This document discusses corporate social responsibility (CSR) programs of state-owned enterprises from a good governance perspective. It provides background on CSR and good governance principles in Indonesia, including transparency, accountability, and participation. As a case study, it examines CSR programs implemented by PT. INHUTANI I, a forestry company, for communities near its worksites in Berau Regency, Indonesia. The study aims to evaluate the effectiveness of CSR programs in partnership and community development and how they align with good governance. Qualitative research methods, including interviews and observations, are used to assess the roles of different actors and challenges in implementing CSR according to good governance.
IOSR Journal of Business and Management (IOSR-JBM) is an open access international journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Corporate Social Responsibility Model Based On “Tri Hita Karana” Cultureinventionjournals
This research was conducted with the background of the CSR activities that are usually done by the company including the BPR industry. So far, CSR has not been adjusted to the values of local wisdom. One of the values of local wisdom in Bali that can be adopted by companies is the cultural value THK. Therefore, this study has the objective to explain the model of CSR-based cultural values THK. This study used a qualitative approach using key informants are stakeholders of the BPR industry, consisting of: the director of BPR, BPR commissioner, banking analyst, cultural experts, and academics. The number of informants there are as many as 15 people. The results showed that the BPR in Bali has implemented CSR activities such as: providing funding punia to pretend, to invite employees to tirta yatra, took off in the days of Hinduism, planting trees, using conditioned taste, using office facilities friendly environment, provide a decent salary, give a reasonable interest rate, giving social assistance to orphanages / nursing, until there doing house renovation. The various CSR activities when combined with cultural concepts THK then be grouped into parahyanganbased CSR, CSR-based pawongan, and CSR-based palemahan. All this THK-based CSR activities have a positive impact for all stakeholders BPR industry in Bali, such as: maintenance of harmonious relations with the BPR employees, customers and the surrounding community, the preservation of the natural environment is good, and the increased performance of BPR.
Bangladesh is one of the world’s poorest countries. That’s why the CSR activities is very much important of this country in different areas.
There are so many company or industries are present in the country which contributes a lot of donation in different areas and private bank is one of them and the contribution by commercial banks to CSR activities is very significant in different areas such as:
health sector,
education sector,
disaster management,
Sports,
IOSR Journal of Business and Management (IOSR-JBM) is an open access international journal that provides rapid publication (within a month) of articles in all areas of business and managemant and its applications. The journal welcomes publications of high quality papers on theoretical developments and practical applications inbusiness and management. Original research papers, state-of-the-art reviews, and high quality technical notes are invited for publications.
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Corporate Social Responsibility Model Based On “Tri Hita Karana” Cultureinventionjournals
This research was conducted with the background of the CSR activities that are usually done by the company including the BPR industry. So far, CSR has not been adjusted to the values of local wisdom. One of the values of local wisdom in Bali that can be adopted by companies is the cultural value THK. Therefore, this study has the objective to explain the model of CSR-based cultural values THK. This study used a qualitative approach using key informants are stakeholders of the BPR industry, consisting of: the director of BPR, BPR commissioner, banking analyst, cultural experts, and academics. The number of informants there are as many as 15 people. The results showed that the BPR in Bali has implemented CSR activities such as: providing funding punia to pretend, to invite employees to tirta yatra, took off in the days of Hinduism, planting trees, using conditioned taste, using office facilities friendly environment, provide a decent salary, give a reasonable interest rate, giving social assistance to orphanages / nursing, until there doing house renovation. The various CSR activities when combined with cultural concepts THK then be grouped into parahyanganbased CSR, CSR-based pawongan, and CSR-based palemahan. All this THK-based CSR activities have a positive impact for all stakeholders BPR industry in Bali, such as: maintenance of harmonious relations with the BPR employees, customers and the surrounding community, the preservation of the natural environment is good, and the increased performance of BPR.
Bangladesh is one of the world’s poorest countries. That’s why the CSR activities is very much important of this country in different areas.
There are so many company or industries are present in the country which contributes a lot of donation in different areas and private bank is one of them and the contribution by commercial banks to CSR activities is very significant in different areas such as:
health sector,
education sector,
disaster management,
Sports,
THE INFLUENCE OF PERFORMANCE AND POLICY OF LOCAL INSTITUTIONS AS WELL AS COMM...IAEME Publication
The history of settlements development began with a set of settlements in a small scale, then along with the population growth in the urban area. Latter, it developed into a medium city and eventually developed into a big city. The objectives of this study were to analyze the performance and policies, also the community participation on the growth of slums in the urban area and to analyze the slum factors in the growth of slums in urban area. Data collected from 250 respondents from 2 sub-districts of 14 sub-districts, namely Panakukang Sub-district and Mariso Sub-district. The method of discussion employs a statistical approach, Structural Equational Modeling-Partial Least Square (SEM-PLS). The results of the analysis show that 1) the path coefficient of institutional performance on the institutional policy was 0.735 with t-statistic 20.2356 (p <0.05), it means that the performance aspects significantly influenced policy; 2) the path coefficient of institutional performance on community participation was 0.162 with t-statistics 2.037 (p <0.05), it means that the aspects of performance significantly influenced community participation; 3) The path coefficient of institutional policy on the community participation was 0.640 with t-statistic 8.635 (p <0.05), it means that the policy had a significant effect on community participation; 4). the path coefficient of institutional performance on slums factors was 0.063 with t-statistics 0.611 (p> 0.05),
International Journal of Business and Management Invention (IJBMI) inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Present Scenario of Corporate Social Responsibilities in BangladeshMasum Hussain
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
It is mandatory for companies to conform to the legal responsibilities as they are prescribed by law. So, organizations have no alternative but to comply with the basic law of the land. On the other hand, Ethical responsibilities of corporations are taken as additional responsibilities going beyond legal compliance and profit making and include those that firms believe are the right things to do. Ethical responsibility originates from humanistic, religious and moral orientation of corporations. The voluntary responsibilities to the society refer to the discretionary nature of obligations rooted in the altruistic principles which are not required by law. The motivation for such sense of responsibilities arises from the reciprocal obligation of giving back to the society in exchange of profit and power that companies receive from society. This school of thought gave rise to CSR which is seen as continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, local community, and society at all, including the environment. Even though Bangladesh is one of the world’s poorest countries, CSR activities in Bangladesh have risen significantly in importance. It is believed that the interest in CSR initiatives in Bangladesh has been fueled by MNCs’ global activities.
