Indonesian Political, Business & Finance News

CSR may be debatable, but not the recipients

| Source: JP

CSR may be debatable, but not the recipients

Rudijanto, Contributor, Jakarta

"Help me, I want to get well," reads a brochure featuring
seven-year-old Faizal, a leukemia patient at Jakarta's Cipto
Mangunkusumo General Hospital (RSCM).

His sad and tired eyes staring out of the "Let's Cure the
Children" brochure distributed by PT Prudential Life Insurance
(Prudential) reflect prolonged suffering as well as bewilderment.

Faizal may not understand why he must be confined to a
hospital bed for over a month while other children of his age can
attend school or play hide-and-seek in the playground.

Diagnosed with leukemia when he was very young, the suffering
Faizal has endured is unimaginable. His open-eyed expression
appears to ask, "Why do I have this frightening disease?"

Not even his parents are able to answer this painful question.
A contract teacher at a high school in the capital, his father
Rahmat Mustaqim is as confused as Faizal. Although he has no
permanent job, Rahmat has tried his best to mitigate the agony of
his first and only son.

Faizal is just one of many children born to economically
challenged families who have not only been painfully separated
from the typical joys of childhood, but also face a life-and-
death struggle against the scariest disease of all -- cancer --
at a too-young age.

There is hope, however, and among those children who can
expect help from generous donors include three-year-old Rifqy and
five-year-old Aldi, who have leukemia, and three-year-old Faisal
and six-year-old Mangihut, who have neuroblastoma.

Without proper medical treatment, these children will not live
long. They represent 11,000 others who are diagnosed every year
with various forms of cancer -- within a population of 220
million. Cancer is responsible for 10 percent of child deaths in
Indonesia.

Faizal, Rifqy, Aldi, Faisal and Mangihut are among the lucky
few who have been taken under the wings of the Indonesian
Childhood Cancer Foundation (YOAI). The foundation has been able
to procure assistance from some sponsors, including large
corporations such as Prudential, through its Corporate Social
Relations (CSR) program.

The CSR concept has become a hot topic in academic circles,
with academics debating the effectiveness of any CSR program with
regards the bottom line or the companies' image. Others
apparently disregard CSR programs as a form of camouflage to
conceal any violations committed by major corporations in their
profit-seeking business activities.

Whatever their motives in carrying out the CSR programs,
Faizal and other ailing children may have only a straightforward
response -- "thank you" or "thank God".

However, a seriously and professionally planned CSR program
will render a broader impact, not only on those directly and
actively involved in the program, but also on the national and
global economy.

Chadd McLisky, president director of Jakarta-based management
consultancy Indo Pacific, said excellent CSR programs actually
needed thorough, conscientious planning.

"We see there are many companies prepared to give to their
local communities, but in an ad hoc manner. You cannot do this.
Careful planning must be considered and you need to determine
what the community needs, not what the company thinks may be
needed," McLisky said.

Without careful planning and real, heartfelt commitment,
McLisky said a CSR program would be merely a top-down commitment,
such as off-the-cuff donations to support local communities.

"Here lies the difference in CSR and local sponsorship: Open
dialogue and research in the community's needs is a must.
However, many companies that claim to have CSR programs are more
sponsorship programs and not true CSR," he added.

Furthermore, Chadd elaborated, companies did not need to
assume that they needed to channel extensive funds toward CSR. He
emphasized that no matter what size the company -- large or small
-- if they wanted to put in the commitment, they could have a
good CSR program.

"Firstly, they need to have the total commitment of the most
senior management, and secondly, they need a policy. What we see
is that many companies are giving on an ad hoc basis to whoever
asks them for funding, thinking that they are 'well-doers',"
McLisky said.

In spite of the newness and imperfectness of this concept to
some local companies, major corporations such as American Express
(Amex), Hitachi and cigarette producer Dji Sam Soe have shown
serious planning in their CSR programs.

In its Positive Youth program, the Amex Foundation has forged
a partnership with local foundation Mitra Mandiri to contribute
to equipping secondary school students in Jakarta with
entrepreneurship skills.

So far, Amex and Mitra Mandiri provide instruction to about
500 junior high school students in painting ceramics and related
business concepts, including developing marketable designs,
calculating unit costs, pricing and the market for painted
ceramic products.

Amex kicked off the Positive Youth program in October as an
extracurricular activity. Channeling US$25,000 to fund the
training, Amex ensures the continuity of the program by
rechanneling the money made from sales of student-painted
ceramics into the program.

Another carefully planned CSR program with a long-term goal is
the Hitachi Young Leaders Initiative (HYLI). Conducted since
1996, HYLI holds a week-long gathering for 24 selected students
from six Asian countries -- Indonesia, Japan, Malaysia, the
Philippines, Singapore and Thailand.

Held annually in one of the participating countries, HYLI aims
to develop future leaders, focusing on university students who
exhibit potential, by broadening their views on current issues
through discussion. The program also aims to promote mutual
understanding and harmony in the region and to instill a unique
sense of Asian values and solidarity.

The seriousness of this initiative is reflected in the list of
prominent regional figures from governments, businesses and
academia who have spoken at an HYLI gathering. Previous speakers
include Thai Minister of Science, Technology and Environment Dr.
Arthit Ourairat, and Hiroshi Yasuda, Professor of Research Centre
for Advanced Science & Technology (RCAST) of the University of
Tokyo.

Dji Sam Soe has targeted the empowerment of small- and medium-
scale enterprises (SMEs). Forging a cooperation with the Tempo
Media Group, the cigarette giant initiated the Dji Sam Soe Award
(DSS Award) for SMEs, which aims to recognize and inspire
millions of SMEs throughout Indonesia.

Out of 198 candidate SMEs for the DSS Award 2005, only nine
will be shortlisted as finalists, of which three will be declared
winners in February 2005. The winning three will be selected for
their implementation of good corporate governance principles.

"Many studies have shown that SMEs have been resilient and
capable of moving the real sector. We want to recognize them and,
hopefully, this step will be followed by efforts to develop and
empower the SMEs here," said Dji Sam Soe Senior Brand Manager
Rusni Kartina.

The CSR concept and its implementation may be far from
perfect, but some of the activities carried out by companies may
come with a silver lining. However, only with more critical
assessments and evaluations from all sides will CSR evolve into a
true vehicle of contributing to the betterment of the world.

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