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)