According to the World Business Council for Sustainable Development, CSR is not just discretionary, but a commitment for companies as an improvement in the quality of life. Philosophically, if the company tries to be useful to mankind, in the long term it will certainly exist.
In providing benefits, companies need to have priorities and strategies. One of the important priorities is the existence of the company itself to become a sustainable business institution (the ability to generate long-term profits). This of course will be a strategic goal. The ability to generate long-term profits will only be realized if the company’s presence can be useful and supported by stakeholders.
The sustainable CSR program is part of the company’s sustainable development efforts. This is useful to help companies improve financial performance and improve corporate image. CSR can also be interpreted as an investment, which means that in making an investment, the company will assess the return obtained.
Thus, CSR can be interpreted as corporate responsibility to stakeholders and shareholders.
The definition of CSR based on ISO 26000, states that CSR is the responsibility of an organization or the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that contributes to sustainable development, health and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable law and consistent with international norms of behaviour, and is integrated throughout the organization and practiced in its relationships \.
Sumber: Rachman dkk