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
CSR at TATA Motors and Wipro_MMS_finance_03_social_projectABIAUGUSTINE1
This project report is the result of the learnings and techniques adopted by Abi Augustine during his winter project program which is a subject of Mumbai University MMS Semester IV.
The inspiration for this project titled “A Case Study On The Corporate Social Responsibility Of The Selected Indian Companies’’ is to study about the Corporate social responsibility of the selected Indian Companies and to make a highlight of the activities done by them in 2019 and also to make a comparison between the two.
Corporate Social Responsibility prevailed in India for a long time but it was considered as a part of philanthropy or charity. With the advent of Corporate Social Responsibility provisions, it has got the legal framework and is become a duty of the corporates to give back from the profits to the society, for the betterment and improvement of the society. With due consideration to the fact that “profitability” is the primary force and motivation for all the development on this front. Due to this the cut-throat competition increased between business and to then differentiate themselves companies are using the Corporate Social Responsibility provision to create a brand image and to gain loyal customers by putting light on the initiatives taken by them and how they are giving back to the society. Companies cannot rule out the fact that they survive because of the society and therefore equivalent importance should be given to the society as they do to their businesses. Thus the study has revealed that companies use their Corporate Social Responsibility policy to increase their profits.
Tata Motors and Wipro Limited
Provisions for Corporate Social Responsibility in Companies Act, 2013RHIMRJ Journal
CSR as a concept has attracted worldwide attention and acquired a new resonance in the global economy Heightened
interest in CSR in recent years has stemmed from the advent of globalisation and international trade, which has reflected in
increased business complexity and new demands for enhanced transparency and corporate citizenship. Moreover, while
Governments have traditionally assumed the sole responsibility for the improvement of the living conditions of the population,
society’s needs have exceeded the capabilities of Governments to fulfill them. In this context, the spotlight is increasingly
turning to focus on the role of business in society and progressive companies are seeking to differentiate themselves through
engagement in what is referred to as CSR. The Companies Act, 2013 has taken one step ahead and introduced mandatory
provisions in the field of CSR. Though many believe that concerns on the new company law are manifold and it is a bold yet
not beautiful step. For instance, India Inc is concerned that the cost of board performance evaluation may outweigh the
benefits for many small companies in this regard. Also, it has concerns about the prospect of an over regulated regime and the
attendant scourge of corruption. Given the advantages and concerns on the new regulations introduced by the new Companies
Act, we all need to wait and watch once the companies start implementing the new provisions and therefore, the practical
aspects and implications will be evaluated thereafter.
THE INFLUENCE OF PERFORMANCE AND POLICY OF LOCAL INSTITUTIONS AS WELL AS COMM...IAEME Publication
The history of settlements development began with a set of settlements in a small scale, then along with the population growth in the urban area. Latter, it developed into a medium city and eventually developed into a big city. The objectives of this study were to analyze the performance and policies, also the community participation on the growth of slums in the urban area and to analyze the slum factors in the growth of slums in urban area. Data collected from 250 respondents from 2 sub-districts of 14 sub-districts, namely Panakukang Sub-district and Mariso Sub-district. The method of discussion employs a statistical approach, Structural Equational Modeling-Partial Least Square (SEM-PLS). The results of the analysis show that 1) the path coefficient of institutional performance on the institutional policy was 0.735 with t-statistic 20.2356 (p <0.05), it means that the performance aspects significantly influenced policy; 2) the path coefficient of institutional performance on community participation was 0.162 with t-statistics 2.037 (p <0.05), it means that the aspects of performance significantly influenced community participation; 3) The path coefficient of institutional policy on the community participation was 0.640 with t-statistic 8.635 (p <0.05), it means that the policy had a significant effect on community participation; 4). the path coefficient of institutional performance on slums factors was 0.063 with t-statistics 0.611 (p> 0.05),
International Journal of Business and Management Invention (IJBMI) inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Present Scenario of Corporate Social Responsibilities in BangladeshMasum Hussain
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
It is mandatory for companies to conform to the legal responsibilities as they are prescribed by law. So, organizations have no alternative but to comply with the basic law of the land. On the other hand, Ethical responsibilities of corporations are taken as additional responsibilities going beyond legal compliance and profit making and include those that firms believe are the right things to do. Ethical responsibility originates from humanistic, religious and moral orientation of corporations. The voluntary responsibilities to the society refer to the discretionary nature of obligations rooted in the altruistic principles which are not required by law. The motivation for such sense of responsibilities arises from the reciprocal obligation of giving back to the society in exchange of profit and power that companies receive from society. This school of thought gave rise to CSR which is seen as continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, local community, and society at all, including the environment. Even though Bangladesh is one of the world’s poorest countries, CSR activities in Bangladesh have risen significantly in importance. It is believed that the interest in CSR initiatives in Bangladesh has been fueled by MNCs’ global activities.
The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage.
Presentation prepared based on the Section 135 of the Companies Act, 2013 , Companies (Corporate Social Responsibility Policy) Rules, 2014 and Revised Schedule VII of the CA 2013.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
CSR at TATA Motors and Wipro_MMS_finance_03_social_projectABIAUGUSTINE1
This project report is the result of the learnings and techniques adopted by Abi Augustine during his winter project program which is a subject of Mumbai University MMS Semester IV.
The inspiration for this project titled “A Case Study On The Corporate Social Responsibility Of The Selected Indian Companies’’ is to study about the Corporate social responsibility of the selected Indian Companies and to make a highlight of the activities done by them in 2019 and also to make a comparison between the two.
Corporate Social Responsibility prevailed in India for a long time but it was considered as a part of philanthropy or charity. With the advent of Corporate Social Responsibility provisions, it has got the legal framework and is become a duty of the corporates to give back from the profits to the society, for the betterment and improvement of the society. With due consideration to the fact that “profitability” is the primary force and motivation for all the development on this front. Due to this the cut-throat competition increased between business and to then differentiate themselves companies are using the Corporate Social Responsibility provision to create a brand image and to gain loyal customers by putting light on the initiatives taken by them and how they are giving back to the society. Companies cannot rule out the fact that they survive because of the society and therefore equivalent importance should be given to the society as they do to their businesses. Thus the study has revealed that companies use their Corporate Social Responsibility policy to increase their profits.
