Pathfinding Indonesian CSR
Collaboration for Better Future
Learning Block 1: 1
CSR Introduction, Baseline StudyStudy-Social Mapping, Social Risk Analysis
CSR Introduction • What is the driver for company developing CSR activities? – Internal factors? – External factors? – Benefits/advantages? – Risk/disadvantages
• What it the working definition of CSR? Riza Primahendra
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Drivers for Social Responsibility Economic Drivers
Social Drivers
• Social license to operate • Company image and • Socio-Economic gap/ reputation as inequalities lead to competitive advantage social tensions • Improved risk • Environmental & social management changes lead to human • Pressure from new breed rights and poverty issues of customers and • Demographic change has investors – socially socio-economic-political responsible ones consequences Riza Primahendra
Political Drivers • New legal and regulatory framework • Political pressure both domestically and globally • More socially related standard and requirement for getting business permit • Gaining political preference 4
CSR definition
Corporate social responsibility is a commitment to improve community wellwellbeing through discretionary business practices and contributions of corporate resources (Kotler) Operating a business in a manner that meets or exceeds the ethical, legal, commercial, and public expectations that society has of business (Business for Social Responsibility) The willingness of an organization to incorporate social and environmental considerations in its decision making and be accountable for the impacts of its decisions and activities on society and environment. (ISO 26000). Riza Primahendra
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CSR Key Words The way of doing business Commitment & decision making
Responsibility of the decision & activities Stakeholders & Environment
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• CSR is not merely a function, event, nor activity. It is a paradigm and mindset • CSR is not in position of trading off business objectives. It is expanding the objectives to cover more issues and concerns.
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Baseline Data & Social Mapping: Sustainable Livelihoods Framework
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Social Risk Mapping Untuk identifikasi key drivers, dihitung jumlah panah transisi yang menuju dan berasal dari kejadian atau trends – memiliki multiplier effect besar 4 Negosiasi yang gagal
1. Radikalisasi pemuda 2. Ketidakpuasan tokoh lokal melalui demonstrasi
Tokoh lokal tidak puas
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Catatan
Demonstrasi Rakyat
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Proyek Terganggu
Intimidasi Berulang
Radikalisasi pemuda
Pengangguran
Key drivers:
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Eskalasi perlawanan
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Pemetaan konflik bukan analisa sebabakibat. Meskipun “Negosiasi yang gagal” dapat dilihat sebagai sebab, tetapi pemetaan tansisi lebih melihat radikalisasi pemuda sebagai isu kunci. Pada tahap berikutnya, apa yang menjadi sebab dan langkah mitigasinya akan dirumuskan.
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Learning Block 2: 2
CSR Programming – Logical Framework Approach
Problem Analysis>Stakeholders>Objectives>Alternatives PENDAPATAN KECIL
KEMISKINAN MELUAS
BURUH KASAR
Impact/ Overall Goal
PENGANGGURAN
JUMLAH ANAK PUTUS SEKOLAH TINGGI
BIAYA SEKOLAH MAHAL PUNGUTAN & KORUPSI
Purpose/ Outcomes
PENDAPATAN ORANG TUA TIDAK CUKUP
Output
TIDAK ADA MODAL BUDGET TIDAK CUKUP
TIDAK PUNYA KETRAMPILAN
Activity
PRIORITAS PEMDA
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Project Planning Matrix Struc Structure ture
Indic Indicator
Verification
Assumption/Risks
Objective/ Impact
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10
11
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12
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14
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1
Purpose/ Purpose/ Outcomes 2
Output 3
Activities 4
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Description of Indicators Level of Objective Objective Outcomes
What it is
Inputs
Indicators
Biodiversity conserved Changes / Impacts Attitudes changed
Impact
Institutions changed Capacitated people
Outputs Activities
Examples
Products / Processes $ spent
Workshops held
Products / Process
People trained Dollars spent
Delivery
Eguipment supplied Riza Primahendra
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Example of Good Indicator Objective: “Conservation of keystone species” Indicator: • At the end of the fifth year (qualifier: when) • the population sizes (qualifier: what) • of species A, B and C (verifier) • within the boundaries of the park (qualifier: where) • have remained constant (target) • compared to X number at project-start level (baseline) Riza Primahendra
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Complete Project Planning Matrix Summary
Objectively Verification verifiable indicators methods
Goal
The villagers standards of income and nutrition in Papua grow
The income of villagers have grown by 5% compared to those from 2012
Country statistics of BPS
Purpose
The farmers use new cassava varieties in Papua
10 farmer groups used new varieties in 12/2011
Final project report
A system on multiplying with seeds of selected varieities is implemented
Results
Cassava variety resistant to drought and fungus
Identification of 2 hybrid varieties and 2 open pollination varieties in 12/2010
Research reports, publications
Agricultural inputs (tools, seeds) can be found at local markets
Activities
1.
2. 3. 4.
