The chairman opens the 4th Indonesia Business Links conference on CSR. [1] He notes mixed feelings as Indonesia's economy and democracy have improved but CSR is still misunderstood as charity. [2] The conference theme, "Beyond CSR: A Way of Life", emphasizes ethics and values within companies. [3] Stakeholder engagement and good governance are core to CSR but neglected in Indonesia where it is seen as donations for officials' projects rather than social wellness.

1. OPENING SPEECH
CHAIRMAN, INDONESIA BUSINESS LINKS
4TH IBL CONFERENCE ON CSR - “BEYOND CSR: A WAY OF LIFE”
JAKARTA, MARCH 13, 2013
Selamat Pagi – Good morning Ladies and Gentlemen,
Six and a half years ago, on September 7 – 8, 2006 Indonesia Business Links
conducted its first international conference on Corporate Social Responsibility. It is
with mixed feelings that I welcome you today to the fourth such event in Jakarta. To
those coming from other places or faraway countries, welcome to Jakarta, I hope
your stay here is fruitful and pleasant. Of course I extend a warm welcome to my
fellow Jakarta residents too.
I mentioned earlier about mixed feelings because on the one hand Indonesia
is such a better place these days with the economy in relatively good shape and
democracy well entrenched. On the other hand, with respect to Corporate Social
Responsibility not much has changed, there is still a great deal of misperception
about CSR that is very often regarded as synonymous with corporate giving for
charity. This is harmless compared to other misperceptions.
While there is nothing wrong with charitable deeds by companies, this is not
what CSR is about. Just don’t call it Corporate Social Responsibility. This is the
reason why I wholeheartedly support the theme chosen by the Board of
Management and the secretariat: “Beyond CSR: A Way of Life” emphasizing the
importance of ethics and internalization of values supporting and reinforcing social
responsibility within companies and among executives managing companies.
Stakeholder engagement is a much neglected subject while it is really at the
core of Corporate Social Responsibility, particularly within the framework of ISO
26000 on Social Responsibility that IBL supports and bases its advocacy and
activities on. As I have said many times before on various occasions, companies –
no matter how large – cannot and should not – be held responsible for the wellbeing
of the entire society. It is through the work with their respective stakeholders that
companies realize their social responsibility.

2. As importantly, good governance that used to be a separate issue from
Corporate Social Responsibility according to ISO underpins and permeates the other
core subjects that constitute social responsibility, respectively Human Rights, Labor
Practices, The Environment, Fair Operating Practices, Consumer Issues and
Community Involvement and Development.
Within the Indonesian context, “social” is often understood in the connotation
of providing assistance to the needy, in other words, charity, which might have given
rise to the misperception that CSR is about providing donations. We must emphasize
that “social” within the context of CSR relates to the wellness of human society in a
broad sense. Social responsibility is the individual corporation’s commitment to be
useful in many ways to society at large by working with its stakeholders in an ethical
manner. Ethical behavior is at the heart of CSR. It certainly defies the purpose of
CSR if companies cheat on taxes while at the same time initiate costly social
initiatives in the name of CSR, just to name an example.
Having most, if not all companies, big and small become good corporate
citizens will ultimately benefit the entire society, as this is combined with the jobs
created, products and services provided, and taxes paid by companies. Society will
be better for all concerned if companies adhere to good corporate governance.
I need to reiterate the interpretation of “social” in the context above because
there are deplorable developments that we need to watch closely. It is a well-known
fact that many government officials see CSR as the source of funds for everything
they don’t have the budget for or insufficiently so.
On a regular basis we read statements of this sort in the newspapers,
reinforcing the sense of CSR as corporate donations because in most cases mention
is made of “CSR Funds” to pay for everything, ranging from relocation of small
vendors and selection of government officials to developing remote areas. These
may lead to serious concerns relating to both public and corporate governance and
should therefore not be taken lightly. The business world must say loud and clear
that there is no such thing called “CSR Funds” that government officials can tap into.

3. Equally distressing is the draft CSR Law that purportedly is being prepared.
Article 74 in the Law on Limited Liability Companies No. 40/2007 is source of
concern enough, but the new draft will specifically regulate what CSR is all about –
definitely not referring to ISO 26000 that the Indonesian government has actually
endorsed. Companies must hold together and if necessary undertake joint action to
counter negative trends. IBL together with KADIN Indonesia and many business
associations have done so in the lead-up to enactment of Law No. 40/2007.
I am very pleased that over the years membership of IBL has evolved very
positively. More and more companies join forces as corporate supporters of IBL,
domestic and multinational companies alike have seen the benefits of IBL
membership and collective action for the benefit of society in many ways.
After conducting similar workshops since 1999, in 2004 IBL has entered into
cooperation with the Corruption Eradication Commission or KPK in Indonesian. It is
nine years ago that KPK and IBL embarked jointly on workshops against corruption,
on how to do business without resorting to bribery. This cooperation is alive and well,
the most recent workshop was conducted just a few weeks ago. At each of these
workshops a very senior KPK official attends and shares useful tips on conducting
business in an ethical manner – thereby avoiding being investigated by the KPK.
The fight against corruption is part of CSR, it is part of the United Nations
Global Compact and within ISO 2600 it is specifically addressed in the core subject
Fair Operating Practices. Corruption is not only a breach of the laws but also socially
irresponsible because it is disruptive and creates discontent as well as undermines
legal institutions and law enforcement. The wellness of society is definitely not being
served by corrupt practices.
All the issues I mentioned above and more will be discussed during the next
two days. I hope you will benefit from all these discussions and sharing of insight and
experience among practitioners and theorists alike. Please do not hesitate
expressing your views and interacting with other participants in a mutual sharing that
will enhance the understanding of each of us about Corporate Social Responsibility.
Mutual enrichment in knowledge and understanding is an objective of the conference
that will lead to better implementation of CSR ethically.

4. Ladies and Gentlemen,
I wish all of you two productive days of networking and experience-sharing
with fellow participants and resource persons at the 4th International Conference on
CSR hosted by Indonesia Business Links.
NOKE KIROYAN