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View all search resultsMuch has been said about the urgent need to address Indonesiaâs social and economic issues, but who is really responsible for the welfare of the people? We can observe that there are four major institutions that make up the public and private sector â the government, the media, non-governmental organizations (NGOs) and business
uch has been said about the urgent need to address Indonesia's social and economic issues, but who is really responsible for the welfare of the people? We can observe that there are four major institutions that make up the public and private sector ' the government, the media, non-governmental organizations (NGOs) and business.
One could reasonably expect that the primary responsibility for looking after the welfare of the people lies with the government, possessing as it does the executive, legislative and judicial authority of the nation. Nonetheless, the media and NGOs are better equipped to facilitate the distribution of information and social surveillance. Media organizations, in particular, can advocate for the diverse interests of the people.
The business sector also has a large and critical role to play in improving social welfare, and perhaps this role transcends the contributions made by those other three institutions. Business is more than just a profit-generating mechanism.
Business profits help economic growth, and one could argue that that alone contributes more powerfully than anything else to the promotion of social prosperity and the alleviation of poverty. Milton Friedman, a Nobel laureate in economics, once said that 'there is one and only one social responsibility of business, and that is to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game'. Friedman's argument, however, is incomplete.
The private sector needs to address social and economic issues, because not even the most capable or least corrupt government in the world has all the resources and firepower necessary to solve all the problems affecting a society. Moreover, profits and crusading social justice could very well go hand in hand.
The Indonesian workforce and general public appreciate and trust businesses that embrace a social purpose in their operations.
The 2014 Kelly Global Workforce Index revealed that of the 22 nations participating in the study, Indonesian employees were the most willing to trade off pay for flexible work schedules and more socially conscious work. Furthermore, the results from the 2015 Edelman Trust Barometer revealed that in Indonesia, high-quality products, followed by attention to customers, the fair treatment of employees and the protection of the environment, were considered the most important trust-building attributes necessary to sustain and generate business growth.
This research suggests that institutions could attract and retain more talent and public support by connecting their mission for profit to some additional higher purpose that is meaningful to society.
Another study, conducted by Visa in 2012, highlighted that Indonesian Millennials were entrepreneurial in nature. This fact heralds a bright future for the nation's budding social entrepreneurialism.
A recent paper from the Boston Consulting Group entitled The Art of Sustainable Giving further details how priorities to accelerate social enterprise in Indonesia could concurrently support economic empowerment and social progress in Indonesia. In short, strengthening social entrepreneurs and their capabilities magnifies the impact of enablers and attracts more social investors.
These findings present a great opportunity for the Indonesian government to reach out to business and build ties to address social and economic problems in the nation. There is a drive from the people to consider more intently the social interest. This general character or attitude, deeply entrenched in the Indonesian people, could generate an ecosystem that is favorable for the growth of social enterprise.
One example of such an ecosystem that I have seen for myself is when I had the pleasure of meeting with Dr. William Wan in Singapore. Dr. Wan is the man behind the Singapore Kindness Movement (SKM). The opportunity was made possible by the Singapore International Foundation (SIF), an organization that promotes people-to-people understanding through social volunteerism in healthcare, art and culture, education and business.
In the meeting, Wan talked about the Singapore Graciousness Index, an annual study commissioned by the SKM to track experiences and perceptions of kindness and graciousness in Singapore. The study also looks at attitudes toward various pertinent community issues. The index aims to quantify what Singaporeans consider gracious attributes ' such as volunteering and donating to the needy ' and analyze how these attributes might serve as a benchmark to realize a more socially responsible society.
My observation is that the Singaporean public and private sector have built a virtuous ecosystem whereby regulators incentivize individuals and businesses to contribute to alleviating social problems. This translates back to helping the government achieve their social and economic empowerment objectives. For example, the government grants a tax deduction of 300 percent for donations made to charity. This means that for every US$1 donated to a registered charity, $3 is deducted from the donor's taxable income.
Many organizations then benefit from the charity. The resources support organizations such as HCA Hospice Care Singapore to provide palliative care for the elderly and those who are terminally ill and less fortunate. The benefits even trickle down to other countries.
In Indonesia for example, SIF had connected experts from HCA to training and conduct symposiums in Indonesia to help the development of palliative care in Indonesia.
Assistance in special needs education, access to safe drinking water and modern sanitation are some of the indirect impacts that we have received from Singaporean volunteers.
Either way, whether it is corporations integrating a social purpose into their business objectives or the government supporting social entrepreneurship and facilitating economic and social empowerment in the country, we all need to chip in and do our bit.
The primary responsibility for looking after the welfare of the people lies within all of us and there is no better alternative than a 'many helping hands' approach.
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The writer is a graduate of the University of Indonesia Master of Management program and a senior consultant for communications marketing firm Edelman Indonesia.
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