Corporate Social Responsibility (CSR) or commonly referred to as 'Corporate Social Responsibility' is a concept that a company has various forms of responsibility to all its stakeholders, consumers, employees, shareholders, communities, and the environment in all aspects of the company's operations. CSR is also a long-term company business strategy that focuses on restoration and improving community welfare in the social, health, and environmental fields.

CSR is one part of the business strategy and is closely related to 'Sustainable Development', when a company carries out its activities not only based on considerations of economic aspects, but also considers the social and environmental impacts, both in the near term and in the future. (long term).

The Purpose of Establishing CSR in the Company

CSR is a company's commitment to act ethically, operate legally, and contribute to improving economic aspects in line with improving the quality of life of employees, society, and the wider environmental aspect (Sankat, Clement K, 2002). Schermerhorn (2003), defines CSR as a company's obligation to act in a manner that has been agreed upon in the company and the interests of the wider community. The establishment of CSR is primarily to build a better quality of life together with related parties such as the community and the social environment in which the Company is located (Budimanta, 2002).

Also Read: The Role of Environmental CSR to Greening Your Company

Generally, a company forms CSR with various objectives, including:

• The form of the company's contribution to the welfare of the community around the company, and environmental sustainability around the company
• As a company's identity and a differentiator between the work programs of one company to another
• Strengthening the brand produced by the company in the hearts of the people
• Reducing business risk run by a company, because, with CSR, the company's relationship with partners outside the company will be better, and reduce business risk
• Management of natural resources is done wisely so that not only exploitation, the company can also preserve limited natural resources
• The company's opportunity to widen access to the market because of the role of CSR that can build consumer loyalty and penetrate new market shares
• Reducing production costs, for example, a company applies a recycling system to its CSR program
• Opportunity to get awards for social contributions carried out by CSR in certain areas
• Improve the company's relationship with regulators, stakeholders, and the community
• A positive company image that forms long-term profits

Hoped that with the presence of CSR, the public can be more critical and sensitive to a product that they are going to buy. Companies not only exploit limited natural resources but also use them wisely. After that, a better social environment emerged with shared responsibility and social responsibility also the creation of a positive image of a Company. (Intan Widianti Kartika Putri/Ecolify)

Ecolify is an environmental conservation platform that will connect companies, communities, organizations, brands to individuals, to work together to make Indonesia green with the principles of sustainability and transparency. We will always open up opportunities for collaboration and help improve your Corporate Responsibility initiatives. Let's together make Indonesia green because Earth deserves the best recovery from the collaborative initiative of its people. https://ecolify.org

Translated by Vina