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
ISO 26000:2010 - Panduan mengenai:
Background, trends, characteristics
ISO 26000:2010 - Panduan mengenai:
Principles & practices
ISO 26000:2010 - Panduan mengenai:
Core subjects & issues
ISO 26000:2010 - Panduan mengenai:
Integrating, implementing and promoting socially responsible behavior in the
organization & it’s sphere of influence
ISO 26000:2010 - Panduan mengenai:
Identifying & engaging stakeholders
ISO 26000:2010 - Panduan mengenai:
Communicating commitment, performance, & other information
ISO 26000:2010 - Panduan mengenai:
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
17
• 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