GOOD CORPORATE

GOVERNANCE
MASTER OF BUSSINES ADMINISTRATION
FACULTY OF SOCIAL AND POLITICAL SCIENCES
DIPONEGORO UNIVERSITY

SUDHARTO P. HADI
sudhartophadi@lecturer.undip.ac.id
sudhartophadi@yahoo.coid
 Your picture
SUDHARTO P. HADI
PROFESSOR IN ENVIRONMENTAL MANAGEMENT, DIPONEGORO
UNIVERSITY
Email:
Education.
FISIP UNDIP (1979) sudhartophadi@lecturer.undip.ac.id
MASTER IN ENVIRONMENAL STUDIES, YORK UNIVERSITY,
TORONTO, CANADA (1989)
PhD, UNIV. OF BRITISH COLUMBIA, VANCOUVER,CANADA (1993)

Research focuses
WORKING EXPERIENCE • Environmental Management
• Lecturer, Diponegoro University (1980- • Business Sustainability
• Deputy Ministry of Environment, R.I (2000-2002) • Social Impact Assessment
• Rector, Diponegoro University (2010-2015)
 REFERENCES
• Adebayo. M. et al. Good Corporate Governance and Organisational Performance. An Empirical
Analysis. International Journal of Humanities and Social Science. Vol 4. No 7 (1) May, 2014
• Emirson, Joni. Prinsip-Prinsip Good Corporate Governance. Yogyakarta, Indonesia: Genta Press. 2007.
• Michelberger, Knut. Corporate Governance Effects on Firm Performance. A Literature Review. Regional
Formation and Development Studies. No 3 (20)
• Nur’any, Renny et al. Implementation of GCG and Its Impact on Corporate Performance. The Mediation
Role of Firm Size (Empirical Study from Indonesia). Global Business and Management Research. 2013.
Vol 5, Issue 2/3
• Siswanto Sutojo dan E John Aldridge. Good Corporate Governance. Jakarta: Damar Mulia Pustaka.
2005.
 INTRODUCTION QUESTIONS
• WHY IS GCG (GOOD CORPORATE GOVERNANCE) IS REQUIRED
BY EACH COMPANY?
• WHAT TYPE OF COMPANY DOES REQUIRES GCG?
• WHAT ARE THE IMPLICATIONS IF THE COMPANY DID NOT
ADOPT GCG
 UNDERSTANDING AND PRINCPLES
• "CORPORATE GOVERNANCE IS THE SYSTEM BY WHICH BUSINESSES ARE DIRECTED AND
CONTROLLED." GOOD CORPORATE GOVERNANCE IS A KEY FACTOR IN UNDERPINNING THE
INTEGRITY AND EFFICIENCY OF A COMPANY. POOR CORPORATE GOVERNANCE CAN WEAKEN A
COMPANY’S POTENTIAL, CAN LEAD TO FINANCIAL DIFFICULTIES AND IN SOME CASES CAN CAUSE
LONG-TERM DAMAGE TO A COMPANY’S REPUTATION (The Cadbury Report  UK, 1991). 

• THE CORE PRINCIPLES OF GOOD CORPORATE GOVERNANCE; FAIRNESS, ACCOUNTABILITY,

RESPONSIBILITY AND TRANSPARENCY,

• BENEFITS: OUT PERFORM OTHER COMPANIES, ATTRACT INVESTORS, FURTHER GROWTH.

 FAIRNESS
• EQUAL TREATMENT, FOR EXAMPLE, ALL SHAREHOLDERS SHOULD RECEIVE EQUAL
CONSIDERATION FOR WHATEVER SHAREHOLDINGS THEY HOLD.
•  SHAREHOLDER AGREEMENT

• FAIRNESS IN THE TREATMENT OF ALL STAKEHOLDERS: EMPLOYEES, COMMUNITIES

AND PUBLIC OFFICIALS.
• THE FAIRER TO STAKEHOLDERS, CAN SURVIVE THE PRESSURE OF INTERESTED
PARTIES.
 ACCOUNTABIITY
• OBLIGATION AND RESPONSIBILITY TO GIVE AN EXPLANATION OR REASON FOR THE COMPANY’S ACTIONS
AND CONDUCT.
• THE BOARD SHOULD PRESENT A BALANCED AND UNDERSTANDABLE ASSESSMENT OF THE COMPANY’S
POSITION AND PROSPECTS;
• THE BOARD IS RESPONSIBLE FOR DETERMINING THE NATURE AND EXTENT OF THE SIGNIFICANT RISKS IT IS
WILLING TO TAKE;
• THE BOARD SHOULD MAINTAIN SOUND RISK MANAGEMENT AND INTERNAL CONTROL SYSTEMS;
• THE BOARD SHOULD ESTABLISH FORMAL AND TRANSPARENT ARRANGEMENTS FOR CORPORATE
REPORTING AND RISK MANAGEMENT AND FOR MAINTAINING AN APPROPRIATE RELATIONSHIP WITH THE
COMPANY’S AUDITOR, AND
• THE BOARD SHOULD COMMUNICATE WITH STAKEHOLDERS AT REGULAR INTERVALS, A FAIR, BALANCED
AND UNDERSTANDABLE ASSESSMENT OF HOW THE COMPANY IS ACHIEVING ITS BUSINESS PURPOSE.
 RESPONSIBILITY