To obtain hybrid lines from universities To implement tests Measure harvest Analyze results
18 people/months Documentation of researchers the planning of the research proposal 24 technical people/months 24 million CFA
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Important assumption
Research method is appropriate for developing a technology that prevents losses
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Development of Project Planning Matrix Goals/Objectives/ Outcomes
Key Performance Indicator
Increase protected % of target areas of biodiversity region in target region protected from X% in Year 1 to Y% by Year 2 Reduce CO2 emissions from X in Year 1 to Y by Year 2
Baseline (Year 1)
X%
Reduction in X CO2 emissions
Target Target (Year 2) (Year 3)
Verification Means/Data Collection Strategy
Assumptions or Risks
Y%
Y
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Learning Block 3: 3
Implementing & Organizing CSR Program
Strategic CSR
• Education & job training • Safe working conditions • Diversity & discrimination • Health care & other benefits • Compensation • Layoffs
• Financial reporting practices • Governance & transparency • Lobbying for policy change • Stakeholder engagement
• Relationships with universities • Ethical research practices (e.g. animal testing, GMOs)
• Product safety • Conservation of raw materials • Recycling
Firm Infrastructure (e.g. Financing, Planning, Investor Relations)
Human Resource Management (e.g. Recruiting, Training, Compensation System)
Support Activities
• Procurement & supply chain practices (e.g. bribery, child labor, conflict diamonds, pricing to farmers) • Use of particular inputs (e.g. fur) • Utilization of natural resources
• Transportation impacts (e.g. greenhouse gases, congestion, logging roads)
Technology Development (e.g. Product Design, Testing, Process Design, Material Research, Market Research)
M
(e.g. Components, Machinery, Advertising, Services)
Inbound Logistics (e.g. Incoming Material Storage, Data Collection, Service, Customer Access)
Operations (e.g. Assembly, Component Fabrication, Branch Operations)
Outbound Logistics
Marketing & Sales
(e.g. Order (e.g. Sales Force, Processing, Promotion, Warehousing, Advertising, Report Proposal Preparation) Writing, Web site)
r g
After-Sales Service (e.g. Installation, Customer Support, Complaint Resolution, Repair)
Primary Activities
• Emissions & waste • Biodiversity & ecological impacts • Energy & water usage • Worker safety & labor relations • Hazardous materials
Value
a
Procurement
• Packaging disposal (e.g. McDonalds Clamshell) • Transportation impacts
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What buyers are willing to pay
• Disposal of obsolete products • Handling of consumables (e.g. motor oil, printing ink) • Customer privacy • Marketing & advertising (e.g. truthful advertising, advertising to children) • Pricing practices (e.g. antitrust practices, pricing to the poor) • Consumer information • Privacy 17
Stages of Implementing Social Responsibility Commitment & strategic decision
Understanding the context baseline
Participatory CSR Planning
Participatory Monitoring Evaluation
Effective Execution
Institutional setup & Partnering
Communicating CSR Riza Primahendra
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Sharing Responsibilities, Resources, and Coordination Tanggung jawab bersama
Tanggung jawab pemerintah
Peran perusahaan lain
LSM
CSR Program
Issue A
Objective A
Issue B
Objective B
Issue C4
Objective C4
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Koordinator
Nas
Pro
Bank
Adat
Donor
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Key Elements: LEADERSHIP Unit K: Akuntabel pada issue
Unit K: Koordinator
Perlu tim lintas departemen untuk kelola issue tertentu
HSSE
CSR Program
Issue A
Objective A
Issue B
Objective B
Issue C4
Objective C Riza Primahendra
Soc
PR
Engin.
Legal
Board
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Learning Block 4: 4
Monitoring & Evaluation
Dynamic of Influence Intervensi Program
Faktor Eksternal
Pengaruh Relatif
Inputs
100%
50%
Activities
Outputs
25%
Outcomes
12% Impact
Kita dapat mengontrol hasil secara maksimal sampai dengan activities, semakin jauh/lama intervensi akan semakin kecil pengaruh/kontribusi program karena banyak faktor yang berpengaruh. Sebagian besar faktor eksternal diluar kendali kita dan arahnya dapat berbeda dengan apa yang kita rencanakan. Riza Primahendra
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The Power of Measuring Results • If you do not measure results, you cannot tell success from failure • If you can not see success, you can not reward it • If you can not reward success, you are probably rewarding failure • If you can not see success, you can not learn from it • If you can not recognize failure, you can not correct it • If you can demonstrate results, you can win public support Riza Primahendra
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Monitoring & Evaluation Differences Monitoring
Evaluation
Clarifies program objectives Links activities and their resources to objectives Translates objectives into performance indicators and sets targets and baseline Routinely collects data on these indicators, compares actual results with targets Reports progress to managers and alerts them to problems
Analyzes why intended results were or were not achieved Assesses specific causal contributions of activities to results Examines implementation process Explores unintended results Provides lessons, highlights significant accomplishment or program potential, and offers recommendations for improvement
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Riza Primahendra Jl. Pulo Asem Utara A-20 Kel. Jati Kec. Pulo Gadung Cell: 0816865164
TERIMA KASIH
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