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Jakarta Post

Turning over a new leaf with a corporate green conscience

It’s never been hotter to wear green on your sleeves

Sondang Grace Sirait (The Jakarta Post)
Jakarta
Sat, April 21, 2012

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Turning over a new leaf with a corporate green conscience

I

t’s never been hotter to wear green on your sleeves. Maybe not literally, but come April 22, all around the world, hundreds of millions of people will recognize, pay tribute and acknowledge Mother Earth on the 42nd celebration of World Earth Day.

In Indonesia, where environmental movements have started to grow, awareness is inching up. Just last month, social media helped boost growth of the local version of the Earth Hour campaign. Trash bins for recycling purposes are spreading across town.

And as you are reading this, folks at the Bandung Environment Control Agency are pushing for bans on the use of plastic bags at minimarts. The agency blames plastic waste, as much as 150 tons per day, for clogging the city’s drainage system. Business owners there say they have done their part, by using biodegradable plastic bags or to some extent, introducing the less popular reusable shopping bags. With the bylaw expected to be implemented by the end of this year, more debates are on the table.

Such should be the kind of give-and-take between companies and the environment, contends the Environment Ministry, which last year launched a guidebook on corporate social responsibility. It’s an idea supported by those pushing for corporates to give back more.

CSR proponents argue that not only does its implementation enhance brand image and reputation, but it also creates customer loyalty, improves relations with regulators, and reduces costs through the best environmental practice. It’s the “stakeholder view” that argues that companies have a social responsibility that requires them to consider the interests of all parties affected by their action (Branco and Rodrigues, 2007).

“The existence of nature equals the existence of business,” says Sella Wangkar, a Jakarta-based CSR adviser. “CSR programs that relate to the environment can actually pioneer better governance as it involves all stakeholders striving for sustainability.”

In the CSR realm, Indonesia is indeed a pioneer. Through Law No. 40/2007 on Limited Liability Companies, the legislature made it a legal mandatory requirement for those doing business in the country to have corporate social responsibility programs. The move made Indonesia a global leader in the CSR field, ahead of governments that are still in the process of deliberating and facing opposition from corporate vested interests.

Still, some say corporations need to think of their social responsibility as more than just an afterthought. Nur Shilla Christianto, vice president of communication consultancy Maverick, questions the way many corporates in Indonesia run their CSR programs.

“Some do it with the best of intentions, but mostly the CSR attempts sound contrived. This is partly because of the philosophical disconnect between CSR, which is essentially philanthropy, and the imperative of a business to make money,” she said.

“What makes more sense than the concept of CSR is the concept of Creating Shared Values [CSV],” Shilla adds. “Unlike CSR, CSV starts off with the premise that a business should recognize that societal needs, not just conventional economic needs, define markets. It also recognizes that social harms or weaknesses often make a company less efficient and profitable.”

At Astra International — one of the largest diversified conglomerates in the country with business in automotive, financial services, heavy equipment, agribusiness, information technology and infrastructure — there is nothing special planned for World Earth Day this year. But that is because most of the company’s environment programs already run all year long, and are slated to reach a peak in June.

As one of the four main areas of the company’s CSR objectives, environment programs there range from building a park in North Jakarta to conserving mangrove forests to cleaning up the polluted Ciliwung River to promoting environmental awareness in schools and the society.

“Environment is a priority, because we see it as the connection between all sectors, from finance to society,” says Riza Deliansyah, Astra’s head of environment and social responsibility, who this year alone plans to plant 550,000 trees. “That’s only the stepping stone. We’re aiming to do more.”

As Astra has shown, social responsibility programs in environment are as popular as ever, standing side by side with health and education. It is such activities that are directed at helping and empowering the society that should be the future of any social responsibility programs, according to Shilla, who believes corporates need to base social programs on their core business and build them from there.

“It makes business sense, and what’s also important is that it helps to empower the society in which you operate,” she says.

In the end, all must work for the greater good, toward a positive synergy with the government, says Sella. “Corporates shouldn’t be forced into doing something, but rather be seen as a partner in locating areas that need empowerment.”

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