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Course : Corporate Social Responsibility (1508CSR04)

elearning.lspr.edu
Master of Arts in Communication : Corporate Communication Studies

LSPR eLearning Program

Session Topic : Progress Review Exercise


Course: Corporate Social Responsibility
By Ida M. Bayuni, M.M.

Content

Part 1

Donations Best Practice

Part 2

Corporate Philanthropy

Part 3

Community Development

Part 4

CSR Law in Indonesia

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Part1: Donations Best Practice

Progress Review: Companies & CSR Law in Indonesia

Progress Review
1. Companies
a. Donating the most through giving programs
Doing,
b. Corporate philanthropy right
c. Community development
2. CSR Law in Indonesia

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Examples of Companies: Walmart Stores

I. Donations Best Practice


Examples of Companies
Top 10 Most Donations forbes.com
1. Walmart Stores
Total cash donations: $311,607,280
Giving as a percentage of pre-tax profit: 1.3%
Philanthropic priorities:
a. Food Security
b. Environmental Sustainability
c. Womens Issues
d. Community Development
Corporate giving program highlight:
After employees volunteer 25 hours with an
organization,
Walmart provides a volunteer grant of $250 to
that organization
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Examples of Companies: Wells Fargo

2. Wells Fargo
Total cash donations: $275,478,175
Giving as a percentage of pre-tax profit: 1%
Philanthropic priorities:
a. Homeownership & small businesses
b. Environmental sustainability
c. Education Initiatives
d. Affordable Housing

Corporate giving program highlight:


Wells Fargo matches,
dollar-for-dollar,
employees donations to accredited public or
private educational institutions &
educational foundations

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Examples of Companies: Chevron

3. Chevron
Total cash donations: $274,348,743
Giving as a percentage of pre-tax profit: 0.6%
Philanthropic priorities:
a. Public Health
b. Community Development
c. Education Initiatives

Corporate giving program highlight:


Each current employee can request
up to $10,000 in matching donations per
year while
retirees can request up to $3,000 annually.

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Examples of Companies: Goldman Sachs

4. Goldman Sachs
Total cash donations: $262,580,983
Giving as a percentage of pre-tax profit: 2.3%
Philanthropic priorities:
a. Womens Issues
b. Small Businesses
c. Military Veterans
d. Education Initiatives
Corporate giving program highlight:
Since 2008,
Goldman Sachs has committed,
in excess of $1.6 billion
to philanthropic initiatives.

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Examples of Companies: ExxonMobil

5. ExxonMobil
Total cash donations: $227,487,934
Giving as a percentage of pre-tax profit: 0.3%
Philanthropic priorities:
a. Math & Science Education
b. Womens Issues
c. Public Health
d. Education Initiatives
Corporate giving program highlight:
Many of ExxonMobils corporate giving programs
are
not only open to current employees but also to:
a. Spouses,
b. Retirees, &
c. Surviving spouses
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Examples of Companies: JPMorgan Chase & Co.

6. JPMorgan Chase & Co.


Total cash donations: $210,908,786
Giving as a percentage of pre-tax profit: 0.8%
Philanthropic priorities:
a. Community Development
b. Small Businesses
c. Military Veterans
d. Environmental Sustainability
Corporate giving program highlight:
Teams of 3 or more employees or,
retirees who volunteer together are
eligible for team volunteer grants
based on the combined volunteer hours.

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Examples of Companies: Bank of America

7. Bank of America
Total cash donations: $166,453,414
Giving as a percentage of pre-tax profit: 5.4%
Philanthropic priorities:
a. Community Development
b. Affordable Housing
c. Education Initiatives
d. Food Security
Corporate giving program highlight:
Current employees & spouses can request
up to $5,000 in matching donations per year.

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Examples of Companies: Johnson & Johnson

8. Johnson & Johnson


Total cash donations: $157,168,000
Giving as a percentage of pre-tax profit: 1%
Philanthropic priorities:
a. Public Health
b. Womens Issues
c. Education Initiatives

Corporate giving program highlight:


J&J donates $2 for every $1,
current employees donate
to eligible nonprofits.

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Examples of Companies: General Electric

9. General Electric
Total cash donations: $154,800,000
Giving as a percentage of pre-tax profit: 0.9%
Philanthropic priorities:
a. Public Health
b. Education Initiatives
c. Disaster Relief
d. Human Rights
Corporate giving program highlight:
General Electric,
created the worlds first matching gift program
&
matches employee donations up to $50,000
per year
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Examples of Companies: Target

10. Target
Total cash donations: $148,597,737
Giving as a percentage of pre-tax profit: 3.2%
Philanthropic priorities:
a. Education Initiatives
b. Public Safety
c. Food Security
d. United Way
Corporate giving program highlight:
Target has donated,
nearly $1 billion dollars
towards education initiatives.

