2. Responsibility of an organization for the impacts of its
decisions and activities on society and the
environment, through transparent and ethical behavior
that
 Contributes to sustainable development, health and
the welfare of society;
 Takes into account the expectations of
stakeholders;
 Is in compliance with applicable law and consistent
with international norms of behavior; and
 Is integrated throughout the organization and
practiced in its relationships.
2
(Adapted from “ISO 26000: Guidance on social responsibility ,” 2010 )

3. OBLIGATION
CHARITY OF
COMPANIES
PAID FOR
SEPARATE
FROM
FROM
PROFIT, NOT
BUSINESS
COSTS

4. Transform-
Elementary Engaged Innovative Integrated
ing
• Focus on jobs, • Companies begin • Companies begin • Companies begin • Full disclosure of
profits, and to introduce to pay real to integrate their what is happen-
paying taxes with philanthropy and attention to business models ing within the
a legal some degree of stakeholders more holistically company
compliance environmental • Adopt a more with corporate including
orientation management responsive citizenship negative
• Since there is no • Leadership stance to activities information via
corporate becomes aware stakeholders with • Responsibility social reports
citizenship of the need for a programs based management • “Changing the
strategy, “social license to on their interests • Leadership game” by
leadership tend operate” and needs begins to creating new
to be out of touch • Still reactive • Willingness to understand that ventures or
with issues and rather than engage with reputation crucial markets that have
relationships proactive CSOs and NGOs to success and pro-social
tend to be • Begin that have that corporate benefits
unilateral communicating concerns about citizenship is • Engage with wide
• When issues with CSOs and the business’ integral part in range of civil
arise from the NGOs on a practices developing society.
societal domain project basis • Willingness to reputation Governmental
they tend to react rather than begin being more • Incorporate and non-
defensively and systematically transparent external governmental
communicate and strategically through public assurance such enterprises
unilaterally multiple bottom- as responsibility • Leading on
line reporting auditing by sustainability and
outside agencies business-society
relationships
(“The Paradoxes in Communicating Corporate Social Responsibility,” Sandra Waddock and Bradley K. Googins in “The Handbook of 4
Communication and Corporate Social Responsibiliy” – Øivind Ihnen, Jennifer L. Bartlett and Steve May [eds.], 2011)

5. Chapter I Article 1 Paragraph 3
Social and environmental responsibility is the
commitment of corporations to participate in
sustainable economic development to
improve the quality of life and the
environment in ways that are beneficial to the
corporation itself, the local communities as
well as society at large.
5

6. Chapter V Article 74
2) Social and environmental
1) Corporations in the business responsibility as stipulated under
of and/or whose business paragraph 1) is a corporation’s
obligation that is budgeted and
relate to natural resources treated as costs of the corporation
must conduct social and and implemented with due
environmental responsibility consideration of propriety and
reasonableness
3) Corporations that neglect 4) Further legislation on social
their obligation as stipulated and environmental
under paragraph 1) will be responsibility will be
sanctioned under the established in a Government
prevailing laws Regulation
6

7. After more than 3 years, the implementing regulations as
stipulated under Article 74 paragraph 4) are yet to be issued, in the
meantime various government bodies at central and regional
levels are taking matters into their own hands, e.g.:
East Java government preparing Regional Regulation
(PERDA) to levy 2.5% of company profits for welfare in
the name of CSR
Minister for Improvement of Underdeveloped Regions
targets 65% from “CSR funds”
Minister for State-owned Enterprises to draft regulations
for “CSR funds” to promote sports and arts
Minister for Home Affairs to draft laws on a forum for
management of CSR in the regions under his auspices
7
7

8. Stakeholder engagement involves dialogue
between the organization and one or more of its
stakeholders
Stakeholder engagement can take many forms – it
can begin as a response by an organization to one
or more stakeholders and can take place in
informal or formal settings
Stakeholder engagement should be interactive and
is intended to provide opportunities for
stakeholders’ views to be heard – its essential
feature is that it involves two-way communication
(Adapted from “ISO 26000: Guidance on social responsibility,” International Organization for Standardization, 2010 ) 8

9. Level of Engagement Methods of Engagement
Consult  Surveys
 Focus groups
Limited two-way engagement: organization  Meetings with selected stakeholder/s
ask questions, stakeholders answer  Public meetings
 Workshops
 Online feedback mechanisms
 Advisory committees
Negotiate  Collective bargaining with workers through their unions
Involve  Multi-stakeholder forums
Two-way or multi-way engagement:  Advisory panels
learning on all sides but stakeholders and  Consensus building process
 Participatory decision making process
organization act independently  Focus groups
 Online feedback schemes
Collaborate  Joint projects
 Joint ventures
Two-way or multi-way engagement : joint-  Partnerships
learning, decision making and actions  Multi-stakeholder initiatives
Empower  Integration of stakeholders into governance, strategy and
operations management
New forms of accountability; decisions
delegated to stakeholders; stakeholders
play a role in governance
(“AA1000 Stakeholder Engagement Standard 2011 – Final Exposure Draft,” – AccountAbility, 2011) 9

10. Membership
Vision
Mission
To
Establishment
Toward Currently To be a
end sixty leading contribute
1998, initia domestic advocate of towards
lly in companies good creation of
response and sub- corporate good
to the sidiaries of citizenship corporate
Financial multi- in citizenship
Crisis nationals in Indonesia and to
Indonesia and be develop the
recognized capacity of
for it its develop-
ment
partners, in
cl. corp-
orations, S
MEs, gover
nment and
CSOs
10

11. Youth
Young
CSR for SME Eco-
Business Entrepre-
Better Enabling nomic
Ethics neurs
Life Network Empow-
Start-up
erment
Bi-annual
International
CEO Network Conference on
CSR
11

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