• THE BOARD OF DIRECTORS ARE GIVEN AUTHORITY TO ACT ON BEHALF OF THE

COMPANY. THEY SHOULD THEREFORE ACCEPT FULL RESPONSIBILITY FOR THE
POWERS THAT IT IS GIVEN AND THE AUTHORITY THAT IT EXERCISES. THE BOARD OF
DIRECTORS ARE RESPONSIBLE FOR OVERSEEING THE MANAGEMENT OF THE
BUSINESS, AFFAIRS OF THE COMPANY, APPOINTING THE CHIEF EXECUTIVE AND
MONITORING THE PERFORMANCE OF THE COMPANY. IN DOING SO, IT IS REQUIRED TO
ACT IN THE BEST INTERESTS OF THE COMPANY.
• ACCOUNTABILITY GOES HAND IN HAND WITH RESPONSIBILITY. THE BOARD OF
DIRECTORS SHOULD BE MADE ACCOUNTABLE TO THE SHAREHOLDERS FOR THE WAY
IN WHICH THE COMPANY HAS CARRIED OUT ITS RESPONSIBILITIES.
 TRANSPARENCY

• STAKEHOLDERS SHOULD BE INFORMED ABOUT THE COMPANY’S ACTIVITIES, WHAT IT PLANS TO DO IN

THE FUTURE AND ANY RISKS INVOLVED IN ITS BUSINESS STRATEGIES.
• OPENNESS, A WILLINGNESS WITH CLEAR INFORMATION TO SHAREHOLDERS AND OTHER
STAKEHOLDERS. FOR EXAMPLE, TRANSPARENCY REFERS TO THE OPENNESS AND WILLINGNESS TO
DISCLOSE FINANCIAL PERFORMANCE FIGURES WHICH ARE TRUTHFUL AND ACCURATE.
• DISCLOSURE OF MATERIAL MATTERS: TIMELY AND ACCURATE TO ENSURE THAT ALL INVESTORS HAVE
ACCESS TO CLEAR, FACTUAL INFORMATION WHICH ACCURATELY REFLECTS THE FINANCIAL, SOCIAL
AND ENVIRONMENTAL POSITION OF THE ORGANISATION. ORGANISATIONS SHOULD CLARIFY AND MAKE
PUBLICLY KNOWN THE ROLES AND RESPONSIBILITIES OF THE BOARD AND MANAGEMENT TO PROVIDE
SHAREHOLDERS WITH A LEVEL OF ACCOUNTABILITY.
• TRANSPARENCY ENSURES THAT STAKEHOLDERS CAN HAVE CONFIDENCE IN THE DECISION-MAKING AND
MANAGEMENT PROCESSES OF A COMPANY.
 APPROACH TO HRM :