Tata Motors and Wipro Limited
Provisions for Corporate Social Responsibility in Companies Act, 2013RHIMRJ Journal
CSR as a concept has attracted worldwide attention and acquired a new resonance in the global economy Heightened
interest in CSR in recent years has stemmed from the advent of globalisation and international trade, which has reflected in
increased business complexity and new demands for enhanced transparency and corporate citizenship. Moreover, while
Governments have traditionally assumed the sole responsibility for the improvement of the living conditions of the population,
society’s needs have exceeded the capabilities of Governments to fulfill them. In this context, the spotlight is increasingly
turning to focus on the role of business in society and progressive companies are seeking to differentiate themselves through
engagement in what is referred to as CSR. The Companies Act, 2013 has taken one step ahead and introduced mandatory
provisions in the field of CSR. Though many believe that concerns on the new company law are manifold and it is a bold yet
not beautiful step. For instance, India Inc is concerned that the cost of board performance evaluation may outweigh the
benefits for many small companies in this regard. Also, it has concerns about the prospect of an over regulated regime and the
attendant scourge of corruption. Given the advantages and concerns on the new regulations introduced by the new Companies
Act, we all need to wait and watch once the companies start implementing the new provisions and therefore, the practical
aspects and implications will be evaluated thereafter.
Good Governance : Origin, concepts and componentsNayana Renukumar
The presentation speaks about the origin of Good Governance, its major definitions, key components and strategies. The presentations also dwells upon the Good Governance scenario in India as well that in the state of Andhra Pradesh
Community welfare is one of the ultimate goals that is expected by each region. Various efforts have been designed and implemented by the local government to increase the growth for the region itself and subsequently are expected to have a positive impact on the welfare of the community. One of the efforts made by the regional government in the discussions carried out with the implementation of development. This study aims to study the role of the government in CSR implementation programs that have an impact on people's welfare significantly. This research was conducted by using quantitative research methods and using path analysis. The results of the study show that the government rules and implementation of CSR programs are able to improve the welfare of the community of Kampung Warna-Warni Jodipan, Malang.
The Success of Corporate Social Responsibility Program for Steam Power Plant ...AJHSSR Journal
ABSTRACT:Community empowerment through the company's CSR program is expected to improve the
community's quality of life, so it is necessary to evaluate the empowerment program to find out whether the
program has succeeded in achieving the desired benefits. The research aims to evaluate the community
empowerment program of the Indah Jaya Tani Women's Group to find out the company's CSR contribution and
the success of the community empowerment program. The research uses qualitative research methods and
samples/informants are determined using purposive sampling techniques. The data collection methods used in
this research were interviews, observation, and documentation. The data analysis technique is carried out
interactively and consists of three activity components, namely data reduction, data presentation, and conclusion
drawing. Meanwhile, data validation used in this research is source triangulation. The research results show that
the company's CSR contribution to the Indah Jaya Women Farmers Group empowerment program is in the form
of facilities and infrastructure as well as training and mentoring. This empowerment program is by the needs of
the community in Nusa Indah Hamlet so that it can become a sustainable program. The benefits of the
empowerment program have been felt by group members both economically (profit) by providing additional
income, Socially (People) by increasing knowledge and skills, and Environmentally (Planet) by creating better
environmental quality.
KEYWORDS:CSR, Community Empowerment, Program Success, Women Farmer
Report- Impact of CSR on financial performance of the companyBindu Priya Pasham
A team of dedicated professionals from IIM Udaipur, Futurescape and Economic Times have worked on the CSR study of 2015 and has listed India’s top 100 companies for CSR in the year. The top 5 companies and the bottom top 4 companies of the list i.e. 95-99 companies will be considered. The financial data of those companies will be taken and ratios will be performed, so that we come to know whether CSR policy has benefited the companies financially or not.
The Effect of Good Corporate Governance Characteristics on Corporate Social R...AJHSSR Journal
ABSTRACT: Environmental accounting uses all costs incurred by the company through Corporate Social
Responsibility (CSR) funds and recording the use of these funds as the basis for reporting. Disclosure of
Corporate Social Responsibility (CSR) is carried out in order to fulfill the environmental and social interests of
the company in accordance with the Law of the Republic of Indonesia Number 40 of 2007 concerning Limited
Liability Companies. This study aims to analyze the effect of Good Corporate Governance on the Corporate
Social Responsibility Disclosure. This research was conducted on agricultural sub-sector companies listed on
the Indonesia Stock Exchange from 2016-2020. The sample was determined by purposive sampling as many as
75 financial statements as observations. The data analysis technique used is multiple linear regression analysis.
Good Corporate Governance research results have a simultaneous effect on Corporate Social Responsibility,
board of commissioners size, board of directors gender, the proportion of the audit committee, managerial
ownership, and institutional ownership have a positive effect on the Corporate Social Responsibility (CSR)
Disclosure. The implications of this research theoretically provide support for Agency Theory and the findings
of previous studies. Practically, this research has implications for companies in the agricultural sub-sector to
synergize in creating credibility and being accountable to investors, the community, and the government.
KEYWORDS: Good Corporate Governance, Corporate Social Responsibility
A Corporate Social Responsibility, generally noted by “CSR”, refers to a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social well-being. It generally applies to efforts that go beyond what may be required by regulators or environmental protection groups. Governments seeking to advance sustainable development are increasingly turning to policies and strategies that encourage, support, mandate, or directly demonstrate more socially and environmentally sound business practices. A central component of these policies involves promoting increased transparency of economic activities.
