4 Principles of the BUMN TJSL Program that We Need to Understand

We all know that BUMN social and environmental responsibility program has an important role for the surrounding community and the environment. BUMN TJSL Program is carried out in a systematic and integrated manner to ensure the implementation and success of the BUMN TJSL Program in accordance with the priorities and/or achievement of the objectives of the BUMN CSR Program guided by the work plan.

The 4 principles are:

1. Integrated, based on risk analysis and business processes that are related to stakeholders. According to the views of several CSR experts, the company realizes that CSR is not only about maintaining the company’s reputation, but also about creating economic sustainability by involving the community or stakeholders in their business activities. The concept of CSR began to be modified with a more profitable concept, both for the company and the community. The development of the CSR concept, namely Creating Shared Value (CSV). CSV is a business strategy that emphasizes the importance of problems (social issues) in the design of corporate strategies that are in accordance with the business processes.
   .
2. Directional, has a clear direction to achieve company goals. This means that the CSR program must be in accordance with the main pillars of the company in improving the company’s brand image in the community. In addition, the existence of the CSR program is able to provide business efficiency and increase profits.
   .
3. Measurable, The impact is measurable. Having a contribution and providing benefits that result in changes or added value for stakeholders and the company. The CSR program must have a measurable impact, either directly or indirectly (through a process). This will have a measurable and valuable impact that can be used as planning material for the future. The work tool used in the measurement is the social return on investment ( SROI ). SROI is a framework that measures and quantifies changes in a broader concept of value. It reduces inequality, reduces environmental degradation, and increases welfare by combining funds and benefits from social, environmental, and economic aspects.
   .
4. Accountability, CSR program can be accounted for so as to keep away from the potential for abuse and deviation. Policymakers are fully responsible to the public and stakeholders related to the CSR program being implemented. The company does not only carry out CSR/CSR programs in the form of activities but these activities must be reported in writing and disseminated. This is able to keep away from abuse and deviations from the program being implemented. The report must be reported by the company in the annual report along with details of the costs incurred. Sustainability reporting can help companies measure, understand, and communicate their economic, environmental, social, and governance performance, and then set goals and manage change more effectively. Companies must also pay attention to standards in CSR reporting. Companies can refer to the Global Reporting Initiative (GRI) to produce a CSR sustainability report in communicating sustainability performance and impacts – both positive and negative.

Source: Peraturan Menteri BUMN No. 5 tahun 2021