DEVELOPMENT MODEL OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM THROUGH INTELLECTUAL CAPITAL EMPOWERMENT

Transcription

1 DEVELOPMENT MODEL OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM THROUGH INTELLECTUAL CAPITAL EMPOWERMENT IN EFFORTS TO EDUCATIONAL EQUITY IMPROVEMENT (SURVEY IN BANDUNG) Wa Ode Zusnita 1), Ernie Tisnawati Sule 2), Layyinaturrobaniyah 3) Management Program, Universitas Padjadjaran 1) 2) 3) ABSTRACT The company has a social responsibility to provide public welfare and the environment. Social responsibility (corporate social responsibility) of the company can be activities in the fields of education, health, social, and environmental. The research we do to find out how CSR programs conducted by state-owned companies in Bandung and to make a model related to CSR education undertaken by the company. Based on a study of 35 state-owned enterprises in Bandung, CSR programs are often undertaken in the field of education and the environment. This study was conducted to (1) identify CSR programs in Bandung, (2) Identify the CSR programs in Bandung relating to

2 education, (3) Develop a training program (TOT) for intellectual resources (faculty, professional companies, and students) are associated with CSR programs in education, (4) Designing a model of CSR development in education so it can be used as a reference and material evaluation by the relevant parties for further development. The method used in this study is a cross sectional method is based on a literature review and survey (interviews, focus group discussions, and observation). Stages of research activities started from (1) phase of the study design, (2) preparation of the instrument, (3) sampling, (4) data collection in the field, (5) tabulation of data, (6) the selection and sorting of data, (7) data analysis, and (8) reporting. Based on the analysis of 35 questionnaires were obtained from 35 state-owned in Bandung, CSR include in education, health, environment, and economy. CSR in the form of educational programs conducted by 35 state-owned enterprises in Bandung is in the form of scholarships, as well as school facilities and infrastructure assistance. Keywords: Social Responsibility, Intellectual Resources I. Introduction A company in addition to its business activities also have a social responsibility to the environment around the company. Corporate social responsibility (corporate social responsibility) covers a wide range of productive activities by involving the community both inside and outside the company, and aims to provide for the welfare of the community and be able to develop and build people from various fields. Focusing company in the CSR

3 program based on the 3 things that profit, community, and environment. Several CSR programs such as education, health, environmental, and social. This study was conducted to determine what CSR programs conducted by 51 stateowned enterprises in Bandung. Associated with CSR programs, West Java government encouraged companies to increase funding for development of infrastructure and education to improve the competitiveness of local development and corporate excellence. Involvement of companies in the field of education is necessary to promote the quality of education. In addition, by running the CSR program will provide economic value to the company. Order for educational equity efforts can be achieved through the company's CSR program to establish partnerships with educational institutions and intellectual resources. Few things that will be examined is about how the role of the company through CSR programs contribute to the education, as well as corporate synergy between government, universities, and schools to increase educational equity and quality of education. Hopefully with CSR programs can increase interest in innovation and intellectual resources to succeed in education. II. Literature Review Kontler and Nancy (2005) describes the definition of Social Responsibility or Corporate Social Responsibility (CSR) is a business commitment to contribute to sustainable economic development, working with employees, their families, local communities, and society at large to improve the quality of life together. Human Capital is the knowledge, skills, and abilities that can be used to produce a professional services company that show collective ability to produce the best solutions

4 based on knowledge. According to Mayo (2000), human capital has five components, namely the individual capability, individual motivation, leadership, the organizational climate, and workgroup effectiveness. Each component has a different role in creating human capital company that ultimately determines the value of a company. Knowledge creation process conducted in a setting that is known as knowledge management (knowledge management). Knowledge management charge for managing knowledge that can be updated, used many times with ever increasing value that is directly proportional to the experience of the employee and the organization. Subsequently the application of knowledge management will lead to continuous innovation arising from the interaction between the knowledge of the parties involved in business organizations (Leiponen: 2003). This knowledge can be used as the basis for the organization as a source of innovation. III. Discussion 3.1. Research Methods The method of analysis used in this study is cross-sectional method, the study population 51 state-owneds. 8 state-owneds but no longer operate in Bandung, so the study population is only 43 state-owneds. The sampling procedure is the method of census, where sampling based on all members of the population studied. Units of analysis based on the indicators and the 5 dimensions of CSR.