Impact of Corporate Social Responsibility on Community Development in Akwa Ib...paperpublications3
Abstract: The study examines the impact of corporate social responsibility on community development in Akwa Ibom State with a particular reference to Julius Berger Company Plc. The study intends to find out how corporate social responsibility activities (basic social amenities, social causes and compensation to community members) enhance community development in Akwa Ibom State the Julius Berger company in Akwa Ibom State claim that they are doing enough in terms of bringing development to the communities as part of their corporate social responsibility, yet the host communities remain hostile and constantly at variance with the company. Point in time data were collected from primary source. The Ordinary Least Square was adopted and finding reveals that corporate social responsibility has significant relationship with community development in Akwa Ibom State. It is therefore recommended that CRS activities like basic social amenities, social causes and compensation to community members and policies regarding these CRS should be improve to enable the Julius Berger company to operate freely in the community and add to their development and CRS activities performed by Julius Berger in Akwa Ibon State should be appreciated by the communities and encouraged them to do more in the future.
The objective of the study is to examined Corporate Social Responsibility Disclosure in quoted money deposit
Banks in Nigeria. The research design used for this study is historical research design. The design was used so as to
capture relevant information from annual financial statement of quoted companies. The population of the study
consists of Twenty one (21) deposit money banks in Nigeria and a sample of eight commercial banks was randomly
selected using convenient sampling technique. Data were analyzed using ordinary least squares regression. The
findings of this research indicate an existence of negative relationship between firm complexity and environmental
disclosed in the Nigerian banking sector. It also indicates the existence of positive relationship between earnings and
CSR disclosure in the Nigerian banking sector and that bank size was negatively related to the extent of corporate
social responsibility disclosure by Nigerian banks. The implication of these findings is that as bank increase its
activities they should also be concern with the well-being of the environment which they operate. Finally, the study
recommends that banks should focus on activities that will synchronize its corporate goals with the sustainability of
the environment
Synergistic Effects of Social-Business on CSR ProgramsQUESTJOURNAL
ABSTRACT: Controversy results of research on the relationship of CSR to the company's performance had resulted a positive and negative effect. It can decrease the motivation of companies in order to develop CSR optimally. This controversy can lead to the implementation of CSR forward facing many obstacles. The results of this literature review aims to provide a strong theoretical basis. Real social mission can provide a synergistic effect, the social mission run by the company through CSR programs is able to support or strengthen the business mission being held by the company or even increase profits. Based on the research of some empirical research, it shows that CSR is applied into a strategy which supports the company's main business activity and also can increase profits for the company. This finding is expected to strengthen the motivation of business practices to be more careful in designing CSR as an appropriate strategy in order to support of the company's main business activities as a synergistic effect socially and businesses.
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
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Memorandum Of Association Constitution of Company.pptseri bangash
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A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
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Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
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Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
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Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
Memorandum Of Association Constitution of Company.ppt
Performing corporate social responsibility of state owned enterprises a good governance perspective
1. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
www.iiste.org
Performing Corporate Social Responsibility of State Owned
Enterprises: A Good Governance Perspective
Budi Pranowo1*, Agus Suryono2, Siti Rochmah2, Ratna Aji Kusuma3
Student of Doctoral Program of Administrative Science, Faculty of Administrative Science, University of
Brawijaya, Jalan M.T. Haryono No. 163 Malang, East Java – Indonesia, Postal Code 65145
2
Department of Public Administration, Faculty of Administrative Science, University of Brawijaya, Jalan M.T.
Haryono No. 163 Malang, East Java – Indonesia, Postal Code 65145
3
Faculty of Social and Political Science, Mulawarman University, Samarinda, East Kalimantan; Guest Lecturer
at Faculty of Administrative Science, University of Brawijaya, Jalan M.T. Haryono No. 163 Malang, East Java –
Indonesia, Postal Code 65145
*
E-mail of corresponding author: budipranowo@ymail.com
1
Abstract
The so-called Corporate Social Responsibility (CSR) is one of a kind of enterprises’ participation in sustainable
development to their surrounding communities. Implementation of CSR programs involved various parties, both
from inside the enterprises (e.g. shareholders, directors, and employees) and from outside the enterprises, i.e. the
stakeholders in a broader sense. The involvement of various stakeholders in the CSR implementation process
was aimed to create efficiency, transparency, and accountability. These three elements are then referred to as the
Good Corporate Governance (GCG). CSR implementation synergy in term of the role of the three actors, namely
the government, enterprises and communities determined the effectiveness of the utilization of CSR funds for
social and economic development of community in the surrounding area(s) of the enterprises.
Keywords: corporate social responsibility, good governance, good corporate governance
1. Background
Corporate Social Responsibility (CSR) is an effort to create and maintain a balance between gaining profit and
performing the functions of social and environmental maintenance (triple bottom line). According to Ambadar
(2008), it appeared that there has been a paradigm shift that the enterprise was no longer just a solely forward
profit orientation, but also that the existence of the enterprise should be able to provide a positive impact to the
welfare of local people in line with the increasingly widespread commitment to implement good governance.
Implementation of good governance is a consequential application of the principles of accountability,
transparency and participation in the implementation of the government's performance, corporate
(enterprise/business), and the community. In the business world this concept came to be known as good
corporate governance.
Through CSR, an enterprise is expected to use part of the profits generated to help [poor] people, especially in
their working area. According to Utomo, et al. (2010), CSR is a company's activities as a form of commitment
and responsibility towards stakeholders (which directly or indirectly related) as well as the surrounding
environment. Under Article 88 of Law No.19 of 2003 on State Owned Enterprises (SOEs), in particular the
provisions concerning the allowance and the use of SOE profits for the purposes of fostering small business and /
or cooperatives and community development around the SOEs, the Minister of State Owned Enterprises issued
Regulation No. PER-05/MBU/2007 on Partnership Program of State Owned Enterprise with the Small Business
and Environmental Assistance Program. Under this rule, each General Enterprises (Perusahaan Umum, Perum)
and Limited Liability Company/Enterprises (Perseroan Terbatas, PT) shall implement partnership programs and
community development programs. However, the implementation of this rule is less a concern of the company,
so there is a negative impact on the company's activities detrimental to the surrounding community. Respond to
this phenomenon, the government requires every company to have a CSR program through Act 40 of 2007 on
Limited Liability Company (LLC), especially in Chapter V Article 74, which regulates social and environmental
responsibility, which among others stated as follows:
(1) The LLC conducting its business activities in the field and/or related to the natural resources is required to
carry out social and environmental responsibility.
