Corporate Social Responsibility Principle

The concept of social sustainability surfaced as the continuity of the concepts of economic sustainability and environmental sustainability. These three pillars serve as the key milestones in the development of the Corporate Social Responsibility (CSR) concept. Social responsibility is the commitment by businesses to act in an ethical manner, operate legally and contribute to the improvement of the quality of live of their staffs, the local community and the greater community. The concept of social responsibility requires the active and dynamic participation of the government, businesses and the local community.

Social responsibility initiative has become an essential activity for every company in operating its business. In general, social responsibility initiative provides a way to strengthen a company’s business, which entails balancing the health of the economy, the market and the community. It is important to underline the fact that social responsibility is a means through which the economic welfare can be developed. It means that a company does not need to continually pursue attainment of a larger economic scale to ensure the survival of its business, but it is also imperative for a company to care for the equilibrium of its surrounding environment, particularly the surrounding community.

The Company in this case views social responsibility as a means to support the government in attaining its goals to improve the people’s welfare. The Company understands that this concept is far from the mere concept of indirect-branding, which solely serves the purpose of promoting a company’s products and business. Instead, the Company believes that sincerety and genuineness must serve as the underlying factors in all execution of social responsibility initiative for the sake of advancement of the surrounding environment and the community.

To guide the Company in formulating its social responsibility program, the Company adopted the carrol pyramid concept consisting of 4 (four) layers of responsibilities in business operation. At the bottom or at the foundation of the layers lies the definite responsibility of the company to maintain stability from the onset of its operation by increasing incoming cash flow. At the second layer, the Company must operate in compliance to the prevailing laws and regulations of the government. At the third layer, the Company shall hold itself accountable in upholding the ethical values in operating its business. The ethical values referred to by this study represented the moral, justice and human rights values. Sitting at the top layer lies the company’s responsibility to participate in improving the community’s welfare, such as for example by providing donations and support in the field of culture, education, health and others.


Corporate Social Responsibility

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