Government and Companies Must Synergize and Collaborate on CSR |

in Steem SEA11 months ago



Shocking news came from the West Coast. The Regent of West Aceh issued a letter to PT Mifa Bersaudara. The local inspectorate will conduct an audit of the company's social responsibility (CSR) funds. This letter immediately caused reactions from various parties.

This is not a matter of supporting or not supporting the letter. The issue of CSR already has a number of regulations in Indonesia. CSR is regulated, among others, in Government Regulation Number 47/2012 concerning Social and Environmental Responsibility of Limited Liability Companies which emphasizes that CSR is a legal obligation for certain companies.

CSR is also regulated in the Limited Liability Company Law Number 40/2007 which, among others, regulates that CSR implementation costs must be included in the company's budget. Similar matters are also regulated in Law Number 25/2007 concerning Investment, and a number of other regulations. The point is. CSR is an obligation, not just a company's willingness.

Every district and city government in Aceh should study several regulations first so that they are not considered to be interfering too much in company affairs which would make investors uncomfortable as feared by a number of observers.

In a social mapping study of oil and gas companies in Aceh conducted by a campus, it was illustrated how the local government views the existence of CSR. The large amount of CSR often tempts the local government to take part in management. Meanwhile, the company is worried about leakage when it is handed over to the government.




In addition, the government should be self-aware by not taking advantage of the sweat of the company. When managed by the government - it is no longer a secret - the political nuances are stronger than the distribution of justice and community empowerment.

Companies must be given freedom in distributing CSR according to the company's vision and mission. However, to avoid overlapping, coordination with the local government must still be carried out. Target groups who have received a flood of programs from the company should no longer enjoy similar assistance from the local government.

Government funds are very limited, especially in the midst of an era of reckless efficiency like today. We also hear similar reasons from companies that do have limited allocations for CSR. Some public companies, CSR fund allocation requires longer validation before being approved. This condition must be understood by the government and the community.

On the other hand, companies should not hide behind internal regulations. Ideally, companies and local governments must synergize and collaborate in CSR management that supports each other with fund allocation from local government spending. Synergizing and collaborating means respecting each other's positions and roles, not peeking or pressuring other parties to gain profits.

Synergy and collaboration are not only in the form of commitments, but must be implemented in a memorandum of understanding between the company and the local government. When it runs smoothly, in the end, the community will feel the benefits and provide multiple benefits for the company and local government.[]



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