(2) Social and environmental responsibility is the obligation of the LLC and calculated as the cost of the
company's implementation which is done with regard to the appropriateness and reasonableness.
(3) That the LLC who did not carry out obligations as mentioned ... shall be liable in accordance with the
provisions of the legislation.
In the context of the implementation of CSR programs, there is synergy between the government, private
(company/business/enterprise), and the community. Through this synergy, CSR is expected to have significant
impact on economic development around the region, and thus may help the government's efforts to empower
35
2. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
www.iiste.org
communities, improve the environment, and reduce poverty. PT. INHUTANI I, a State Owned Enterprise (SOE)
which was established on December 8th, 1973, is one of the SOE who has obligation to implement the
partnership and community development programs. Based on data from the financial statements of partnerships
and community development programs issued per Desember 31st, 2008, PT. INHUTANI I have been
implementing various partnerships programs with small businesses and cooperatives, which reside in Balikpapan,
Sangkulirang, and Berau.
In this study, Berau Regency of East Kalimantan Province of Indonesia was chosen, especially in Meraang unit,
because most of PT. INHUTANI I activities were center in this regency. In addition, Berau regency has a forest
area that is still relatively wide and the number of people living around the forest area especially within PT.
INHUTANI I working area is also relatively large. It is therefore important to investigate the extent of the
effectiveness of the implementation of CSR programs, in particular in the framework of the partnership and
community development programs viewed from the perspective of good governance.
2. Problems Statement
Based on the description above, the research problem can be formulated as follow:
(1) What kind of CSR programs that have been implemented by the PT. I INHUTANI as the social
responsibility to the community residing in their working area?
(2) What role(s) were played by each actor involved in the implementation of CSR program?
(3) What are the inhibiting factors of the implementation of CSR program?
(4) How is the implementation model of CSR program in the perspective of good governance?
3. Materials and Methods
Qualitative inquiry through observation and in-depth interview techniques to gather data was chosen to see the
extent to which the implementation of CSR programs conducted by PT. INHUTANI I in Berau Regency of East
Kalimantan Province of Indonesia. PT. INHUTANI I as one of SOEs was chosen to investigate the
implementation of CSR program especially in fostering rural community forest, partnerships and community
development, and compensation logs on the utilization of timber in the area of PT. INHUTANI I Meraang in
good governance perspective.
4. Literature Reviews
4.1. Understanding the Concept of Good Governance
According to Rewansyah (2010), good governance movement began hooped in the early 1990s as a form of
resistance to the concept of government which was considered to have many weaknesses as putting people's
participation aside. The most fundamental difference between the concept of "government" and "governance"
lies in how the implementation of political authority, economy and administration in the management of the
affairs of a nation. The concept of "government" connotes a more dominant role of government in organizing
various authorities. While governance implies a nation how to distribute power and manage resources and a
variety of issues facing the community. Thus, the concept of governance should be understood as a process, not a
structure or institution.
According to Leach and Percy-Smith (2001) the concept of governance merge the differences between
"government" and "the governed". By merging the differences, thus governance concept contained the elements
of democratic, equitable, transparent, rule of law, participatory and partnership. In other words, governance is the
process whereby elements in society wield power and authority, and influence and enact policies and decisions
concerning public life, economic and social development. Along with the definition and the understanding of the
concept, came the principles of good governance practice. The principles of good governance are:
(1) Transparency
(2) Integrity
(3) Accountability
(4) Participation
4.2. Good Corporate Governance (GCG)
The term of corporate governance is derived from an analogy between the government of a country or city to
rule within a company. According to Solihin (2009), corporate governance deals with the alignment of collective
action problem involving multiple investors. Corporate governance also involves reconciliation of different
interests of the stakeholders. Organization for Economic Corporation and Development (OECD) defined
corporate governance as follows:
Corporate governance in the system by roomates business corporations are directed and controlled.
The corporate governance structure specifies the distribution of rights and responsibilities among the
different of participants in the corporation, such as the board, managers, shareholders and other
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3. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
www.iiste.org
stakeholders. (Quoted by Solihin, 2009:115).
Corporate governance is a system to direct and control the company (corporate). Corporate governance
structures define distribution of rights and obligations among the various parties involved in a company, such as
the board, managers, shareholders and other stakeholders. However, the government as the formulator of
regulations has highly influential role on the implementation of corporate governance. The community as a
provider of a variety of resources and product buyer is a source of legitimacy of companies that have the
potential to support or inhibit the presence and company.
According to the OECD Assessment Principles Team of 2004 (Solihin, 2009:119), there are two theories that
can be used to explain the concept of corporate governance. The first theory is the Stewardship Theory and the
second is the Agency Theory. First, Stewardship Theory was founded on philosophical assumptions about
human nature that is essentially trustworthy, able to act in a responsible manner, and have the integrity and
honesty of the other party. When this principle is applied in corporate management, the management theory
views the company as a party that can be trusted to act in the best interests of the general public and the interests
of the shareholders in particular. Second, Agency theory views that the management company is an agent for the
shareholders, who will act with full awareness of its own interests (self-interest), not as the wise and prudent and
fair to shareholders, as assumed in the Stewardship Theory. Contrary to the Stewardship Theory, this theory
considers that the management can not be trusted to act in the best interests of the public in general and
shareholders in particular.
Agency theory is a form of response to neo-classical economists and senior managers to control the executive
board in a contractual position as the holder of the company (Martin, 2011). Agency theory discusses a legal
contract between owners of capital as the principal and appointed managers as agent. Managers work to run the
company from the owners of capital, with the purpose of obtaining profits and venture capital as well as returns.
The contract contains what will be done with the managers of capital provided by the owners of capital and
provisions laid down on profit sharing between the principal and agent. In a further development, the Agency
Theory got wider response as deemed better reflect of the reality. Various thoughts on developing corporate
governance by focusing on Agency Theory where the management of the company must be monitored and
controlled to ensure that the management is done with full compliance with the various rules and regulations.
4.2.1. Models of Corporate Governance
Citing Buchloz, Solihin (2009:120) mentioned that there are three models of corporate governance that showed
how the power to execute and oversee the company's shared among the stakeholders. All three models are: (1)
Traditional Model, (2) Co-Determination Model, and (3) Stakeholder Model.
