Corporate Social Responsibility Program Assessment Study for Micro Small and Medium Scale Enterprises (UMKM)

12 December 2013 | admin
Project At Glance
Country Indonesia
Region Yogyakarta City
Name of Client Office of Trading, Industrial, Cooperation, and Agriculture, Yogyakarta City
Address Kompek Balai Kota Jalan Kenari No. 56 Yogyakarta
Duration of Assignment 3 months
Start Date October 2013
Completion Date December 2013
Prinsipal Investigator Dr. Agus Joko Pitoyo, M.A.
Principal Investigator (Not on the list)
Research Team Sumini, S.Si., M.Sc., Yam'ah Tsalatsa Abritaningrum, S.IP, M.P.A.
Research Team (not on the list)
Profiles of Professional Staff Provided by The Center Population Specialist, Public Policy Specialist

CPPS studied the corporate social responsibilities (CSR) programs which being conducted by Companies/state enterprises (SOEs) or private companies in Yogyakarta City as their form of social responsibilities. The result shows that there were various understanding regarding CSR program among them. Some to be mentioned are (a) CSR was considered as an expenses (cost center) and did not provide profit in a short term, (b) CSR program was one of the company’s marketing strategies (public relation) or (c) as one of the company’s imaging, (d) CSR program was identical to the main product produced by the companies and/or the company’s mission. These understanding implicated the form of CSR activities the companies conducted, which mostly were in form of community development, but still tended to be a charity. In fact in some companies, the aid programs were just incidental, depending on the society demand, but a systematical need assessment program was not preceded.  CSR program also has not been institutionalized within the company. It was shown by several indicators, namely (1) some of the companies in Yogyakarta City (private and state) did not yet have CSR program. (2) Most of the private companies and SOEs did not have a division or a specific section which dealing with CSR programs. (3) CSR program could not be separated from the budget issue. For SOEs, the budget allocation for CSR programs depended on the central policy so that the SOEs in the region did not have the leeway to develop CSR programs, especially for the development of SMEs. For some private companies and SOEs in Yogyakarta City, there was no specific budget allocation for CSR programs. For example, one of the SOEs put CSR budget into promotion budget. (4) There has been no systematic and continuous plan of CSR programs; as mandated by the rules. Next are some recommendations from the study. (1) There is a need of local regulation in Yogyakarta City regarding CSR which regulated the rights and obligations of the business actors in Yogyakarta City region. (2) The role of government as the facilitator should be enhanced. (3) There is a need of cooperation between various stakeholders and a comprehensive study in preparation and development of CSR program in Yogyakarta City.

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