CSR gaining acceptance among business community
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.