By  A.Mukhlisin Rony

Introduction

As an idea, corporate social responsibility (CSR) is a good concept which being discusses intensively in Indonesia on the formal and informal meetings which involving multi-stakeholders: private company, local community, NGO, environmentalist, socio-anthropologist, as well as central and local government.  Several companies such as extractive industries, manufacturing industries, and services industries engage CSR in various ways that substantially still only community development.  There are often misconceptions between CSR and community development.  I believe CSR can help us to achieve better living in our world (including our country, Indonesia) because it promotes the sustainable development paradigm.  In this short article I am trying to inform you the challenges, opportunities, and its strategic action. 

The Challenges

In Indonesia we will face the bad condition and many problem that behave the challenges while promoting and implementing CSR.  Some of them listed below :

• Many interpretation on CSR conception, it depends on self interest.

The implementation on CSR is biased because different interpretation about CSR, sometimes CSR is the same as community development (CD), CSR is part of CD, in another times CD is part of CSR, CSR as public relation tools only, CSR as security tools, CSR as charity, CSR as cost  etc.

• Binding on philanthropic paradigm rather than mutual benefit paradigm.

Its time to switch from charity and philanthropy into interdependence, relating each other, communicating openly to take mutual benefit of the stakeholders.

• The “never ending” crisis in Indonesia.

Starting from 1996/1997, the crisis is still present that decreased  indonesian people welfare.  It interference our behaviour and many aspect of life.

• The escalation of the social conflict.

As the economy and social problem arised, social conflict escalated horizontally and vertically.

• The degradation of natural resources and mismanagement of the resources

The degradation of natural resources become worse and have a momentum after the crisis and engagement of regional autonomy (otonomi daerah).  The poverty of the people, the greedy of the leaders, the lost of norm, value and wise institution.  They interact randomly and take as a race or competition to have maximum revenue by exploitating the natural resources without considering its impact in environment degradation, carrying capacity, biodiversity lost, and its multiplier negative impact in many aspects of our life.

• Quality of life getting worse

It is another aspect as the implication (derived impact) of the wrong management on natural resources use.

Those aspects have the relation from one to another, they influence each other to go to “new equilibrium”- the better equilibrium or the worse equilibrium (chaos) than before.  Its depend us now, which one will we chose ???.

The Opportunities

Besides its challenges, implementation CSR in Indonesia has good momentum now, there are some brief explanation as follows :

• Achieving SDGs (Sustainable Development Goals)

United Nation Organisation launch SDGs concept and implementation strategy (formerly declared as MDGs) as a way to mainstreaming global problem/ issues in the assymetric welfare in the world (poverty, human rights, quality of life, good governance, etc.).  UN stated that problems have to minimize by achieving the goals step by step, cooperation with all the country and nation.  It is our nation goals too, we have to incorporate that mission, interprete and adjust in relation with our certain condition and our social norm/ social capital.  We can access the fund to accelerate implementation of CSR.

• Helping “poor” people to help themselves and awareness of social (local) capital

It is a must to help the poor by enabling them to help themselves.  They need the knowledge, skills, access to resources, access to market of their product, and access to public facilities.  In Indonesia jargon : “mereka lebih membutuhkan kail dari pada ikan” (they need fishing gears more than fish).   In the same time they need the apreciation of their local knowledge (local-social capital)- if any- on managing their local resources.  This is very important for increasing their partisipation on CSR activities.

• Protecting our environment

We Should be ashamed because our greatest natural resources being destroyed caused of our mismanagement and our stupidity.  We have to protect our environment in every activities, it is a must, because climate changing worse and sooner many of our islands will disappear and sink into the bottom of the sea as consequencies of increasing of sea water level.  The most important things are the loss of biodiversity and the loss of our future generation resources.

• Sustaining the profit of the industry supported by social harmony

The profit of the company can be achieve either by taking good interaction and communication between company and stakeholders (local people, NGO, government, etc.).  Good interaction and communication develop the harmony between company and other stakeholders especially local people around the company.  When harmony arise, it can minimize  the bussiness risk.  In the medium-longtherm, the company will have the sustainable financial profit. 

• Green bussiness Era

Green bussiness is the new prospect and challanging.  Our natural resources and biodiversity is one of the most important asset that we have.  They need wise touch for helping indonesian people facing the new millenium and getting welfare.  The prospect of green bussiness is the prospect of our nation.  We have to take this opportunities.

• Circular Economy Era

The resent ideas to face the bettter world is circular economy concept.  This concept trying to solve the waste problem increased in production process, distribution, and consumption.  To change philosophy of “more is better than less” into minimize input production, optimize output of production, and zero waste effort.

The Strategic Action of CSR In Indonesia

Implementation of CSR of course a voluntary for company, but in fact it is difficult to achieve the goal, i.e. SDGs goals without regulation and direction from national dan regional government.  Indonesian government has targetted the Goals in 2030 as the direction for company to involve and implement CSR in their company.  It needs to incorporate into the vision and mission of the company as well as into our government policy.  The company can not do it alone, they need wise participation from other stakeholders especially the government (national and local) and civil society. We need collaborative action to campaign and implement CSR.  To make sure it is running well, we need the good plan and activities.  Here are some activities which can help to accelerate the activities and implementation of CSR:

• incorporate SDGs in the vision and mission of the company
• Gathering the lesson learned on the community development implementation to enrich the experiences database. 
• Developing criteria and indicators for evaluating CSR implementation, i.e.  ISO 26000.
• Reward and punishment 
• Intensive coordination among potential stakeholders representing Government, Civil Society, and Companies/Industries and develop Board of Social Responsibility as organizing committee
• Promoting Good Corporate Governance Campaign and awareness..