(1) Traditional Model.
In this model, a company's corporate governance is based on property rights. According to this model, the
shareholders as control holders over the company is a major factor in corporate governance process;
(2) Co-determination model.
This model is called co-determination model because of the capital from shareholders and labor are equally
instrumental in the corporate governance process. The idea to combine capital and labor comes from the
concept of participatory decision-making or participatory management. This concept recognizes the rights of
groups with a major stake in the company to have an influence on what is done by the company; and
(3) Stakeholder Model.
This model is based on the development of stakeholder management theory which states that in addition to
the employees and shareholders (internal stakeholders). There are other groups in society that are the
responsibility of the company if the company's operations have an impact on the group as well as the need to
align the company to achieve its objectives with the interests of the various constituencies that often
contradict each other. Participation of various stakeholders in the corporate governance process will ensure
that the interests of the stakeholders will be taken into account in the decisions made by the company.
Implementation of corporate governance involves various parties, both from inside the company (shareholders,
directors, and employees) and those who are from outside the company, i.e. the stakeholders in a broad sense.
The involvement of various stakeholders in the implementation process aims to create a corporate governance
efficiency, transparency, and also accountability which is then referred to Good Corporate Governance (GCG).
In the book of The Code of Indonesian Good Corporate Governance issued by the National Committee on
Governance Policy (Komite Nasional Kebijakan Governance, KNKG) stated that GCG is needed to encourage
the creation of a market that is efficient, transparent, and consistent with legislation. Therefore, GCG
implementation should be supported by three inter-related pillars, namely: the state that serves as a regulator, the
private/business as market makers, and the public as users of products and services of the business. Without the
participation of all three parties in the implementation of GCG, the expected implementation of GCG will not
run optimally.
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4. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
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4.2.2. Good Corporate Governance Principles
GCG has a number of principles in its implementation, namely: transparency, accountability, responsibility,
independency, fairness and equity. Transparency is meant to maintain objectivity in running a business in which
the company must provide the relevant information in a way that is easily accessible and understood by
stakeholders. Accountability can be explained that the company must be able to account for performance
transparently and fairly. Thus, a company must be managed properly, measured in accordance with the interests
of the company and while taking into account the interests of shareholders and other stakeholders. Responsibility
is understood that the company must comply with the laws and responsibilities towards society and the
environment so that business continuity can be maintained in the long term and to be recognized as a good
corporate citizen. Independency is meant to accelerate the implementation of GCG where the company should be
managed independently so that each part of the company will not be dominated and intervened by the other party.
Fairness and Equity can be said that, in its work, the company should always consider the interests of
shareholders and other stakeholders based on the principles of fairness and equality.
Apart from GCG principles, the implementation of GCG can still be ended up with failure. The failure
application of corporate governance can be caused by external and internal factors. External factors, among
others, is the weak regulations on governing corporate governance. Regulatory weakness made by the
government will open up opportunities for companies to carry out fraudulent practices that will result in losses
for shareholders. While failure caused by internal factors primarily due to a conflict of interest between directors
and managers of the company with shareholders' interests.
4.2.3. Linkage between Corporate Governance and Corporate Social Responsibility
Implementation of Corporate Social Responsibility (CSR) by companies/corporate/business/enterprises is
intrinsically orientation from the inside out. This means that before carrying out CSR activities that are
discretionary or voluntary, companies must first run the business properly so as to ensure the achievement of
profit maximization (economic responsibilities). In addition, companies need to develop a policy to guide the
implementation of CSR. All these things will not be done well if the company did not apply the principles of
GCG.
Clarke (2004), described the relationship between corporate governance and CSR through the concept of
stakeholder participation. According to Clarke (2004), the participation of stakeholders in the company will be
able to improve the corporate governance mechanism in achieving various objectives, although it may cause a
little conflict of interest in the process of achieving that goal. Therefore, related to the concept of corporate
governance, companies need to build relationships with stakeholders continuously in order to realize GCG.
Monks and Minow (2003: 56), described two important aspects of the concept of GCG, namely: (1) the
importance of the determination of shareholders' rights to obtain information correctly and in a timely manner,
and (2) the company's obligation to continue to inform the company's performance to shareholders and other
stakeholders in an accurate, timely, and transparent. This concept overcome the weaknesses of Agency Theory
that mention the existence of information asymmetry between shareholders and management that led to the
emergence of conflict between the two parties in the company.
4.3. Corporate Social Responsibility (CSR)
4.3.1 Concept Definition and Implementation Program
Concept of CSR, according to The World Bank, can be defined as follow:
" Corporate social responsibility is the commitment of business to contribute to sustainable economic
development, working with employees and their representatives, their families, the local community
and society at large to improve quality of life, in ways that are both good for business and good for
development " (Lucky, 2008).
Lucky (2008) also added that CSR focus on the balance between attention to economic, social and environmental.
There are several steps that must be passed by the company in the implementation of CSR, namely:
(1) The first phase, called the company's economic animal that its concern is economical to focus only on profit;
(2) The second phase, the company began a social aware, but it may still be a charity, donations to charity when
asked others to do the program;
(3) The third phase, to community affairs, giving strategic interest linked to business (includes cause-related
marketing);
(4) The fourth stage, to the corporate community investment; strategic partnership initiated by the company, and
(5) The last stage, the company will be to sustainable business functions integrated into business strategy goals.
5. Results: Analysis and Discussion
5.1. PT. INHUTANI I Implemented CSR programs.
There are three types of activities that have been implemented as a embodiment of the company's CSR program
done by PT. INHUTANI I Meraang Unit, namely: (a) forest village community development program (PMDH),
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5. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
www.iiste.org
(b) partnership program and community development, and (c) compensation grant program. The third type of
program had its own characteristics in practice, but have the same goal, which is the empowerment of the
community, both socially and economically. Forest Village Community Development Program, aimed to
empower communities living around the forest production into the working area of the company, so that the
negative impacts of forest exploitation can be reduced, and rural development can be continued. The partnership
program had the goal of economic empowerment, which helped small business community economic group for
assistance with low interest capital. Community development programs, social empowerment by helping the
various forms of social activities, both traditional and religious rituals, and other social activities are carried out
within the framework of national holidays. While awarding compensation fund intended as a form of
"compensation" for environmental damage and loss of community work, so it is possible to acquire the other
business opportunities.
