The Role of Environmental CSR to Greening Your Company

The Role of Environmental CSR to Greening Your Company

6 Jan 2022

CSR stands for Corporate Social Responsibility which means Corporate Social Responsibility to stakeholders which consist of 3P (People, Planet, Profit). Usually, companies have CSR spread across various fields with diverse work programs. Which aims to reduce the adverse social, health, and environmental impacts that occur in the world. One area of ​​CSR is the environment. The role of environmental CSR is very large, not only as a medium for greening the company’s image. 

CSR is not only limited to the concept of providing social assistance to disaster-affected communities and underprivileged communities but includes how a company culture treats its employees to maintain good company relationships with suppliers. 

Usually, CSR is a company’s representation of:

  • People, community welfare
  • Planet, environmental sustainability in which the company is located
  • Profit, the long term profit

CSR has been regulated in Law no. 40 of 2007 concerning Limited Liability Companies. The obligation to provide CSR is limited to companies or companies whose business activities are related to natural resources (SDA).

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One of the CSR programs related to the Environment has been described in Law no. 32 of 2009 concerning Environmental Protection and Management which confirms that every service/business has the following obligations:

  • Provide accurate and real-time information regarding the protection and management of the Environment
  • Maintaining the sustainability of environmental functions around the company
  • Comply with all environmental regulations around the company

For a company, the Environmental CSR Program is considered important to minimize the negative impacts of production, and can be explained as:

  • Air pollution

Some of the Company’s production processes cause air pollution which can have a negative impact on society. Like the smoke from the company production process, the surrounding community can live continuously and cause respiratory problems. A company should have a mission to create a product with a production process that reduces the release of carbon dioxide into the air so that the company’s existence will be more environmentally friendly and friendly to the surrounding community.

  • Soil pollution

The land around the factory/company is generally polluted by toxic waste from materials that have been mixed in the production process and result in soil fertility that cannot support agricultural activities. The Company should have a strategy to reduce pollution. Such as preparing a special place for the disposal of production waste or creating production residues that can be recycled.

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  • Water Pollution

Many companies dispose of their waste products in nearby waters, such as rivers, lakes, or the sea. This can make the waters toxic and can kill organisms and aquatic habitats such as fish and coral reefs. There are two ways to minimize water pollution by the company’s production waste. First, non-technical countermeasures, namely by creating laws to limit and regulate the form of industrial activities around the waters. Second, technical countermeasures such as installing filters around factory disposal sites.

The role of Environmental CSR certainly provides great benefits for a company. The company will get a good image in the public eyes and consumers because it is considered to have been able to process existing natural resources very well. For investors, companies that care about the environment are considered to have low risk and benefit investors who are considering long-term investments in the company.

Companies that have Environmental CSR in them can minimize environmental and social conflicts around the Company. In addition, Environmental CSR can also increase cooperation with stakeholders and can differentiate between one company and another because each Environmental CSR has a different work program. (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.

Translated by Vina


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