizens in the future," said Devy A. Yheanne, the company's PR manager of external relations.

The company has also conducted group discussions with teachers to develop new modules for environmental-education programs for students

Some educational projects have also been created by TPJ, including TPJ's Young Environmentalist of the Year Awards for youths aged 8 to 16, which were held from June to August this year. The company has also taken community leaders, NGO activists, academics and journalists on trips along the city's rivers to learn about the economic costs of water, raw water sources, water quality and pollutants.

The company has also supported clean water infrastructure facilities for residences in East Cakung, jointly with the Ministry of Resettlement and Regional Infrastructure, including the provision of water tanks, inexpensive new water connections and water hydrants.

It also completed in 1999 a network upgrade of the 9.1- kilometer main pipeline in North Jakarta to distribute clean water to residents in Marunda, home to more than 10,000 people whose main occupations are farming, fishing and casual labor.

The project has dramatically improved the quality of life of the people in the area. Previously, women had to queue for water at water terminals or pay water carriers to deliver 20-liter cans of water to their homes for Rp 500 to Rp 700 per can.

The piped water supply to each home has increased water use from 10 liters per person per day to about 130 liters, with a cost of Rp 1,000 per day compared to an average of Rp 3,000 previously.

Empowering the community is also the main concern of pharmaceutical firm PT Roche Indonesia. With the help of students and experts from the School of Public Health, University of Indonesia, the company runs a special health care program for the residents living near its plant in Cisalak, near Bogor.

"We do not design charity programs. We focus more on the empowerment of the community so that once this program is over, the community can run it themselves," said Lucia Erniawati, Roche's corporate communications executive.

After almost three years, the program, known as "Healthy Village 2003" has proven to be effective. The residents of Cisalak neighborhood are able to manage their own working group on waste management and women's groups for a healthy environment and empower social volunteers for health facilities like the Integrated Health Center (Posyandu).

The company then decided to continue the program with another one known as "Healthy Cisalak", which is aimed more at promoting environmental health, preventing the transmission of disease and improving nutrition, and mother and child health.

In the field of education, Roche Indonesia also runs the "Pharma Tour" program, which provides opportunities for high school and college students to visit the company's plant as well as participate in the apprenticeship program at the company plant or offices, or in the field. Every year, up to 700 students visit the plant and up to 60 students gain places in the apprenticeship program.

"Starting with the small things can make us play an active role as an industrial player. Hopefully, this initiative will also encourage many other firms to actively develop their CSR programs," Luci said.

Education and health are also main concerns of publicly listed company PT Bank Central Asia (BCA). Titled Bakti BCA, the company's CSR programs provide non-degree accounting courses (PPA) for high school graduates who cannot go on to higher education due to financial constraints. They do not have to pay school fees -- in fact, BCA gives them an allowance. As of December 2003, the PPA had graduated 200 alumni.

The bank has works together with around 15 universities and educational institutions to provide scholarships for students in need. Through its Teller Apprenticeship Program, many high school graduates gain the chance of acquiring on-the-job experience.

In Gunungkidul, Central Java, Bakti BCA has helped 6 elementary schools, 3 junior highs, and 1 high school in renovating classrooms, providing extra books and library, equipment for extracurricular activities, computer labs for junior highs and high schools, and training for teachers overseeing the computer labs and extracurricular activities. It also helps 5 elementary schools and 2 junior high schools in Lampung province.

Since 1991, BCA has organized blood donation drives in cooperation with the Indonesian Red Cross (PMI). This activity is held periodically, around 3 to 4 times per a year. And in 2002, BCA provided free cataract operations to less-fortunate residents of Kalianda district, Lampung.