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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