CSR as a company policy product is supported by central and local government regulations, the implementation
is not running smoothly. Based on the data collected, it can be argued that all three types of activities in PMDH
were not fulfilled 100 percent. Each activity: (1) an increase in the economic growth of the income of rural
communities environmentally, realized as much as 33.33 percent, (2) the provision of socio-economic
infrastructure, realized as much as 61.56 percent, and (3) creation of awareness and positive behavior in the
preservation of natural resources, realized by 76.00 percent. Overall, of the cost of the budget provided as much
as Rp. 47.500.000,- it was only realized for Rp. 26.811.000,- or 56.44 percent. One limiting factor was not the
budget realization but it was because of the society did not apply to the company and budget considerations that
was still available from previous years, and has been funded by local government programs.
According to Frederick (1992), the implementation of CSR in general is based on two principles, namely the
principle of charity and the principle of stewardship. Frederick (1992) explained that most business organizations
now describe CSR as a kind or part of the company's relationship with the community, with more to be creating
charitable contributions. However, currently the company's executives have been aware of the role and position
as steward or guardian to act in the public interest. In addition, business ethics also underpin the implementation
of CSR. In Article 15 of Law No. 25 of 2007 on Investment affirmed the mandate that, every investment is
obliged to apply the principles of GCG and CSR, in order to continue to create a harmonious and balanced
relationship and in accordance with the environment, values, norms, and culture of the local community.
Based on the discussion, it appears that the implementation of CSR is not fulfilling its full potential of existing
principles of good governance and or good corporate governance. The principle of transparency is there, but it
was practiced in full in the CSR program providing compensation fund. In the implementation of CSR programs
of PMDH, Partnership and BL, transparency was still not optimal because the public did not know in detail
about the plans and activities of the company's CSR budget plan. Though the application of the principle of
participation is very important in the implementation of CSR programs, as said by Clarke (2004), that the
participation of stakeholders in the company will be able to improve the corporate governance mechanism in
achieving various objectives, although it may cause a little conflict of interest in the process of achieving that
goal. Therefore, as imply by the concept of corporate governance, companies need to build relationships with
stakeholders continuously in order to realize good corporate governance (GCG).
Accountability and integrity of the government have been appeared, as be seen through already prepared
regulations governing the implementation of CSR. Yet there is still no operational guideline. Therefore it is
needed local or regional regulation on CSR for its implementation mechanism. The law regulates the procedures
for disbursement of CSR funds, CSR utilization of funds, supervision and accountability of the use of CSR
budget.
Community participation in the implementation of CSR programs were still limited to as the recipient and
budget beneficiary, and not up to the level of supervision and evaluation of the use of CSR funds. Community
were also not actively involved in counting the number of logs that the company produced. It was as the deciding
factor for the amount of compensation that they receive. The absence of this participation, allows the
manipulation of the amount of company’s roundwood production.
Based on data, analysis and discussion on this sub section, the following proposition is proposed:
Minor Proposition (1):
Implementation of effective CSR program is determined by these factors: first, the good faith or honesty of the
company to meet public interest; second, the application of stewardship principles; third, the practice of good
business ethics; and fourth, implementation of good governance principles by all three governance actors
(government, private and society).
5.2. Actor role in the implementation of CSR programs
Implementation of CSR programs involves three actors in partnership and synergy, namely: government, private,
and society/community. In this research, State actors were played by the Minister of Forestry, Minister of State
Owned Enterprises, Governor, Regent, Forest Service Department, Head of District and Village. Private actors
39
6. Public Policy and Administration Research
ISSN 2224-5731(Paper) ISSN 2225-0972(Online)
Vol.3, No.9, 2013
www.iiste.org
were played by concessionaires (PT INHUTANI I and its partners). While community actors were played by the
local indigenous people. Role of the state as a regulator of CSR seemed very dominant. Although for operations
at lower levels, it had not poured into a regulation. The company's role was technical and operational to channel
some profits which was allocated for CSR. This is relevant to the statement of Andersson (2006), which stated
that one of the CSR trend is the mobilization of corporate actors to provide assistance to countries or
communities where they operate. This activity was shown by cooperating with local governments to distribute
some aid, both for the national interest in a broad sense (law enforcement assistance for violations of human
rights), as well as special assistance to the affected communities, as a result of the company's activities. While
the role of the community as a user or a user is active on the funds or assistance received. Thus, the three actors
is very synergistic roles determine the level of benefits and assistance CSR funds received from the company.
Based on data, analysis and discussion on actors’ role, the following proposition is proposed:
Minor Proposition (2):
Synergy in the implementation of the role of the three actors, namely the government, companies and
communities determine the effectiveness of the utilization of CSR funds for social and economic progress in the
region of the company.
5.3. Inhibiting factors of CSR Implementation Program
Government actors face obstacles related to regulations, especially those related to the implementation of CSR
partnership program. The obstacles encountered in the requirements for prospective foster partners, as stipulated
in the Regulation of the Minister of State Owned Enterprises Number PER-05/MBU/2007, in particular the
provisions of Article 12, which requires a business license is still considered burdensome by trained partners
candidates, because their business generally not yet have an official business license and did not even have a tax
registration number (Nomor Pokok Wajib Pajak, NPWP). Similarly, the addition of a guaranteed loan
requirements, although in the Minister of State owned Enterprises is not set explicitly, also considered
burdensome by trained partners candidates.
In addition, there had been no further regulation from local government, either in the form of local regulation or
in the form of any other regulations governing the implementation of the company CSR in the region, has an
impact on the legal vacuum that can be used as reference for further operations, both for company and the
community. The current legislation only stipulates the compensation funds CSR, namely in the form of the
Governor of East Kalimantan and Berau Regent Decree. This condition was contrary to hope for a
comprehensive regulation, as stated by Billah (1996), that good governance requires a legal framework or laws
and regulations are enforced in a comprehensive manner. Thus, not only controls the regulation, but also to be
enforced in a comprehensive or complete, and should not hinder the achievement of a regulation intended
purpose.
