CSR Trend in Indonesiaindonesien.um.dk/en/~/media/Indonesien/Documents/DBP/Update on CSR... · Update on CSR Status & Trend in Indonesia Maria Dian Nurani Making CSR an Integrated

Update on CSR Status & Trend in Indonesia

Maria Dian Nurani Making CSR an Integrated Part of Your Business Workshop – Jakarta, 22 January 2014

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Outline

• Global initiatives & standards in Indonesia

• Local requirements vs global standard

• CSR Practices in Indonesia

Global Initiatives & Standards

• UN Global Compact – Individual pledge 2002 – IGCN established in 2006 – 111 members by 2014

• Global Reporting Initiatives – Introduced by MoE in 2005 – Awards by NCSR since 2005

• ISO 26000 Guidance on Social Responsibility – Indonesia NMCSR established in 2005 – Agreed and launched in Nov 2010 – Adopted identically as SNI 26000:2013

Definition of Social Responsibility

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, including 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 NOTE 1 Activities includes products, services and processes NOTE 2 Relationships refer to an organization’s activities within its sphere of influence

ISO 26000:2010 – Guidance on :

ISO 26000:2010 - Panduan mengenai:

Concept, term, definition


Background, trends, characteristics


Principles & practices


Core subjects & issues


Integrating, implementing and promoting socially responsible behavior in the

organization & it’s sphere of influence


Identifying & engaging stakeholders


Communicating commitment, performance, & other information


Voluntary initiatives

ISO 26000:2010

Assisting organization to contribute to

Sustainable development

ISO 26000:2010 & SNI 26000:2013

• Identical adoption

ISO 26000 & UN Global Compact

http://www.unglobalcompact.org/docs/news_events/8.1/UNGC_ISO_Final.pdf

ISO 26000 vs UN Global Compact

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• Due diligence • HR risk situation • Complicity • Grievances • Discrimination • Civil & political rights

• Economic, social, cultural rights

• Fundamendal rights at work

• Employment relationship • Condition of work & social

protection • Social dialogue

• Health & safety • Human development &

training

• Pollution prevention • Sustainable resources use • Climate change

• Biodiversity & natural habitat

Human Right

Labour

Environment

*note: UN Global Compact principles in bold

Governance - Relates to all core subjects -

ISO 26000 vs UN Global Compact

1/28/201 4 18

• Marketing & contractual practices

• Health & safety • Sustainable consumption • Service, support,

complaint, dispute

resolution • Data protection & privacy • Essential services • Education & awareness

• Community involvement • Education & culture • Employment & skill

development • Technology devt. & access

• Wealth & income creation • Health • Social investment

Consumer

Community involvement & development

• Anti corruption • Political involvement • Fair competition

• Promoting SR in value chain

• Property rights

Fair operating practices

*note: UN Global Compact principles in bold

ISO 26000 & GRI

1. ISO 26000 provide structure for companies to organize measurable activities

2. GRI provide structure for companies to report their performance

https://www.globalreporting.org/resourcelibrary/How-To-Use-the-GRI-Guidelines-In-Conjunction-With-ISO26000.pdf

Voluntary

Legal

requirement

Compliance to law & regulation

Local Regulations vs ISO 26000

Social Responsibility

(ISO 26000)

Article 74, UU No. 40/2007 PP No. 47/2012 Permen BUMN No. Per-05/MDU/2007 Local government regulations Local CSR Forum

Common practices

1. Common perception & expectation: 1. Charity & philanthropy

2. Community development

2. Labor issues – minimum wages

3. Environmental management

4. Good governance

5. Fair operating practices

6. Consumer issues

7. Human right

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Terima kasih Maria Dian Nurani [email protected]