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Part2: Corporate Philanthropy

Corporate Philanthropy: People, Planet, Profit

II. Corporate Philanthropy


5 Companies Doing Corporate Philanthropy Right:
1. Apple
2. Google
3. Microsoft
4. PepsiCo
5. Shell
Triple Pundit:
a. People
b. Planet
c. Profit

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Corporate Philanthropy: Apple

1. Apple
a. In 2011,
Tim Cook Apple CEO designed a
program
to match employee donations.
b. The company matched over $25
million worth of employee
donations
c. The result:
more than $50 million for charities
around the world.

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2.Google
a. More than 6,500 Google
employees volunteered nearly
80,000 hours of service.
b. In total,
Google has matched $21 million
in employee donations
to over 9,000 organizations
worldwide
(70 cities & more than 40
countries)

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Corporate Philanthropy: Microsoft

3. Microsoft
a. Their giving program since 1983
raised over $1 billion for
their matching gifts.
In
b. 2005 they began to do a
volunteer match program.
c. 2014 over 86,000
organizations in more than
125 countries received
technology donations

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4. PepsiCo
a. Pepsi offers to match gifts up to
$10,000 per year per employer
b. Matching at a 2:1 ratio if the
employee volunteers more than
50 hours with a single
organization,
otherwise, Pepsi matches 1:1
c. Philanthropy priorities related
causes:
1) Healthy lifestyles,
2) Affordable nutrition,
3) Access to clean water,
4) Sustainable agriculture,
5) Job readiness,
6) Empowering women.
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Corporate Philanthropy: Shell

5. Shell
a. Has been a long-standing philanthropic relationship,
donating more than $24.8 million dollars to the
University of Texas,
in 2012 signed a five-year $7.5 million deal
with UT to address challenges
facing the growing worldwide oil & gas
industry.
b. To empower employees, Shell offers a matching
gift program.
The company matches employee donations
between $25 & $5,500 at a 1:1 ratio
c. At end 2014, Shell donations helped to create
more than 35,000 jobs,
saved 6.2 million metric tons of CO2, &
raised $5 billion for organizations in four
continents
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Part3: Community Development

Community Development: Companies Doing Community Development

III. Community Development


Comdev
a. bukanlah barang baru &
sudah banyak dilakukan sejak lama oleh banyak kalangan, &
menghasilkan banyak varian.
b. mempunyai misi yg mulia yg,
intinya adalah membantu masyarakat yg
kurang baik menjadi lebih baik

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Community-Driven Development: Definition

Community Development
Defn: A participatory development
strategy
Participation defined as:
A process through which
stakeholders influence & share
control over
their own development
initiatives, decisions & resources.
The World Bank - 1994

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1. Pertamina
a. Comdev program has been
implemented since 2004,
providing assistance to surrounding
communities.
b. The program contributes,
to the improvement of peoples lives
as well as
advances in the education field.
c. Other areas such as,
1) Health,
4) Nature
2) Religious,
conservation,
3) Public
5) As well as
infrastructure, &
disaster relief.

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Community Development: Indo Tambangraya Megah

2. Indo Tambangraya Megah


Empowerment program consists of 5 major
areas for development:
1. Economic,
2. Educational,
3. Health,
4. Social &
5. Cultural
Enviromental Program highlight:
Implementation of various infrastructure
projects

Perusahaan
sebagai
fasilitator
Community
Consultative
Pemerintah Committee
(Musyawarah
Masyarakat
Rencana
Pembangunan)

The companys,
responsibility to the surrounding community as well as participation in
preparing
the community towards sustainable community.
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Community Development: Vale

3. Vale
Assisting local community,
to obtain better & quality education,
for them to pursue compulsory education &
provide opportunities to the students to exploit their talent & interests.
Apart from developing sustainable education infrastructure & human resources,
the company provides scholarships to various students:
a. Diploma,
b. Undergraduate,
c. Master degree,
d. Doctoral degree &
e. Medical specialist

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Part4: CSR Law in Indonesia

CSR: CSR di Indonesia

1. Setiap perusahaan,
terutama yg lokasinya berdampingan dgn masyarakat dituntut utk
meminimalisir dampak2 negatif yg timbul akibat
adanya perusahaan serta aktifitasnya, dampak terhadap masyarakat &
lingkungan sekitar perusahaan
2. Perusahaan dianjurkan berupaya melakukan usaha,
mengeliminir hal negatif menjadi hal2 yg berdampak positif
terhadap kondisi masyarakat & lingkungan sekitar perusahaan