1. MECHANICAL APPROACH
EMPLOYEE AS PRODUCTION FACTOR
REPLACEMENT WORKERS WITH MACHINE
2. PATERNALISM APPROACH
MANAGEMENT TAKE ACTION AS A FATHER PROTECTING
THE EMPLOYEE AND PROVIDING
FACILITIES
RECREATION
HOUSING
3. SOCIAL APPROACH
COMPANY AS SYSTEM CONSITING OF SUB-SUB SYTEM INCLUDING EMPLOYEE
KOMPAS DAILY NEWSPAPER
SEPT 28, 2020
 GREEN BUSINESS, CSR & CORPORATE
SUSTAINABILITY
• GREEN BUSINESS: ADOPT PRINCIPLES, POLICIES AND PRACTICES THAT
IMPROVE THE QUALITY OF LIFE FOR THEIR CUSTOMERS, EMPLOYEES,
COMMUNITIES AND PLANET.
• GREEN BUSINESS: BUSSINES SINERGYZE THE ASPECTS OF
ECONOMIC (PROFIT), SOCIAL AND ENVIRONMENT
• CSR: EFFORT TO INTEGRATE ECONOMIC, ENVIRONMENT AND
SOCIAL ASPECT ON CULTURAL SYSTEM, DECISION MAKING,
STRATEGY AND COMPANY’S OPERATION
 ASSIGNMENT 1
• 1.AS PART OF FAIRNESS AND ACCOUNTABILITY, BODs DO NOT ONLY RESPONSIBLE
TO THE SHAREHOLDERS BUT ALSO TO THE STAKEHOLDERS. WHY AND IN WHAT
WAY THE REPONSIBLE IS GIVEN
• 2.TO MEET WITH THE PRINCIPLE OF FAIRNESS, WHICH APPROACH OF HRM IS
SUITABLE TO BE APPLIED?
• 3. WHAT DO YOU THINK OF APPROACH TAKEN BY CEO LAND O’LAKES BETH FORD
IN DEALING WITH THE DECLINE OF THEIR PRODUCT DUE TO PANDEMIC COVID-19
(SLIDE 8)
• 4. WHAT ARE THE IMPLICATION OF MECHANICAL APPROACH OF HRM
• 5. IS GREEN BUSINESS PART OF GCG? WHY AND IN WHAT WAY?
 ENVIRONMENTAL, SOCIAL, AND
CORPORATE GOVERNANCE (ESG)
• ENVIRONMENTAL, SOCIAL, AND CORPORATE GOVERNANCE IS AN EVALUATION OF A FIRM’S
COLLECTIVE CONSCIENTIOUSNESS FOR SOCIAL AND ENVIRONMENTAL FACTORS. IT IS TYPICALLY
A SCORE THAT IS COMPILED FROM DATA COLLECTED SURROUNDING SPECIFIC METRICS RELATED
TO INTANGIBLE ASSETS WITHIN THE ENTERPRISE.
• ESG INDEX: RATING BY SUSTAINALYTIC, FINANCIAL INSTITUTION, MORNING STAR
• LOW, MODERATE, HIGH AND SEVERE
• ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) CRITERIA ARE A SET OF STANDARDS FOR A
COMPANY’S OPERATIONS THAT SOCIALLY CONSCIOUS INVESTORS USE TO SCREEN POTENTIAL
INVESTMENTS. ENVIRONMENTAL CRITERIA CONSIDER HOW A COMPANY PERFORMS AS A STEWARD OF
NATURE. SOCIAL CRITERIA EXAMINE HOW IT MANAGES RELATIONSHIPS WITH EMPLOYEES, SUPPLIERS,
CUSTOMERS, AND THE COMMUNITIES WHERE IT OPERATES. GOVERNANCE DEALS WITH A COMPANY’S
LEADERSHIP, EXECUTIVE PAY, AUDITS, INTERNAL CONTROLS, AND SHAREHOLDER RIGHTS.
 ENVIRONMENTAL ASPECT

• ENVIRONMENTAL CRITERIA MAY INCLUDE A COMPANY’S ENERGY USE,

WASTE, POLLUTION, NATURAL RESOURCE CONSERVATION, AND TREATMENT
OF ANIMALS. THE CRITERIA CAN ALSO BE USED IN EVALUATING ANY
ENVIRONMENTAL RISKS A COMPANY MIGHT FACE AND HOW THE COMPANY
IS MANAGING THOSE RISKS.
• FOR EXAMPLE, THERE MIGHT BE ISSUES RELATED TO ITS OWNERSHIP OF
CONTAMINATED LAND, ITS DISPOSAL OF HAZARDOUS WASTE, ITS
MANAGEMENT OF TOXIC EMISSIONS, OR ITS COMPLIANCE WITH
GOVERNMENT ENVIRONMENTAL REGULATIONS.
ENVIRONMENTAL ASPECT
MANAGING ENVIRONMENTAL RISKS, INCLUDING CLIMATE-
RELATED RISKS.

ENSURE QUALITY OF RECYCLING AND WASTE MANAGEMENT

INFRASTRUCTURE IN EVERY MARKET.

•MINIMIZING THE ENVIRONMENTAL IMPACTS OF OUR PHYSICAL

OPERATIONS.

