Corporate Social Responsibility
Social responsibility has become an important activity for any company in running their business. In general, social responsibility of business is to build strength, which requires a healthy balance of economic, market, and community. Based on a survey conducted by Ernst & Young, 94% of companies believe that social responsibility activities can have a positive impact for the Company in business. However, in reality only 11% of companies that experience a significant change after undergoing social activities with strategic responsibilities. Other findings from a research, social responsibility programs run by public companies can increase the probability of 70% for the purchase or consume the products and services sold by the Company. The results of this feasibility study shows that social responsibility is a way of maintaining good relations with the public, meaning the Company does not continue to pursue the large economies of scale in maintaining the resilience of the business, yet it must be concerned about especially the environmental alance.
By looking at the CompanyÕs exposure to the study also believe that social responsibility is an important activity to improve the smooth flow of business. As a guide in formulating the CompanyÕs social responsibility program, the company adopted the concept of pyramid carrol.
Exposure studies from Carroll Pyramid states that every company has four pyramid responsibility in business. The most basic layer or foundation, it is definitely the responsibility of maintaining the stability of the company at the beginning of their business through increased cash inflows. The second layer, companies must undergo an effort to comply with the regulations or applicable government regulations. The third layer, the Company responsible for running the business while maintaining ethics, ethics in this study refers to the moral values, justice, and human rights (human rights). Topmost layer is the responsibility of the participating companies to improve the welfare of society, such as donations, will support cultural, educational, health, and so on.
With reference to “Carrol”, the Company realized that the attention or care about the welfare of the community should be considered. However the community is part of the contributing factor in the economic development of Indonesia