Syaparman, Sri Suwitri, Etty Sosilowati, Hartuti Purnaweni, Public administration doctoral program Faculty of social and political sciences Diponegoro university, semarang, Indonesia E-mail: [email protected]
SUPPORTING AND RESTRICTING FACTORS OF CORPORATE SOCIAL RESPONSIBILITY (CSR) PROGRAM OF POLICY IMPLEMENTATION AT THE COAL MINING COMPANY IN LAHAT DISTRICT
Abstract. CSR Program is an investment for the company. Sustainable growth no longer considered as a center of cost (costcentre) but as a means to benefit (profitcentre). CSR Program is a commitment of the company to support the creation of sustainable development. The impact of CSR for all companies in the world depends on the nature of the company. Based on The research on The Millennium Poll on CSR (1999) conducted by Environics International (Toronto), Conference Board (New York) and Prince of Wales Business Leader Forum (London). It was explained that 25.000 respondents in 23 countries showed that In shaping opinions about the company, 60% of respondents said that business ethics, employee practice, environmental impact, corporate social responsibility (CSR) will be the most instrumental, while for 40% of respondents say That the company image & brand image will most influence their impression. In implementation analysis, there are two approaches, namely, the first, the compliance approach. Second, what perspective is going on? This approach sees the implementation of a policy of all things, assuming policy implementation involves and link by all sorts of variables and factors. The implementation of the policy is an evaluation analysis, with the consequences of more reviews that returning from a prospective that has a purpose. Namely: (a) providing information to (the) policymakers on how to Their programs are underway or executed and (b) demonstrate factors that can become advocates and barriers in the process of implementing CSR program policies, to then provide alternative new policies or find ways Other implementations.
Keywords: CSR, Sustainable Grpwth, Company Image, Brand Image and Policy Implementation.
I. Introduction and/or related to natural resources must carry out
The Corporate Social Responsibility abbreviated the responsibility Social and environmental respon-
as CSR Program has begun to emerge in Indonesia sibilities; 2) Social and environmental responsibility
since its disappearing in (Republik Indonesia, 2007) as referred to in paragraph (1) shall constitute the
about the Limited Liability Company and (Indone- obligation of the company, which is considered and
sia, [1]) on capital investment. The contents of the accounted as the cost of the company in which the
law relating to the CSR, namely in Law of Article implementation implemented by paying attention
74 (Republik Indonesia, 2007), stated: 1) the com- to the compliance and fairness; 3) The company
pany that conducts its business activities in the field that does not carry out the obligations referred to
in paragraph (l) sanctioned according to the provisions of legislation; 4) Further provisions on social and environmental responsibilities governed by government regulations.
Corporate Social Responsibility (CSR) Program is an investment for the company. Sustainable growth no longer considered as a center of cost (cost centre) but as a means to benefit (profit centre). CSR Program is a commitment of the company to support the creation of sustainable development. On the other hand, the community questioned whether the company that is oriented towards the efforts to maximize the profit has a moral commitment to distribute part of its profit to build local communities. Because along with The passage of time society no longer merely demands companies to provide the goods and services they need, but also demands the company to be responsible for their social and environmental problems.
The impact of CSR for all companies in the world depends on the nature of the company. Based on The research on The Millennium Poll on CSR (1999) conducted by Environics International (Toronto), Conference Board (New York) and Prince of Wales Business Leader Forum (London), it was explained that 25.000 respondents in 23 countries showed that In shaping opinions about the company. 60% respondents said that business ethics, employee practice, environmental impact, corporate social responsibility (CSR) will be the most instrumental, while for 40% of respondents say That the company image & brand image will most influence their impression. Only 1/3 underlies its opinion on fundamental business factors such as financial factors, company size, corporate strategy, or management. Further, the attitude of consumers to companies that judged not to do CSR is to want to "punish" (40%) and 50% will not purchase products from the company in question and talk to others about the shortage of such companies.