CSR,
juga merupakan satu bentuk tanggung jawab & kepedulian perusahaan
bukan hanya terhadap masyarakat sekitarnya,
juga terhadap masyarakat luas & konsumen yg menggunakan produknya,

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CSR: CSR di Indonesia (Lanjut)

Perusahaan,
tidak semata memikirkan sisi keuntungan finansial,
namun juga peduli membantu, memberikan dampak positif secara sosial,
ekonomi, &
lingkungan kepada eksternal khususnya masyarakat sekitarnya
Undang2 utk CSR:
UU No
a. 40 tahun 2007 tentang Perseroan Terbatas (PT.) pasal 74
b. 25 tahun 2007 tentang Penanaman Modal pasal 15, 17 & 34

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CSR: UU PT No. 40 Tahun 2007 Pasal 74

Ayat
a. (1)
Perseroan yg menjalankan kegiatan
usahanya di bidang dan/atau
berkaitan dgn sumber daya alam,
wajib melaksanakan tanggung jawab
sosial & lingkungan.
b. (2)
Tanggung jawab sosial & lingkungan
sebagaimana dimaksud pada ayat (1)
merupakan,
kewajiban perseroan yg dianggarkan &
diperhitungkan sebagai biaya perseroan
yg pelaksanaannya dilakukan dgn
memperhatikan kepatutan &
kewajaran.
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c. (3)
Perseroan yg tidak
melaksanakan kewajiban
sebagaimana dimaksud
pada ayat (1),
dikenai sanksi sesuai dgn
peraturan perundangundangan
d. (4)
Ketentuan lebih lanjut
mengenai tanggung jawab
sosial & lingkungan
diatur dgn Peraturan
Pemerintah

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CSR: Penanaman Modal > UU No. 25 Tahun 2007 Pasal 15 & 17

1.
a.
b.
c.
d.
e.

Pasal 15. Setiap penanam modal berkewajiban:


Menerapkan prinsip tata kelola perusahaan yg baik,
Melaksanakan tanggung jawab sosial perusahaan,
Membuat laporan tentang kegiatan penanaman modal, &
Menyampaikannya kepada Badan Koordinasi Penanaman Modal,
Menghormati tradisi budaya masyarakat sekitar lokasi kegiatan usaha
penanaman modal, &
f. Mematuhi semua ketentuan peraturan perundang-undangan
2. Pasal 17. Penanam modal,
yg mengusahakan sumber daya alam yg tidak terbarukan wajib
mengalokasikan dana secara bertahap utk
pemulihan lokasi yg memenuhi standar kelayakan lingkungan hidup,
yg pelaksanaannya diatur sesuai dgn ketentuan peraturan perundangundangan

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CSR: Penanaman Modal > UU No. 25 Tahun 2007 Pasal 34

3. Pasal 34
1. Badan usaha atau usaha perseorangan,
sebagaimana dimaksud dalam Pasal 5 yg tidak memenuhi kewajiban
sebagaimana ditentukan dalam Pasal 15
dapat dikenai sanksi administratif berupa:
a. Peringatan tertulis,
b. Pembatasan kegiatan usaha,
c. Pembekuan kegiatan usaha dan/atau fasilitas penanaman modal atau,
d. Pencabutan kegiatan usaha dan/atau fasilitas penanaman modal.
2. Sanksi administratif,
sebagaimana dimaksud pada ayat (1) diberikan oleh instansi atau
lembaga yg berwenang sesuai dgn ketentuan peraturan perundangundangan.
3. Selain dikenai sanksi administratif,
badan usaha atau usaha perseorangan dapat dikenai sanksi lainnya
sesuai dgn ketentuan peraturan perundang-undangan.
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CSR: CSR di Indonesia (Lanjut)

a. Dgn adanya UU tersebut,


tentunya bisa dilihat juga sebagai bentuk kewajiban formal atau tanggung
jawab secara hukum dari perusahaan kepada negara,
yg artinya setiap perusahaan yg tidak melaksanakan CSR maka akan
mendapat sanksi
b. CSR merupakan salah satu bentuk dari usaha pemberdayaan masyarakat
c. Di luar CSR yg dilakukan oleh perusahaan,
kegiatan pemberdayaan masyarakat juga dilakukan oleh Lembaga
Swadaya Masyarakat (LSM) & bahkan pemerintah,
yg bisa jadi sangat berbeda sistem, isi & kegiatannya dgn CSR

Best Practice Examples:


Donations, Philanthropy, Community Development, CSR Law
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Course : Corporate Social Responsibility (1508CSR04)

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