Corporate Social Responsibility

Definition of Corporate Social Responsibility

Corporate Social Responsibility is the company's commitment to provide long-term contribution to a particular issue in the public or the environment in order to create a better environment. The contribution of these companies may be many things, for example: financial aid, aid experts from the company, assistance in the form of goods and others. Here it is necessary to distinguish between the Corporate Social Responsibility with charity activities. Charity events only take place once or a while and usually it raises public dependence on the company. Meanwhile, the Corporate Social Responsibility program is ongoing and aims to create self-sufficiency public.

Five Pillars of Corporate Social Responsibility activities
In this study the concept of Corporate Social Responsibility will be measured using the five pillars of Corporate Social Responsibility activities of the Prince of Wales International Business Forum, namely (Wibisono, 2007, p.119):

1. Building Human Capital

Internally, the company is required to create a reliable human resources. Externally, the company is required to do community development, usually through community development.

2. Strengthening Economies

Companies are required to not become rich himself, while poor communities in their environment; they have to empower the economy around.

3. Assessing Social Cohesion

Companies are required to keep the harmony with the surrounding society in order not to cause conflict.

4. Encouraging Good Governance

In running the business, the company should run a good business governance.

5. Protecting The Environment

The company strives to preserve the environment.

Forms of Corporate Social Responsibility Programs
Kotler in the book "Corporate Social Responsibility: Doing the Most Good for Your Company" (2005) mentions some form of Corporate Social Responsibility programs to choose from, namely:

1. Cause Promotions

The company seeks to raise public awareness about a particular issue, which this issue should not be related to or associated with the company's business lines, and then the company invites the public to donate time, funds or their property to help solve or prevent problems. In this case, the company can carry out its programs individually or in collaboration with other institutions, such as: non-government organization.

2. Cause-Related Marketing

In cause related marketing, the company will invite the public to buy or use its products, whether goods or services, where most of the profits will be donated to help the company overcome or prevent a specific problem. Cause related marketing can be:

- Any item that is sold, then a percentage will be donated.

- Each opening accounts or new accounts, then a few dollars will be donated.

3. Corporate Social Marketing
Corporate social marketing is the company with the aim to change people's behavior (behavioral changes) in a particular issue. Usually corporate social marketing, focusing on the areas below, namely:

- The health sector (health issues), for example: reduce smoking, HIV / AIDS, cancer, eating disorders, etc.

- Field of safety (injury prevention issues), for example: driver safety, reducing the circulation of firearms, etc.

- Field environment (environmental issues), for example: water conservation, pollution, reduction of pesticide use.

- Field of the community (community involvement issues), for example: to vote in the election, donating blood, the protection of animal rights, etc.

4. Corporate Philanthropy
Corporate philanthropy may be a form of Corporate Social Responsibility of the oldest. Corporate philanthropy is done by the company by giving a contribution / donation directly in the form of money, services or equipment to the needy both institutions, individuals or groups. Corporate philanthropy can be donated:

- Donate money directly, for example: giving scholarships to children who can’t afford, etc.

- Deliver the goods / products, such as: providing assistance stationery for children studying in these schools open, etc.

- Providing services such as: providing assistance immunizations to children in remote areas, etc.

- Giving permission to use the facilities or distribution channels owned by the company, for example: a hotel providing a special room to be a showroom for the products of local crafts people, etc.

5. Corporate Volunteering
Community Volunteering is a form of Corporate Social Responsibility in which companies encourage or invite employees to get involved in Corporate Social Responsibility program is being run by the contributing his time and energy. Some form of community volunteering, namely:

- The company organized its employees to participate in the Corporate Social Responsibility program is being run by the company, such as teaching staff, etc.

- The Company provides support and information to its employees to participate in programs that Corporate Social Responsibility is being run by other institutions, where programs Corporate Social Responsibility is tailored to their talents and interests of employees. Give it a chance (time) for employees to follow the activities of Corporate Social Responsibility at work, where employees will still receive his salary.