According to previous research such as research by: (Yaparto K., & Eriandani [19]), the research results showed some programs still have not seen the
principle of transparency, accountability, responsibility, independency and fairness in CSR programs that have been conducted. Implementation of CSR program has not supported by management because the company does not have planning and budgeting for CSR activities. Later research by Jiuhardi, [3] concluded some things, namely CSR has been generally done well by the coal mining company, but a small part is doing well, most are still lacking and even impressed The implementation of random, it is caused by the condition of the company underprivileged and the rules on the implementation of CSR is unclear.
Similarly, research by (Thionardo & Goestaman [14]), concluded that the planned CSR program almost entirely can be implemented, however in the implementation there are still weaknesses, so the results of Its implementation is not maximized. (Sari, Mulyana, & Alfitri [11]), showed that the implementation of environmental CSR program PT Semen Baturaja (Persero) TBK can be concluded that the implementation of environmental CSR program PT Semen Baturaja (Persero) TBK influential Social economic conditions in the ring area I of Ogan Komering Ulu regency.
The growth of the coal industry has grown considerably in the past 10 years. Until 1997, Indonesian production amounted to 13.2 million metric tons and increased by 3 times or 243 percent in 2007 to 53.3 million metric tons. In 2007, Indonesia listed as the seventh largest coal producer in the world, and placed 2nd as a coal exporter with total exports of 202 million metric tons. State revenues from the coal sector continue to experience a significant increase from year to year. It is starting from 2.57 trillion in 2004 to 8.7 trillion in 2007. In 2009, the contribution of coal recorded more than 10 trillion (Office Department of Mines and Energy in Lahat District, 2013).
Furthermore, the results of the survey conducted by (Suprapto [12]) against 375 companies in Jakarta said: that 166(44.27%) The company does not conduct CSR and as much as 209(55.75%) the company that conduct CSR. The CSR that implemented by
the company depends heavily on the company's own CSR programs in several coal-mining companies management desires. in Lahat district are as follows:
Table 1.- CSR Program of coal mining company in lahat regency of south sumatera province
No Company Names CSR Programs
1. PT.Aman Toebilah Putra Not programmatic
2. PT.Andalas Bara Sejahtera Not programmatic
3. PT.Batubara Lahat Not programmatic
4. PT.Bumi Merapi Energy Not programmatic
5. PT.Duta Alam Sumatera Environmental Conservation Campaign
6. PT.Golden Great Borneo Not programmatic
7. PT.Muara Alam Sejahtera 1. Natural Disaster Relief 2. Green Program
8. PT.Mustika Indah Permai 1. Natural Disaster Relief 2. Green environment 3. Environmental Conservation Campaign
9. PT.Dizamatra Powerindo 1. Environmental campaigns 2. Participation in World Environment Day 3. Disaster Management Fund
Source: Office Department of Mining and Energy oj
Decision-making by the management of the company to implement CSR programs sustain-ably is essentially a rational decision. Because CSR implementation programs will create a golden circle effect that can enjoyed by the company and its stakeholders. Through CSR programs, welfare and socio-economic life of local people and the wider community will be better. This condition in turn will ensure the smooth running of all processes or production activities of the company until the marketing of production results.
If take an attention to the above table of programs, it can be concluded that some coal mining companies (4 companies) existing in Lahat District that already have CSR program, and some (5 companies) do not have a CSR program. In addition, the public largely not understanding the CSR program, because there is no socialization of CSR programs both from the government and from the company itself. Thus, it interpreted that people have not been able to benefit from the CSR program maximally.