5 Operationalization of variables are as follows : Variable Dimension Indicator How long company Voluntariness held the CSR program Kinds of CSR program CSR program Corporate Social Social partnership Responsibility (CSR) Benefits of CSR CSR Budgeting CSR Budgeting Economic Percentage The numbers of CSR program held in a year Number of Questionnaire B5 B6 B7 B8 B9 B10 B11 Knowledge Management Organizational Knowledge Management CSR program policy Value Prevailing of CSR programs decision making B12 C1 Stakeholders identification criteria C2 Identification and Intellectual Capital Relational Capital communication with local community C3 Publication and socialization of CSR C4 programs Data were collected by interview, observation, and focus group discussion.

6 3.2. Targets and indicators of success: Spesific Target 1. Identifying CSR programs of state-owned in Bandung. 2. Identifying CSR programs in Bandung related to education in Bandung. 3. Developing training program (TOT) for intellectual resources (faculty, professional companies, and students) are associated with CSR programs in education Success Indicator 1. Research articles published in accredited journals 2. Presentations at conferences / seminars / regional 3.3. Analysis of CSR Research Data: The results of a descriptive analysis presented in this progress report is drawn up a series of questionnaires (questionnaire) based on the operationalization of variables, followed by a survey conducted in 43 state-owned enterprises in Bandung. Based on the questionnaires that has been deployed, 43 SOEs targeted survey in this study was obtained only 35 (thirty five) SOEs responded to the questionnaire that has been given.

7 As distribution of data can be seen from the following diagram survey status : Companies no longer operate 16% Number of Respondent Not/not be responding 16% Respondent 68% Based on the analysis of data it is concluded that there 35 questionnaires that was filled with percentage 68%. Then the expected questionnaires collected is sufficient to represent the study population. The 8 companies that are not / not be responding, due to the 2 companies do not have a CSR section, 2 companies constrained disposition process, and 4 companies for which data should be required to headquarters in Jakarta. And 8 of the remaining companies, not found its existence based on the results of a review into the field.

8 Percentage Company Status Central Office 17% Branch Office 83% A total of 29 companies (83%) had the status of a branch office / regional in Bandung. And as much as 6 companies (17%) was the central office. CSR Data Program 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Education Health Environment Economic Others No Yes Based on the results of data processing, companies engaged in the field of CSR education by 32 companies (91%), in the field of health 27 companies (77%), in the field of environment 35 companies (100%), in the economic field 31 companies (89%) and

9 others as many as 27 companies (77%). Based on the data, the dominant CSR conducted for coaching and educational environment. CSR Forms Co-operation 9% Independently 20% Independently & Co-operation 71% Based on data from the form of the organization of CSR, companies are implementing CSR independently just as much as 7 companies (20%), which is cooperating with the other party as much as 3 companies (9%), and companies that do CSR, both independently and co-operation, as many as 25 companies (71%). It can be concluded that CSR is mostly done independently and in cooperation with other state enterprises.

10 Percentage Benefit of Implementing CSR Company's Image Others Yes Tidak 6 2 Based on the above diagram, obtained information that the 29 state-owned enterprises (83%) stated that the benefits after implementing CSR program is to improve the company's image. In addition, the 33 state-owned enterprises (95%) also expressed a lot of other perceived benefits company after implementing CSR programs. 3,1% - 5%; 3; 9% CSR Budget >5%; 1; 3% 1% - 3%; 31; 88%

11 Based on the results of the field survey, obtained findings that CSR budget to finance 88% said between 1-3% of the profit of the company acquired. 9% stated CSR 3.1% to 5% of earnings per year and the company acquired the remaining 3%, > 5% of the profit earned per year company. CSR Policy 8% 6% Centrally Not Centralized Centrally & Not Centraized 86% Based on the diagram above, it can be seen that there is a 86% or as many as 30 companies are implementing CSR policies centrally, while another 8% or as much as 3 company operates a policy of not centralized. And 2 companies (6%) implementing CSR policies both centrally and not centralized. From this data, in general, it can be concluded CSR is still the responsibility of the central enterprises to define policies related there.

12 CSR Value no value; 0; 0% value; 35; 100% Based on the diagram above, it can be seen that each state enterprises that have provided data, or as many as 35 companies run values in implementing their CSR programs. Stakeholder Identification No Identification; 1; 3% Hold Identification; 34; 97% Based on the above data, it can be seen that as many as 3% of companies do not hold stakeholder identification, while the other 97% do so. This means that CSR programs rolled out in general before state-owned enterprises have identified to design the right program for stakeholders.

13 Communication with Community No Communicati on; 3; 9% Hold Communicati on; 32; 91% Based on the data processing, the company that does the communication with the local community as much as 32 companies (91%) and who do not hold as much communication 3 (9%). CSR Publication No Publication; 0; 0% Hold Publication; 35; 100% Based on research data that all companies surveyed implement the publication of the CSR programs that are run through the print media.