In addition, the company also less pro-active to get a well trained partners to identify the needs of the community
in the implementation of CSR Community Development program (BL). Companies just waiting for proposals
from citizens. As a result, according to Lucky (2008), CSR program that has been running for this can not
provide a significant contribution of the studies that have been done, it appears that the program is limited to the
realization of CSR charity program that has not been able to empower the poor. The contribution limitations
caused motive realization CSR program to reduce conflict with local communities and the program has not been
involving the community at every stage of program implementation.
In addition to inhibiting factor from the government and the company, the other inhibiting factors in the
implementation of CSR sourced from the public. This is because the community is growing dynamically, so that
their participation in the development and increased social activity. As said by Billah (1996), is that people have
the freedom to participate in the construction, which began the process of planning, implementation, and
evaluation of the results of such development. However, in the implementation of CSR, there is no wellorganized planning of the community, whether initiated by the traditional leader or head of the village, in the
work program related to the utilization of funds as well as help preserve the environment of the company. In
addition, the utilization of funds received compensation from the company has not been fully utilized for the
development of rural infrastructure and physical facilities, but more dominant for traditional activities (eg,
ceremonies), or activities that are ritual. There is no orientation to the budget in order to collect the construction
of village roads, village irrigation, and so on.
Based on these descriptions, the following proposition is proposed:
Minor Proposition (3):
Barriers to the implementation of CSR programs sourced from government and local governments, companies
and communities, so that the effectiveness of the implementation of the program can be determined by the extent
of the three actors. This can overcome the obstacles that exist internally and externally.
Based on those three Minor Proposition, a Major Proposition of this research can be formulated as follow:
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Major Proposition:
The effectiveness of the implementation of Corporate Social Responsibility in the perspective of good
governance is determined by the following factors: (a) good faith or honesty of the company, (b) the fulfillment
of ethical business practices; (c) the application of the principles of good governance; (d) the synergy in the
implementation of role of three actors, namely the government, companies and community, and (e) the ability of
each actor to overcome the barriers that exist in implementing CSR programs.
5.4. Recommended Model for CSR Implementation Program
From empirical facts, data, analysis and discussion of CSR implementation program in good governance
perspective models, it can be said that: first, there are still some lack on operational regulations at the local level
to implement CSR programs and activities in rural areas; second, CSR programs are not included as part of the
village and the village budget planning so that its implementation becomes less focused and its utilization was
still not optimal; and third, there is no specific regulatory bodies on CSR implementation at the local level, so the
evaluation of the implementation of the program was never carried out. Based on these shortcomings, it is then
proposed a recommended model of CSR implementation to deal with it as below.
Figure 1. Recommended Model for CSR Implementation Programs
The model has several advantages over previous models, namely: first, there is a regulatory body established by
the Local Government and tasked to monitor and evaluate the implementation of CSR in the field. Second, at the
level of the company formed a special task force to disseminate CSR program, so that people become more
familiar with, and can take advantage of the CSR program. Members of this unit can also be drawn from the
community, so that it becomes a joint unit that helps companies promote their CSR programs. Third, CSR fund
utilization plan is discussed and discussed in forums Rural Development Planning Meeting (Musrenbangdes), so
that the funds can be utilized to the maximum available for development activities and their use can be
controlled. It is as well to avoid misuse of CSR funds for personal or group interests. Funds disbursed by
company later incorporated into the Village Budget and expenditure (APBDes) and is considered as revenue
villages. Furthermore pencaian and use customized with an agreed plan in musrenbangdes.
The whole new proposed aspect of the model must be set out in Local Regulation on CSR Program Guidelines.
In addition, all CSR activities, both in the planning process, dissemination and implementation activities should
pay attention to local knowledge, ie the values that live and thrive in the local community. Thus the expected
relationship lasted three actors in harmony and sustainable.
The drawbacks of this recommendation model are: first, the company requires additional expenditures to finance
the work unit of socialization program. However, the budget can be allocated from the budget of the
administration of the activities budgeted in the CSR program. Second, the budget can not be used directly
because it should be done through existing local budget mechanisms, and this, of course, requires a longer time
compared to the previous mechanism.
6. Conclusion
Based on the analysis of data and discussion in the previous sections, it can be drawn conclusions as follow.
(1) Implementation of the CSR program has been going well, but not maximized. It can be seen from the not
maximum budget absorption provided, and the three governance actors (governments, companies and
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communities) have not been synergetic active to implement the CSR program based on the principles of
good governance. The principle of transparency is there, but it was practiced in full in the CSR program
providing compensation fund. In the implementation of CSR programs PMDH, Partnership and BL,
transparency was still not optimal because the public did not know in detail about the plans and activities of
the company's CSR budget plan. Accountability and integrity of the government have been appeared, as can
be witnessed from already prepared regulations governing the implementation of CSR, yet there is still no
operational guidelines. Thus, the implementation of CSR programs have not fully apply the principles of
good corporate governance;
(2) Synergy in the implementation of role of the three actors, namely the government, companies and
communities to determine the effectiveness of the utilization of CSR funds for social and economic progress
in the region of the company. Thus, there is an active interaction between the three actors fit their respective
functions. The interaction between government actors as the regulator with the company as executive, and
also with the public as beneficiaries. Government's role to facilitate the interaction between the company that
will distribute the funds CSR, with the public as the CSR fund beneficiaries;
(3) The implementation of CSR programs have the enabling and inhibiting factors derived from the three actors.
Government actors faced the barriers with respect to regulation. Company actors were less pro-active to get
established partners and to identify the needs of the community in the implementation of CSR program of
Community Development (BL). Thus, the effectiveness of the implementation of the program is determined
by the extent of the three actors can overcome the obstacles that exist internally and externally; and
(4) The ideal model of CSR implementation programs is a model that has the following advantage criteria: first,
there is a regulatory body established by the Local Government and tasked to monitor and evaluate the
implementation of CSR in the field. Second, at the level of the company formed a special task force to
disseminate CSR program; Third, CSR fund utilization plan is discussed and discoursed in forums of Rural
Development Planning Meeting (Musrenbangdes). Fourth, in the implementation of the program should be
referred to the principles of good governance.
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