II. Literature review
Bases on the results of some studies above concluded that the CSR implementation program are giving very beneficial for the welfare of society even though its implementation randomly. Therefore, so that the management of coal can run well in accordance with the prevailing laws and regulations, the Government must act firmly against the entrepreneurs, should not exploited by persons who are not responsible Answer. Thus, the Government as a trustee in granting permits to the mining Power Holders (KP) that conducts coal mining in Lahat District must pay attention to social and environmental responsibilities known as CSR Especially in the environment. Because the impact of the company's coal mining in this area is enough to worry mainly because of transportation using truck vehicles, so that almost along the way that the coal trucks are damaged condition. Together with the flying dust and the sound of the engine that are whises the ears. This is the necessary implementation
of CSR program policies by minimal companies to minimize the impact of environmental damage and reduce pressure and friction with the surrounding community.
1. Policy Implementation
The implementation of the policy is an evaluation analysis, with the consequences of more reviews that returning from a prospective that has a purpose. Such as: (a) providing information to (the) policymakers on how to Their programs are underway or executed and (b) demonstrate factors that can become advocates and barriers in the process of implementing CSR program policies, to then provide alternative new policies or find ways Other implementations.
In implementation analysis, there are two approaches, namely, first, the compliance approach. This approach assumes that the policy implementation will succeed if the perpetration adheres to the instructions provided by the upper bureaucracy that establishes the policy. Second, what perspective is going on? This approach sees the implementation of a policy of all things, assuming policy implementation involves and link by all sorts of variables and factors. Thus, what is involved and takes place in the implementation is far more important captured and examined than to be in the implementation of the appropriate necessity. (Nugroho [8]) suggested that: "policy implementation in principle is a way that a policy can achieve its objectives. They are no more and no less. In order to implement public policy, there are two options to implement, directly implementing in the form ofpro-grams or through the formulation of derivate policies or derivatives of these public policies".
Implementation is one of the dimensions in the public policy process that strongly determined whether a policy is in contact with the interests and accepted by the public. According to (Van Meter & Van Horn [16]) in (Landiyanto [6]) defined "the policy implementation as an act which is performed either by individuals or officials or government or private groups directed at the Achieving the objectives outlined in the policy decision".
In an implementation, it is necessary for a clear device to run the implementation function effectively so that the expected objectives are able to materialize according to what has expected. According to the (Wahab [17]) in his book explained that: "The function ofpolicy implementation was to create a relationship that greatly allows the objectives or objectives of the State policy to be implemented and manifested as outcomes (End result) of the final activities desired by the Government. Therefore, implementation functions include the formulation of what is in the science of the State policy is called policies delivery system (System delivery/forwarding State policy) Usually consists of specific means or objectives designed/ Designed specifically and directed toward the achievement of the objectives and intended objectives".
2. Policy Implementation Elements
There are many theories about implementing policies describing a number of factors that can affect the success of implementing a public policy. (Thornton III & Thornton [15]) in the book, Implenting Public Policy reveals policy communication has several kinds of dimensions, among others: dimension of transformation or delivery of public policy information, clarity, and consistency. The better coordination of communication among the parties involved in an implementation process, the mistakes will be very small to occur and vice versa. Implementation is an activity that has three essential and absolute elements in running it. The elements of the implementation of the policy include (Wahab [17]): 1) The existence of programs implemented; 2) the presence of target groups, which is the target community and hopefully will benefit from the program; 3) the implementation of, Either an organization or individual responsible for the management, implementation or supervision of such application process. Based on the above understanding, the implementation of the element is the program, target and implementation in realizing the desired objectives. Therefore, that in the implementation is a little possible error, if there is a mistake then realized quickly.
(Van Meter & Van Horn [16]) had some elements that may affect an organization in implementing the policy. They are consists of: 1) The competition and the size of the staff of the body; 2) the level of hierarchical supervision of sub-unit decisions and processes in implementing agencies; 3) Political resources of an organization (e.g. support among members of legislative and executives); 4) Vitality of an organization; 5) The "open" communication level, which is defined as the free horizontal and vertical communication network and the level of freedom that is relatively high in communication with individuals outside the organization; 6) Formal and informal linked of a body with a "decision-maker" or "decision-making" body. The opinions expressed by (Van Meter & Van Horn [16]) were very important, because the performance ofimplementation is strongly influenced by the nature
or characteristics of the executive. If the implementation has good properties or characteristics, then it will be able to run the policy well as what the policymaker wants in assessing the success performance of the policy implementation. (Lawler III & Worley [7]) attempted to answer these two questions by reviewing four factors or variables from the policy ofbureaucratic structure, resources, communication, and disposition.