14 IV. Conclusions and Recommendation Conclusion Based on data processing from 35 questionnaire obtained, it can be concluded that CSR conducted several state-owned in Bandung and Jakarta including the education, health, environment, and economy. CSR is dominant in the field of education and the environment, in which the execution of the program carried out independently and in cooperation with third parties. Benefits gained by implementing CSR programs are able to improve the company's image and provide benefits for the company. CSR budget ranges from 1-3%, where the implementation of CSR policies centrally and after the policy submitted to the respective branches. Organizing CSR policies based on the values prevailing in the company, which made the identification of stakeholders, the communication with the local community as well as the publication of the CSR program. Recommendation It takes time to optimize data collection and because there are still some who do not fit the list so that the collection of data less than the maximum. The next step is to follow up the other questionnaires and make publication for the research. After this research, authors try to continue the research with the same topic and model implementation with pilot project.

15 References Dahlsrud How Corporate Social Responsibility Is Defined An Analysis Of 37 Definitions. Corporate Social Responsibility and Environmental Management. Vol. 15. Cendani, Dea and Tjiptohadi Sawarjuwono Corporate Social Responsibility: The Efforts To Understand the Rationale Behind the Disclosure of CSR in Education. Accountant & Auditing Jurnal 95. Volume 8/No. 2/May 2012: Grunig, James E & Todd Hunt Managing Public relations. Chicago: Holt, Rinehart and Winston, Inc. Kotler, Philip and Lee, Nancy Corporate Social Responsibility Doing the Most Good for Your Company and Your Cause. New Jersey: John Wiley and Sons, Inc. Leiponen, Aija Organization Of Knowledge and Innovation: The Cases of Finnish Business Service : Industry and Innovation Sidney. Vol 122 p Mayo, A., The Role of Employee Development in The Growth of Intellectual Capital, Personal Review, Vol. 29, No emerald-library.com Mulyandari, Retno S.H., Swastomo,Wasidi., Tri Wibowo, Cahyono., Situmeang, Ilona CSR Implementation To Support Peoples Development Through Education Improvement. Paper. Bogor Agricultural University. (National Seminar Development Communication Supports Improving the Quality of Human Resources In Community Development Framework ) Munilla, L. S & Miles, M. P The Corporate Social Responsibility Continuum as A Component Of Stakeholder Theory. Business And Society Review. Vol. 110, No. 4, pp:

16 Narahudita, Dea Cendani., Tjiptohadi Sawarjuwono Corporate Social Responsibility : The Efforts To Understand the Rationale Behind the Disclosure of CSR in Education. Airlangga University. Nonaka Ikujiro and Hirotaka Tekauchi The Knowledge Creating Company How Japanese Corporation Create The Dynamic of Innovation. Oxford University Press, New York. Su adah Empowering Local Communities Through Corporate Social Responsibility Program. The University of Muhammadiyah Malang. Malang. WBCSD What does GRI-Reporting tell us about Corporate Sustainability?. Energy Efficiency in Buidlings-Business realities and opportunities. Available at Wibisono, Yusuf. Dissect the Concept & CSR (Corporate Social Responsibility) Application. Gresik. Fascho Publishing, 2007, page.7.

17 Authors Bio Dr. Wa Ode Zusnita Muizu, SE., MSi., earned a Bachelor of Economics (SE), Department of Management Haluoleo University, graduating in 2000 She earned a Master of Science (MSi) Graduate Program in Magister Management Padjadjaran University, graduating in She earned Doctoral Graduate Program Padjadjaran University, graduating in 2008, now she became a Lecturer in the Faculty of Economics and Business, Padjadjaran University. Prof. Dr. Ernie Tisnawati Sule, SE., MSi., earned a Bachelor of Economics (SE), Department of Management Padjadjaran University, graduating in She earned a Master of Science (MSi) Graduate Program in Magister Management Padjadjaran University, graduating in She earned Doctoral Graduate Management Program Padjadjaran University, graduating in 2006, now she became a Lecturer in the Faculty of Economics and Business, Padjadjaran University. Layyinaturrobaniyah, SE., M.Si.., earned a Bachelor of Economics (SE), Department of Management, Gadjah Mada University, graduating in She earned a Master of Science (MSi) Master of Management Graduate Program, Gadjah Mada University, graduating in 2008 Now a lecturer at the Faculty of Economics and Business, Padjadjaran University.