Social responsibility activities have become an important activity for every company in running a business. In general, social responsibility activities are a way to build business strength, which requires a balance of economic, market and community health.
Based on a survey conducted by Ernst and Young, 94% of companies believe that social responsibility activities can have a positive impact on the company’s business. However, the reality is that only 11% of companies experience significant changes after undergoing strategic social responsibility activities. Another finding in the study states that social responsibility programs run by companies can increase the probability of the community by 70% to buy or consume products and services sold by the company.
The results of this feasibility study show that social responsibility is a way to maintain the company’s good relations with the public, meaning that companies do not continue to pursue large economies of scale in maintaining business resilience, but must care about the balance of the surrounding environment, especially the community. By looking at the exposure of the study, the Company also believes that social responsibility activities are important activities to improve business smoothness. As the Company’s guide in developing social responsibility programs, the Company adopts the concept of the carrol pyramid.
The presentation of the Carrol Pyramid study states that every company has four pyramids of responsibility in conducting business. The most basic layer or foundation, is definitely the company’s responsibility at the beginning to maintain the stability of its business through increased cash inflows. The second layer, the company must run a business by complying with applicable government rules or regulations. The third layer, the company is responsible for maintaining ethics when running a business, ethics in this study refers to moral values, justice, and humanrights. The top layer is the company’s responsibility to participate in improving the welfare of society, such as donations, support for culture, education, health, and so on.
By referring to Carrol’s understanding, the Company realizes that it should pay attention or care about the welfare of the community. After all, the community is part of the contributing factors to the improvement of the economy in Indonesia.