Wed, 01 Dec 2004

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.