1. Why do companies have to do CSR?

a. CSR (Corporate Social Responsibility) has a very important role both for the
community and for the company itself. Because with the existence of CSR, besides
this, it is beneficial for the community, namely by having activities that encourage
community empowerment, the existence of this CSR will also help companies in their
efforts to smoothen company operations so that they are free from interference. The
implementation of corporate social responsibility does not only have logical
consequences for the good or bad image of the company in society. The
implementation of Corporate Social Responsibility also plays a role in improving the
performance and company resources that are getting better than before.
b. The better the relationship between a company and its stakeholders, the greater the
chance for the company to develop. The good relationship between the company and
stakeholders can be seen from how the company carries out CSR. The existence of
CSR in a company itself plays an important role. The CSR program is an investment
for a company. Basically, CSR has a function as part of corporate risk management.
With the existence of CSR, social disruption due to environmental pollution has
decreased, so that the company gets support from the local community. Companies
that are responsible for the environment indirectly minimize the occurrence of
environmental conflicts around the company. This also has an impact on a more
secure supply of raw materials in the long term. In addition, CSR can improve the
company's image, strengthen the company's brand, expand access to the market, get
plus points compared to competitors who do not implement CSR, and the opportunity
to get an award.
c. Keraf (1998) mentions the need for corporate social involvement, namely: the
● needs and expectations of society are increasingly changing, society is increasingly
critical and sensitive to the products they are buying. So that the company cannot just
focus on making a profit.
● limited natural resources, businesses are expected to not only exploit limited natural
resources, but must also maintain and use resources in a party.
● the better social environment, the social environment will support business success for
a long time, the better the social environment will automatically improve the existing
business climate.
● a balance of responsibility and power, too much power if not balanced and controlled
with social responsibility will cause business to become a destructive force for
society.
● long-term benefits, with social responsibility and involvement create a positive image
in the community, due to the creation of a social and political climate that is
conducive to the company's business expansion.
d. CSR is a form of participation of the business world in sustainable development to
develop corporate awareness programs for the surrounding community through the
creation and maintenance of a balance between making profits, social functions, and
preserving the environment. CSR is an important issue in ensuring the survival of
today's business world. The business world will not be able to develop without paying
attention to the situation and conditions of the social environment in which the
company so that the implementation of CSR becomes a necessity for the company in
supporting its business activities, not just the implementation of responsibility but an
obligation for the business world
e. According to Bhatt, 2002: 6) there are three the reasons why the company is
conducting CSR The
● company must at least comply with national regulations. Likewise with
multinationals who must comply with applicable laws, agreements, conventions or
international standards.
● Risk minimization. More than just compliance, companies must be aware of the real
and potential impacts socio-economically, politically and environmentally. Based on
this awareness, companies must develop and implement policies and procedures to
minimize any damage or loss that may result from company operations or from
business partners.
● Value Creation. More than just compliance and minimizing damage, companies can
create positive social value by engaging the community in them (engaging in), such
as social investment innovation (innovative social investment), consultation with
stakeholders, policy dialogue, and building institutions. community (building civic
institution), either independently or together with other companies.

2. Types of CSR
As for the form of corporate social responsibility such as:
a. Social responsibility to consumers

Corporate social responsibility to consumers is not only about providing products or

services but also must pay attention to other aspects. Referring to the utilitarian
approach, companies must produce products or services that have many benefits to
society.

b. Social responsibility to employees The

company must provide a sense of security and comfort to employees, treat employees
fairly. In addition, the company also provides opportunities and facilities for
employee self-development.

c. Social responsibility to creditors

For example, when a company has to settle its obligations or debts, but it is having
financial problems, the company is obliged to notify creditors.

d. Responsibility to theshareholders is

Company'salso responsible to the shareholders. So that in its operations, the

company must also ensure that decisions taken are also in the interests of
shareholders.

e. Social responsibility to the environment

This responsibility is related to the environment, for example by not littering,

preventing pollution around business premises, preventing the use of hazardous
materials. So the company is expected to be friendly to the environment.

f. Social responsibility to the community

This social responsibility can be done by providing corporate social responsibility or

CSR. Providing assistance such as infrastructure for education, health,
infrastructure, business containers or other things needed by the community.

CSR

1) Economic Forms of
 In this type, CSR is implemented limited to those aspects that are in accordance with
company responsibility, namely producing useful products. Companies must not
cause damage, make efforts to prevent damage, and make the world a better place

2) Philanthropic Forms

In the philanthropic CSR program, companies feel they have an obligation to

encourage good things by sponsoring activities organized by institutions, schools,
museums, and other. There are programs that are carried out purely for social
purposes, some are aimed at gaining a good reputation.

3) Forms of Social Networking

Companies are also part of society that must fulfill their obligations and comply with
applicable ethics. Companies should not only carry out activities for their own
benefit, but also to provide benefits to stakeholders, including the community.

4) Integrative Form

In this type, the CSR program is a means of integrating profit and corporate social
responsibility. Management must ensure that businesses can operate in accordance
with social values because the company depends on society for its continuity, growth,
and existence

Trevino and Nelson also conceptualize CSR, namely as a pyramid consisting of 4

types of responsibilities that must be considered, namely on an ongoing basis,
namely, law. , ethics and being human.