According to (Keraf dan imam [6]), in connection with the CSR, as far as it is considered a value and mission to be realized, the social audit intends to assess and measure the performance of the company in relation to various social issues that the company wants to overcome. Based on the explanation above, it seen that CSR is a set of policies and programs integrated into the company's business activities that implemented through the following process:
Figure . CSR Implementation Process Source: CSR Implementation Process (Keraf & Dua [5])
According to (Keraf & Dua [5]) explained that ceed if it is not based on honesty. First, be honest in
the principles of business ethics are as follows: fulfilling the terms of agreements and contracts. Sec-
1. An Autonomy Principle; that is the attitude ondly, honesty in the supply of goods or services is and ability of people to make decisions and act on with quality and comparable price. Third, honest in their consciousness ofwhat they think is good to do. the internal is working relationship within a company.
2. Principles of Honesty; There are three scope of 3. Principles ofJustice; Demanded that everyone business activities that can be clearly demonstrated be treated equally in accordance with the fair rules that the business will not be able to last long and suc- and appropriate objective rational, and accountable.
4. Mutual Benefit Principle; demanded that the business be executed in such a way that it benefits all parties.
5. Principles of Moral Integrity; primarily internalized as internal demands within businesses or corporations, in order to run the business while maintaining the name of either its principal or its people or the company.
III. Research method
Based on the research problems described earlier, the approach used in this research is a qualitative descriptive approach for reviewing supporting factors and inhibiting in implementing CSR program policies. Coal mining company in Lahat District conducted the location of this research. Research site determination based on the conditions of the problem faced, especially about the implementation of CSR program policies. The study used time for 2 years.
This research related to the implementation of CSR program policy by coal mining company in La-hat District. Implementation of CSR program policy researched based on (Van Meter & Van Horn [16]).
The data used in this study are as follows: primary Data through informants who know deeply the problems studied in this study, including public policy experts, executive apparatus/implementing personnel, communities that every day applies for building permits, as well as other informant that will be found in the field and have knowledge with the issues studied. The primary data referred to in this study is a literature that contains data relating to the issues studied in this study, including data on the implementation of CSR program policies, various obstacles faced in implementing The CSR program policies and other relevant secondary data.
The data collection procedure used in this research includes several steps: Observation, interview, and documentation. Data analysis techniques through data obtained in the field analyzed in a descriptive. Descriptive analysis intended to illustrate the various conditions of supporting invoices and barriers in the implementation of CSR programs. In
analyzing the data as (Ridder, Miles, Michael Hu-berman, & Saldana [10]) which stated that in the analysis of qualitative data there are three threads of activity occurring together.
IV. Result and discussion
The focus of this research is how the implementation of CSR program policy and supporting invoices and the inhibitors faced in the implementation of CSR program policy in Lahat District. It is as well as the posting of this Conversation is expected to occur Improving the implementation of CSR programs from year to year, therefore to achieve success in implementing regional policies need to improve all the shortcomings and constraints faced in implementing the policy. It is such as by improving facilities and infrastructure, how CSR management, implementing capabilities, human resources, bureaucratic structures and good communication in achieving the realization of CSR programs annually.
1. Policy implementation of CSR program
Lahat District government has shown seriousness and commitment in handling CSR activities, proved by the issuance of regent Regulation No. 30 year 2015 on CSR and PKBL, and decree of Regent No. 194. In 2015 on the establishment of CSR Forum execute in Lahat District. Implementation of CSR program policy in Lahat District government, get full support from the coal mining company, this is evident from the results of interviews to three leaders of the company stating that their company has done CSR activities that guided by applicable laws and regulations.
