Standardization of CSR practices proposed

Standardization of CSR practices proposed

The Jakarta Post, Jakarta

As corporate social responsibility (CSR) programs become more
popular among private firms in the country, the availability of a
general guideline is therefore pivotal to ensure the proper
implementation of such programs.

In light of this, Business Watch Indonesia (BWI), with the
help of other non-governmental organizations and a number of
corporations, has drawn up a formula to help standardize CSR
practices to improve the social and environmental conditions
where a company operates, it was revealed on Tuesday.

"Indonesia needs to develop standardization of CSR practices
because that is one way to improve the quality of life in society
as well as the environment in this country," BWI managing
director Henry Heyneardhi explained during a discussion at The
Jakarta Post on Tuesday.

"On the part of the companies, they can't avoid the current
global trend that people prefer to buy products from companies
that have good CSR activities."

A previous report at the Post citing "The Millennium Poll on
CSR" survey amongst over 25,000 citizens across 23 countries
revealed that 60 percent of the respondents were influenced by
CSR-related factors when stating impressions of companies and 40
percent were influenced by brand or corporate image.

Therefore, BWI research coordinator Domi S. Wermasubun said
standardization was vital to assure the public that CSR was more
than merely a community development program and philanthropy but
also ethical business conduct.

The standardization is also crucial to improve the
understanding of the practices.

At present, most companies associate CRS practices only with
charities and community-related development programs.

"That is why BWI has formulated a draft of CSR
standardization, wherein the content regulates employment
practices, environment and public health issues, as well as
consumption and consumer affairs," he said, adding that the draft
referred to the United Nations conventions and other
international treaties.

A senior official of the National Standardization Agency,
Tengku A.R. Hanafiah, said CSR standardization would be a huge
step for this nation's business community because at the same
time the International Organization for Standardization (ISO) had
prepared a working group to formulate a global standardization of
social responsibility.

"It will be issued as ISO 26000 in the next three years," he
said.

A report from ISO's website says that the organization has
embarked on its first ever multi-stakeholder standard-setting
process with the aim of creating the ISO 26000 Guideline for
Social Responsibility. Work on this began in 2005 and the results
are expected in 2008.

Meanwhile, a director of the Indonesian Olefin and Plastics
Industry Association Yoesoef Santo said that companies would
fully support the CSR standardization as long as it could help to
prevent conflicts among stakeholders of companies.

"It should aim to create a better working environment among
owners, employees and the community in which the companies
operate," he said.

Fitrian Ardiyansah of the Indonesian branch of the World Wild
Fund for Nature said the establishment of common guidelines for
CSR programs could be a first step to make them mandatory. (006)