● Economic
● responsibility Legal
● responsibility Ethical responsibility
● Corporate social responsibility

Kotler and Lee mentioned six categories of CSR activities

1) Cause Promotion (promotion of social activities) is a company providing funds or

other resources owned by the company to increase public awareness of social activities or for
support fundraising, participation from the community or recruitment of volunteers for a
particular activity.

2) Cause Related Marketing (marketing related to social activities). In this activity, the
company has a commitment to donate a certain percentage of its income for a social activity
based on the amount of product sales. These activities are usually based on certain sales, for a
certain period of time.

3) Corporate Social Marketing (corporate social marketing), in this activity, the company
develops and implements campaigns to change people's behavior with the aim of improving
public health and safety, preserving the environment and improving community welfare.

4) Corporate Philanthropy (corporate philanthropic activity), in this activity the company

makes direct donations in the form of donations to certain groups of people. These donations
are usually in the form of cash giving, gifts / assistance packages or free services.

5) Community Volunteering (voluntary community social workers), in this activity, the

company supports and encourages employees, retail partners or franchisees to set aside their
time voluntarily to help local community organizations and communities that are the program
targets.

6) Socially Responsible Business Practice (business practice that has social

responsibility), in this activity, the company carries out business activities beyond the
business activities required by law and carries out investments that support social activities
with the aim of improving community welfare and preserving the environment.

3. What company does the CSR

Where, CSR activities are not only required for companies engaged in or related to natural
resources, but also for all companies, including SME-scale companies, newly established or
in a loss condition.

a) PT Telkom Indonesia

Indonesia Digital Learning (IDL) is a CSR program from PT Telkom Indonesia that seeks to
encourage a change in the digital paradigm for teachers in the country. This program has
succeeded in increasing the competence, skills and quality of teachers through the use of
information and communication technology

b) PT Unilever Indonesia

producer of household products, has many CSR programs through its products, including a
hand washing campaign with soap (Lifebuoy), preservation of Indonesian culinary delights
(Bango soy sauce), and oral health education (Pepsodent).

c) PT Pembangkitan Jawa Bali

In carrying out its CSR program, the company has launched a Community Academy program
which provides D1 Electricity scholarships to communities around the generating unit. After
graduation, the scholarship recipients will be employed in the generating unit.

d) PT Bank Mandiri

The CSR program organized by Bank Mandiri is usually about developing micro, small and
medium enterprises (MSMEs). This is in line with the main focus of Bank Mandiri's CSR,
which is to encourage growth in the level of social welfare. Through the implementation of a
sustainable CSR program, Bank Mandiri wants to achieve business success along with
improving the welfare of the Indonesian people. The programs organized by Bank Mandiri
are Mandiri Young Entrepreneurs, Mandiri with Mandiri, and the Spirit of Prospering the
Country.

e) PT Astra International Astra's

CSR program is called the four pillars of Astra's Social Contribution program, namely
Health, Education, Environment and Entrepreneurship. The aim is to create social
contributions that have more added value and benefit to the Indonesian people as Astra's
effort to position itself as part of the existing ecosystem in Indonesia.

f) Gudang Garam

● Pendidikan : In 2013, Gudang Garam continued to provide scholarships and

assistance to renovate schools and classrooms as well as school facilities such as
desks, chairs, bookcases, stationery, laptops and uniforms. open internship
 opportunities at the Company for students and university students, as well as serve
academic visits / comparative studies from various educational institutions.

● Health : In 2013, 1,000 Gudang Garam employees donated blood in a blood donation
program organized by the Indonesian Red Cross. In collaboration with a team of
expert doctors at the Kediri Regional General Hospital, the Company also provided
free surgical assistance to 23 cleft lip patients who came from poor families. With the
help of a team of doctors and hospitals, Gudang Garam organized a program of free
health checks and medical treatment for villagers in Kediri.

g) PT Pertamina

Pertamina is committed to implementing its CSR program by assisting the Indonesian

government in improving the Human Development Index (IPM) in the archipelago through
the implementation of programs that can help achieve development targets and build
harmonious and conducive relationships with all stakeholders to support the achievement of
goals. the company especially in building the company's reputation.

h) PT Sinde Budi Sentosa (Cap Badak Solution)

PT Sinde Budi Sentosa carries out a CSR program by preserving the habitat of Javan Rhino
in Ujung Kulon National Park. This program is in collaboration with Sinde and WWF
Indonesia. In which Sinde donated funds from the proceeds of her sale for the Javan Rhino
conservation program in Ujung Kulon.

i) Danone (Aqua Mineral Water)

Danone carries out a CSR program known as WASH (Water, Access, Sanitation, Hygiene
Program) which aims to improve environmental welfare and contribute actively and
sustainably to provide solutions to problems related to the provision of clean water in
Indonesia. This program is better known as "1 Liter Aqua for 10 Liters of Clean Water"

j) PT Pembangunan Jaya Ancol Ancol

CSR Program consists of 5 main programs which include the Education Program,
Environmental Management Program, Community Social Program, Operational Activities
and Emergency Response Program. All these CSR programs run simultaneously and
continuously. There are many CSR programs that have been running and developed,
including the ANCOL SAYANG LINGKUNGAN (ASL) Program, ANCOL RAKYAT
SCHOOL (SRA) and TEENS GO GREEN.