2. Supporting factor of CSR Policy Implementation
The implementation of CSR program policy in Lahat District received support from several parties of academics, practitioners and entrepreneurs and society, but there is also a inhibitory factor. The implementation of the policy (Van Meter & Van Horn [16]), formulated the existence of 6 (six phenomena) that affect the outcome of the policy implementation namely: 1) Size and purpose of policy;
2) Resources; 3) Characteristics of implementing agen; 4) Attitudes/tendencies of the executor; 5) Communication is between organization and implementing activities and; 6). Economic, social and political environment. Aside from the above 6 (six) factors that have a major influence on CSR programs are entrepreneurs ' awareness factors, deregulation factors, organizational factors, entrepreneurs advantage factors, skills and facilities and infrastructure factors.
3. Measurement and aim of policy
(Tampubolong [13]) said the performance of
policy implementation can be measured the success rate of the size and objectives of the realistic policy with Sosio-kultur at the policy executor level. When the size and target policy is too ideal (utopis), it will be difficult to realized.
In implementing CSR program policies, the size and objectives that want achieved is quite clearly contained in the rule of Regent Number 30 year 2015, which is a clear boundary of the CSR program. The implementation of CSR programs are in accordance with Legislation, realization of legal certainty and protection, protecting the company from wild levies, programmatic regional government plans, as well as guidance for the organizers of CSR programs by companies operating in Lahat District. The implementation of CSR program is a company that is legal status and not differentiated between private and state-owned companies and/or the property of the District government that produces goods and services with the target area of CSR programs prioritized for the areas directly impacted by the company's operations.
4. Implementer agent characteristic
The behavioral tendencies or characteristics of policy executor play an important role in realizing the policy implementation in accordance with objectives. Important characters that owned by policy executor e.g. honesty and high commitment. Honesty directs the implementation to remain in the outlined program, while the high commitment of policy executor will make them always enthusiastic in carrying
out the duties, authorities, functions, and responsibilities in accordance with predefined regulations. Hearken to the interviews to three leaders of coal mining companies who acknowledge the commitment, caring and honesty of the political leadership in this case the local government of Lahat Regency and Regional Representative Council (DPRD) that became its own motivation for the company to contribute to supporting the implementation of CSR program policy in Lahat District.
5. Economy, social, and politycal environments
Environmental conditions where policy implemented greatly affect the success ofpolicy implementation. Although the impact of this factor does no too big but it may have a profound effect on achieving the policy governing body. The social, economic, and political environment that is not conducive can be a failure effect of the policy implementation performance. Therefore, efforts to implement the policy should also pay attention to external conducive environmental conditions. Listen to the interview results concluded that the implementation of the CSR program policy in Lahat District has indicated strong support from the social, economic, and political environment.
6. Communication among Agents
Good relations between organizations and intergovernmental also facilitate policy implementation. Advice, suggestion, or technical assistance provided assists in interpreting regulations and government guidelines that are useful in implementing policies and sanctions both positive and negative given if there is a something that felt is not appropriate in the original purpose. Policy communication means the process of conveying policy information from policy maker (policy maker) to implementing policy (implementer) (Widodo [18]) In the hope of communication, all can walk according to the plan so that the desired objectives achieved.
7. Resources
The limitations of time, money, and other resources must always be aware of their existence and
influence (Jefkins & Jefkins [2]). Resources have an important role in policy implementation. The resources here relate to all sources that used to support the success of policy implementation. These resources include human resources, budgets, facilities, information and sufficient authority available for the implementation of the CSR program policy of the coal mining company in Lahat District.
