20100609

Corporate Social Responsibility in Indonesia

Corporate Social Responsibility (CSR) is one kind of continuos commitment holding by some companies, doing ethical behavior, and giving contribution to economic growth that can increase the quality of life of the employees and their families, local communities, and the society (CSR : Meeting Changing Expectations, 1999). In my opinion, CSR was purposed to minimaze the negative effects that was caused by operational activities and maximum positive effects, so that the economic growth can be developed based on the stability of economic, social environment, and the value itself was granted for many sides, namely the companies themselves and the society. In 2008, I have a research about it with my friend in senior high school that make me know more how important CSR for the society in many objects. There are many objects of CSR, such as economic, cultural, social, education, etc. Two main objects of CSR in Indonesia are education and social.

Firstly, education came as the major priority of CSR. The low grade of education in a country will potentially cause the late of the development itself. Limitations in getting better quality of education were merely caused by financial reason. Thus, the existence of CSR could simply make it easier for the society to get better quality of education; by helping the government and the society to supply the facilities for education, CSR has proved their potentional power in developing the educational system in Indonesia. CSR in educational system in Indonesia has been committed by some powerful companies, such as Telkom, PT HM. Sampoerna, and PT Pertamina. For current example, PT HM. Sampoerna is giving some scholarships for undergraduated students in ITB and UI for the period of 2009-2013. The other example, PT Bank CIMB Niaga is giving 40 scholarships for students who have outstanding performance when they were in senior high school.

Then, social came as the second major priority of CSR. The reality showed that Indonesia’s social aspects needed to be repaired for a balance situation, such as empowerment of poor family. The form of CSR in social side was proved by giving some facilities for stockholders and stakeholders. That was like the society empowerment in Small and Medium Enterprises (SMEs), and provided the general facilities for society. PT Tempo was one of the companies that gave 1 Billion Rupiahs for the victims of Tsunami disaster. Corporation must be care to the society as one of their stakeholders.

In summary, CSR as a productive program which held by some powerful companies has given many positive supports for the society and the government in helping to develop Indonesia to be an advanced country by giving some aids in education and social sides. The benefits of CSR have been used by the society, the government, and the company itself in long period. Based on the descriptions and the examples above, we could get clear information about the functions of CSR. It has given us positive influences in viewing and developing the educational system, namely in increasing the quantity and the quality of education; also, giving some eases in accessing the facilities of education. In addition, in social side, CSR has provided many social facilities in improving the society to be the better one.

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