The advantage of doing Corporate Social Responsibility Program.
In the book, "Dissecting CSR Concepts and Applications", Yusuf Wibisono (2007) outlines 10 benefits that can be derived by the company if you make Corporate Social Responsibility program, namely:

a. Maintain and boost the company's reputation and image of destructive deeds will definitely decrease the reputation of the company, otherwise positive contribution will certainly boost the positive image and reputation of the company. Image / positive image is important to the success of the company.

b. Getting decent social license to operate
Society is a community around the company. When they get the benefit of the company, then they will find themselves having company. So the information available to the company's remuneration is the freedom to run the business in the region.
c. Companies Reduce Business Risk
Managing risk in the middle of the complex problems of the company is essential to business success. Disharmony with stakeholders will disturb the smooth running of the business enterprise. When a problem has occurred, then the cost of recovery will be much doubled when compared to the budget for Corporate Social Responsibility program. Therefore, the implementation of the Corporate Social Responsibility as a preventive measure to prevent the deterioration of relations with the stakeholders need attention.
d. Spreading Access Resources
Good track records in managing Corporate Social Responsibility is a competitive advantage for companies that can help pave the way toward necessary resources company.

e. Unfolding Towards Market

The investment to its Corporate Social Responsibility can be the ticket to company towards greater opportunities. This includes fostering customer loyalty and penetrate new markets.

f. Reduce Costs
Many examples of the cost savings that can be done through Corporate Social Responsibility. For example: by recycling industrial waste into the production process. Besides being able to save on production costs, it also helps that the waste is becoming safer for the environment.
g. Improving relationships with stakeholder

Implementation of Corporate Social Responsibility will help to increase the frequency of communication with stakeholders, where communication will raise the trust of stakeholders to the company.

h. Improving Relations with Regulators
Companies that implement Corporate Social Responsibility will generally relieve the burden on the government as a regulator who is actually responsible for the welfare of the environment and society.
i. Improve employee morale and productivity
Good corporate image in the eyes of stakeholders and the positive contribution that the company provides to the community and the environment, will create its own pride for the employees working in their company thereby increasing their motivation.

j. Opportunities to Get Award
The number of awards or rewards given to perpetrators of Corporate Social Responsibility today, will increase the chance for companies to get award

Corporate Social Responsibility (CSR) Bank Mandiri

The Partnership Program and Community Development (PKBL) is spearheading the implementation of Corporate Social Responsibility (CSR) Bank Mandiri. Through the implementation of the sustainable CSR, Bank Mandiri would like to achieve the success of the business together with an increase in the welfare of Indonesian society.

Since 2007, CSR programs are aligned with the corporate objective and carried out in a structured and targeted, as well as being able to improve sustainable corporate image and corporate business to its full potential. The main focus of the CSR program is to encourage the growth of Independent levels of well-being of the community.

CSR strategy is increasingly enhanced through Independent determination of the three pillars of pro

grams:

- Self-reliant Community

- Self-reliant Education and Entrepreneurship

- Eco-friendly facility

This focus aims to encourage economic progress by making the community in the area have the production capacity and economic advantages, increasing the creative and productive activity pattern that finally bring about peace and public order.

a) To conduct programs help micro and medium enterprises, such as the assistance provided to entrepreneurs in Madura traditional herbs, and assist in the distribution that is known penetrated archipelago.

b) Providing assistance to entrepreneurs sculpture in Bali.

This focus aims to support the existence of a quality education in Indonesia and create future leaders who are prepared with global competition

c) Outstanding teachers awards

d)Mandiri achievement scholarship

e) provision of adequate learning facilities and infrastructure in the form of construction/renovation of school buildings and laboratories, provision of educational facilities which include computers, printers, mebeulair and provision of library facilities and books.

is the desire of Bank Mandiri for the realization of an independent Indonesia through the provision of renewable energy, clean water supply and reforestation program to support the welfare of society through the creation of beautiful and comfortable environment.

a) Provision of facilities and infrastructure supporting the provision of clean water in areas that still trouble the water

b) Development of renewable energy that aims to provide alternative energy for the region that have not been electrified and assist the development of public access to electricity and energy.

c) Planting of trees on marginal lands for re-greening the earth Indonesia, to support government programs of planting 1 billion trees as a preventive action and natural disasters.

d) Planting and maintenance of plant mangroves in coastal areas with the aim to prevent abrasion.

e) Provision of urban parks that incorporate the concept of greening, education, and economics that aims to provide a green open land and provide recreational and educational facilities for the community.

f) Development of eco tourism with the aim of empowering the community in the field of tourism and maintain the beauty of the environment.

CONCLUSION

The essence of CSR is not only seen limited as a mere philanthropic activity but primarily to build a reputation and positive image of the company. Fully realized, the reputation is not merely an abstract concept but is an invaluable asset as the company's main attraction for customers, employees, and of course the financiers (investors). Clearly, CSR has strategic significance as a long term investment for the company that emphasizes on the aspects of continuity (sustainability) and reliability (reliability) in the long run.