8. Vission and mission of the company
The implementation process seen from the company's objectives is to seek maximum profit with the vision of establishing good relations with the Community and government, making the company a national scale and beneficial to the people many. The company's mission indicates that the company has a concern for its responsibilities, social, economic and environmental. The company's step in realizing its mission through human resources development, helps with the community, and improve Stakeholders 'role. The coal mining company in Lahat District has been concerned about the needs and interests of the community, especially the communities around the mine site. The company's relationship with the community is well-established symbiotic mutualism.
9. Company Strategy
Strategy includes the development of vision and mission, identification of the opportunities and external threats of an organization, awareness of internal strengths and weaknesses, long-term goal setting, strategy alternative Search, and selection of certain strategies to reach the goal. In observing the strategy then taken by the coal mining companies seen from the results of interviews in the previous chapter. Based on the results of the interview can be concluded where the coal mining company in Lahat district has a proactive strategy. The company considers that social responsibility is part of the responsibility to satisfy stakeholders. If the stakeholders are satisfied, the positive image of the company awakened. Implementation of corporate social responsibility or corporate social responsibility program can make a positive impact on the company.
10. Company organization structure
The organizational structure of the coal mining company arrange by a President Director. Furthermore, President Director assisted by four directors, namely Finance Director, Commercial Director, Technical Director, and Human Resources director. Meanwhile, a General Manager leads each branch or operating unit. Management of CSR program is under Public relations management under the control of Human Resources Director. As a form of alignments towards social and environmental problems and the inevity of the negative impact of the company's existence, the social responsibility implement in a well-planned environment. Therefore, in order to maintain the implementation of social responsibility carried out seriously and well planned, it is necessary to be formed a department that is especially responsible for the implementation of social responsibility.
V. Conclusion and suggestion
From the results of the research and discussion have explained earlier they are consist of a conclusion that the local government of Lahat district. in the implementation of CSR program policy can be analyzed by the conclusion of implementation of CSR program policy already in Implemented in the local government of Lahat district. It continued and the implementation shows a tendency to better attitude, although found barriers in coordination between the implementing agents and the delegation of Management Authority CSR program from the government to the CSR Forum.
Based on the results of the above studies, it suggested that in implementing CSR program policy integrated in one container, namely the CSR Forum to make improvements to the various parties as follows:
1) Regional government of Lahat District
a. Communicating the CSR program policy to all executors to make a new breakthrough in overcoming the weakness of policy communication from the Government, thus enabling implementation of
the policy will be better. Socialisai policy of Regent Regulation No. 30 in 2015 about CSR and the decree of Regent Number 194 a year 2015 about Forum CSR should further improved.
b. Resources adjusted to the need for the implementation of CSR program policy that is adequate human resources and competency in the field of CSR. The physical facilities, especially information technology, integrated with all stakeholders, so it is easily accessible to the importance of policy implementation.
c. The commitment oflocal leadership to support the implementation of policies, supporting positive attitudes both from internal and external parties in implementing CSR program policies.
d. Implementation of CSR program policies to continue followed and evaluated periodically, so that the implementation of CSR program policy will be better in the future.
e. Implementing agency CSR Forum is an employee who given the task of implementing the CSR Forum, does not have a double position in the government.
2) CSR Forum in Lahat District
a. In conducting communication policy, execute by the local government as a motivator, counselor, facilitator and mediator between the government and the company.
b. In reviewing CSR policy in Lahat District in the planning efforts aims to develop a participatory, accountable and transparent CSR, program.
c. CSR Forum in order to have its own office and/or secretariat, they also can run a forum task in CSR planning.
3) Coal Mining Company
a. Conducting policy communications to the local government implement by providing adequate facilities and assigning competent employees to perform good policy communications.
b. Evaluate the implementation of CSR policy program to be better, clear, understandable, and measurable in arranging, organizing and designing activities in the CSR program.
c. Socialize policies to all employees for the support and uniformity of thinking patterns and actions in CSR activities.
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