REACTION PAPER GROUP 8

PRATIWI BESTARI 1610532017

RATU SHAVIRA 1610532025

CSR
Along with the development of global environmental issues, the concepts and
applications of CSR are increasingly developing, including in Indonesia. CSR is not only a
corporate social obligation, but also linked as a concept of sustainable development.
Unfortunately, due to the lack of standard rules and the same understanding of community
empowerment, most corporations in Indonesia have not implemented real CSR principles.
The implementation of CSR by companies in Indonesia turns out to be largely motivated
by efforts to reduce conflicts between companies and surrounding communities, some
companies are indeed able to raise the status of CSR to a higher level by making it part of
efforts to brand building and improve corporate image. But these CSR efforts are rarely used
as part of the company's strategic planning.
Until now, there are still many parties who oppose the implementation of CSR, although
of course there are business people and related stakeholders who have realized and agreed on
the importance of companies to implement CSR programs. The process of establishing a
Limited Liability Company Law in Indonesia - which in one of its articles (article 74)
requires companies to carry out social and environmental responsibilities, has led to pros and
cons. This shows that there are not many business people in Indonesia who support CSR
programs, for example the case of the Brantas Lapindo Mudflow in Sidoarjo and the Freeport
case in Papua. All of that relates to business activities that do not care about the social and
natural environment. The slackness of the implementation of CSR does not only occur in
Indonesia, but also in almost all countries including developed countries.
A. Arguments Against the Need for Corporate Social Engagement
1. Companies are economic institutions whose main purpose is to pursue profits, not a
social institution. Loudest argument against the company's involvement in the
activities of sosial as a form of CSR implementation there was a basic understanding
that the company's main goal is the pursuit of profit maximization. That means that all
existing company resources must be used as economically and efficiently as possible
to get the maximum profit. So the concept of corporate involvement in various social
activities must be challenged because it will cause inefficiency in many aspects.
2. The attention of company management will be fragmented and confusing if the
company is burdened with many objectives. The success of the company in modern
business is full of intense competition which is determined by the concentration of all
fields in the company, especially the concentration of company leaders. Social
involvement as a manifestation of corporate social responsibility requires special
attention from the leadership of the company, until later it will divert even disrupt the
attention. Divided and confusing attention can ultimately harm the company because
it will reduce the overall performance of the company. Likewise, once a company is
involved in social activities, the more demands and demands for social involvement
disrupt the company's core business.
3. The cost of social activities will be added to the price of the product so that it will
harm the community itself. The reason for this argument is that the costs used for
corporate social involvement are not costs provided by the company, but costs that
 have been calculated as one component in the price of goods and services offered in
the market. So in the end who will bear the cost of social engagement adne of the
public, especially the consumers themselves. Externally, the costs of social activities
will weaken the competitiveness of companies in global business because the prices
offered by these companies are higher than other companies that do not charge for
social activities.
4. Lack of skilled workers in carrying out social activities. The involvement of
companies in social activities means that companies pursue moral and social
activities. Even though the leadership of the company is not skilled in such activities.
They are only professionals in the business and economic fields. So that additional
staff will be needed to handle the company's social involvement. The demand that
companies participate in efforts to progress difficult communities is filled with

B. arguments that support the need for corporate social involvement.

1. Public awareness is increasing and increasingly critical of the negative impacts of
corporate actions that damage nature and harm the surrounding community. Every
business activity is intended to bring maximum profit. However, companies must
remain sensitive to people's needs and expectations. At present the community still
needs goods and services with good quality and competitive prices. But the
community also demands that the goods be produced by respecting the rights and
interests of employees and must be environmentally friendly. This is in line with the
emergence of awareness of human rights and global warming. So, social involvement
even though it can properly interfere with the focus of management in an effort to
gain maximum profit, but it will not really weaken the performance of the company. It
will support the success and success of the company.
2. Natural resources are increasingly limited. Based on the fact that the earth has limited
natural resources. Business actually takes place in this condition, which means that it
must be able to use responsibly and wisely the limited natural resources to meet
human needs. Thus, businesses are expected not only to exploit natural resources for
economic gain alone, but also to carry out certain social activities aimed at preserving
natural resources. These social activities seem to weaken the efficiency of the
company, but not entirely true. Particular concern for the preservation of existing
natural resources will encourage the use of natural resources efficiently.
3. Creating a better social environment. Business takes place in a social environment
that supports the continuity and success of the business for a long period of time. This
has ethical implications that businesses have moral and social obligations and
responsibilities to improve their social environment in a better direction. The
company's social involvement in helping to improve the social and economic
conditions of the surrounding community, for example providing training and
accommodating workers from the surrounding community, is likely that the
surrounding community will be more receptive to the presence of the company. If in
the end the community's level of life is improved, it will certainly increase people's
purchasing power which impacts on the absorption of the company's products. This is
a distinct advantage for the company.
4. Business has useful resources. This argument would like to convey that the company
actually has potential and beneficial resources for the community. The company has
professional staff in all fields that can be donated for the benefit of community
progress. Those who are professional in solving various business problems will be
useful to help solve social problems faced by society.
5. Creating long-term benefits. The involvement of companies in various social
activities will bring a positive value for the development and continuity of long-term
business Employee education, environmental sustainability, improvement of public
infrastructure, and improvement of environmental health may require large costs but
are included in investments that will benefit the company due to activities it helped
create a social political climate conducive to business continuity. The costs of these
social activities are not always imposed on the prices of products offered to the
market. Many companies actually set aside some of their profits for social activities as
a kind of remuneration for public trust in the company. This will eventually establish
an inner bond between the company and the community. With the existence of
corporate social responsibility, a more positive image of the business profession will
be formed. Business no longer appears as a dirty and fraudulent profession or a scary
monster that cannot be avoided. Business people also appear as professionals who not
only pursue profits, but also as people who have a moral commitment to the rights and
interests of others.