111125 nk cect usakti csr and the third sector final


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111125 nk cect usakti csr and the third sector final

  1. 1. Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that  Contributes to sustainable development, health and the welfare of society;  Takes into account the expectations of stakeholders;  Is in compliance with applicable law and consistent with international norms of behavior; and  Is integrated throughout the organization and practiced in its relationships. 2(Adapted from “ISO 26000: Guidance on social responsibility ,” 2010 )
  3. 3. Transform- Elementary Engaged Innovative Integrated ing • Focus on jobs, • Companies begin • Companies begin • Companies begin • Full disclosure of profits, and to introduce to pay real to integrate their what is happen- paying taxes with philanthropy and attention to business models ing within the a legal some degree of stakeholders more holistically company compliance environmental • Adopt a more with corporate including orientation management responsive citizenship negative • Since there is no • Leadership stance to activities information via corporate becomes aware stakeholders with • Responsibility social reports citizenship of the need for a programs based management • “Changing the strategy, “social license to on their interests • Leadership game” by leadership tend operate” and needs begins to creating new to be out of touch • Still reactive • Willingness to understand that ventures or with issues and rather than engage with reputation crucial markets that have relationships proactive CSOs and NGOs to success and pro-social tend to be • Begin that have that corporate benefits unilateral communicating concerns about citizenship is • Engage with wide • When issues with CSOs and the business’ integral part in range of civil arise from the NGOs on a practices developing society. societal domain project basis • Willingness to reputation Governmental they tend to react rather than begin being more • Incorporate and non- defensively and systematically transparent external governmental communicate and strategically through public assurance such enterprises unilaterally multiple bottom- as responsibility • Leading on line reporting auditing by sustainability and outside agencies business-society relationships(“The Paradoxes in Communicating Corporate Social Responsibility,” Sandra Waddock and Bradley K. Googins in “The Handbook of 4Communication and Corporate Social Responsibiliy” – Øivind Ihnen, Jennifer L. Bartlett and Steve May [eds.], 2011)
  4. 4. Chapter I Article 1 Paragraph 3Social and environmental responsibility is thecommitment of corporations to participate insustainable economic development toimprove the quality of life and theenvironment in ways that are beneficial to thecorporation itself, the local communities aswell as society at large. 5
  5. 5. Chapter V Article 74 2) Social and environmental1) Corporations in the business responsibility as stipulated under of and/or whose business paragraph 1) is a corporation’s obligation that is budgeted and relate to natural resources treated as costs of the corporation must conduct social and and implemented with due environmental responsibility consideration of propriety and reasonableness3) Corporations that neglect 4) Further legislation on social their obligation as stipulated and environmental under paragraph 1) will be responsibility will be sanctioned under the established in a Government prevailing laws Regulation 6
  6. 6. After more than 3 years, the implementing regulations asstipulated under Article 74 paragraph 4) are yet to be issued, in themeantime various government bodies at central and regionallevels are taking matters into their own hands, e.g.: East Java government preparing Regional Regulation (PERDA) to levy 2.5% of company profits for welfare in the name of CSR Minister for Improvement of Underdeveloped Regions targets 65% from “CSR funds” Minister for State-owned Enterprises to draft regulations for “CSR funds” to promote sports and arts Minister for Home Affairs to draft laws on a forum for management of CSR in the regions under his auspices 7 7
  7. 7. Stakeholder engagement involves dialogue between the organization and one or more of its stakeholders Stakeholder engagement can take many forms – it can begin as a response by an organization to one or more stakeholders and can take place in informal or formal settings Stakeholder engagement should be interactive and is intended to provide opportunities for stakeholders’ views to be heard – its essential feature is that it involves two-way communication(Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 2010 ) 8
  8. 8. Level of Engagement Methods of Engagement Consult  Surveys  Focus groups Limited two-way engagement: organization  Meetings with selected stakeholder/s ask questions, stakeholders answer  Public meetings  Workshops  Online feedback mechanisms  Advisory committees Negotiate  Collective bargaining with workers through their unions Involve  Multi-stakeholder forums Two-way or multi-way engagement:  Advisory panels learning on all sides but stakeholders and  Consensus building process  Participatory decision making process organization act independently  Focus groups  Online feedback schemes Collaborate  Joint projects  Joint ventures Two-way or multi-way engagement : joint-  Partnerships learning, decision making and actions  Multi-stakeholder initiatives Empower  Integration of stakeholders into governance, strategy and operations management New forms of accountability; decisions delegated to stakeholders; stakeholders play a role in governance(“AA1000 Stakeholder Engagement Standard 2011 – Final Exposure Draft,” – AccountAbility, 2011) 9
  9. 9. Membership Vision Mission ToEstablishment Toward Currently To be a end sixty leading contribute 1998, initia domestic advocate of towards lly in companies good creation of response and sub- corporate good to the sidiaries of citizenship corporate Financial multi- in citizenship Crisis nationals in Indonesia and to Indonesia and be develop the recognized capacity of for it its develop- ment partners, in cl. corp- orations, S MEs, gover nment and CSOs 10
  10. 10. Youth Young CSR for SME Eco-Business Entrepre- Better Enabling nomic Ethics neurs Life Network Empow- Start-up erment Bi-annual International CEO Network Conference on CSR 11
  11. 11. Menara Karya, 10th Floor Suite HJl. HR Rasuna Said Blok X-5 Kav. 1-2 Jakarta 12950 – INDONESIA T: +6221 5794 4694 F: +6221 5794 4696 info@kiroyan-partners.com www.kiroyan-partners.com