•PARTNERING WITH ORGANIZATIONS TO ADVANCE

SUSTAINABLE DEVELOPMENT
 ENVIRONMENTAL ASPECT
• COMPANIES THAT PUT OUT CARBON OR
SUSTAINABILITY REPORTS
• LIMITS HARMFUL POLLUTANTS AND CHEMICALS
• SEEKS TO LOWER GREENHOUSE GAS EMISSIONS
• USES RENEWABLE ENERGY SOURCES
 SOCIAL ASPECT
• SOCIAL CRITERIA LOOK AT THE COMPANY’S BUSINESS
RELATIONSHIPS. DOES IT WORK WITH SUPPLIERS THAT HOLD
THE SAME VALUES AS IT CLAIMS TO HOLD? DOES THE
COMPANY DONATE A PERCENTAGE OF ITS PROFITS TO THE
LOCAL COMMUNITY OR ENCOURAGE EMPLOYEES TO PERFORM
VOLUNTEER WORK THERE? DO THE COMPANY’S WORKING
CONDITIONS SHOW HIGH REGARD FOR ITS EMPLOYEES’
HEALTH AND SAFETY? ARE OTHER STAKEHOLDERS’ INTERESTS
TAKEN INTO ACCOUNT?
 SOCIAL ASPECT
• COMPANIES THAT OPERATE AN ETHICAL SUPPLY CHAIN
• SUPPORTS LGBTQ RIGHTS AND ENCOURAGES
DIVERSITY
• HAS POLICIES TO PROTECT AGAINST SEXUAL
MISCONDUCT
• PAYS FAIR WAGES
 SOCIAL ASPECT

•ACTING IN THE BEST INTEREST OF OUR CUSTOMERS.

•ACTING IN THE BEST INTEREST OF OUR CUSTOMERS.
•EXPANDING ECONOMIC OPPORTUNITY IN THE
COMMUNITIES WHERE WE DO BUSINESS.
•INVESTING IN OUR HUMAN CAPITAL.
•PROMOTING DIVERSITY, EQUITY AND INCLUSION.
•PROMOTING A SAFE & HEALTHY WORK ENVIRONMENT.
 GOVERNANCE
• COMPANIES THAT EMBRACE DIVERSITY ON THEIR
BOARD
• EMBRACES CORPORATE TRANSPARENCY
• EMPLOYS A CEO INDEPENDENT OF THE BOARD
CHAIR
 GOVERNANCE
• ABOUT GOVERNANCE, INVESTORS MAY WANT TO KNOW THAT A COMPANY
USES ACCURATE AND TRANSPARENT ACCOUNTING METHODS AND THAT
STOCKHOLDERS ARE ALLOWED TO VOTE ON IMPORTANT ISSUES.
• THEY MAY ALSO WANT ASSURANCES THAT COMPANIES AVOID 
CONFLICTS OF INTEREST IN THEIR CHOICE OF BOARD MEMBERS, DON'T USE
POLITICAL CONTRIBUTIONS TO OBTAIN UNDULY FAVORABLE TREATMENT
AND, OF COURSE, DON'T ENGAGE IN ILLEGAL PRACTICES.
• NO SINGLE COMPANY MAY PASS EVERY TEST IN EVERY CATEGORY, OF
COURSE, SO INVESTORS NEED TO DECIDE WHAT'S MOST IMPORTANT TO
THEM AND DO THE RESEARCH.
 GOVERNANCE
•CULTIVATING A STRONG RISK AND CONTROL
ENVIRONMENT.
•FOSTERING A CULTURE OF TRANSPARENCY AND ETHICAL
BEHAVIOR.

•MAINTAINING EFFECTIVE BOARD LEADERSHIP AND

 
MANAGEMENT PROCESSES.

•SAFEGUARDING PRIVACY AND CYBERSECURITY.

 SUMMARY OF ESG
ENVIRONMENT:
• STEWARD OF NATURE
• ENERGY USE
• LIMIT HARMFULL POLLUTION, WASTE
• NATURAL RESOURCE CONSERVATION
• TREATMENT OF ANIMAL
• CLIMATE RELATED RISK
• WASTE MANAGEMENT
• ENVIROMENTAL IMPACTS OF PHYSICAL OPERATION
• CARBON
• SUSTAINABILITY REPORT
• LOWER GREEN HOUSE
• PARTNERING WITH STAKEHOLDER TO ADVANCE SUSTAINABLE DEVELOPMENT
 SUMMARY OF ESG
SOCIAL:
• EMPLOYEES, SUPPLIERS, CUSTOMERS, COMMUNITIES
• ALLOCATE PART OF PROFIT TO LOCAL COMMUNITY
• EMPLOYEE TO PERFOM VOLUNTARY WORK
• WORKING CONDITION, HEALTH N SAFETY
• ECONOMICS OPPORTUNITY FOR LOCAL COMMUNITY
• DEMOCRACY, EQUITY N INCLUSION
 SUMMARY OF ESG
GOVERNANCE:
• LEADERSHIP
• EXECUTIVE PAY, AUDITS, INTERNAL CONTROLS
• SHAREHOLDER RIGHT
• DIVERSITY N INDEPENDENT ON THE BOARD
• TRANSPARENCY
• ACCURATE N TRANSPARENT ACCOUNTING
• AVOID CONFLICT OF INTEREST
PROPER MECHANISM
 ASSIGNMENT 2
• 1. WHY IS ESG IMPORTANT FOR THE CORPORATE
• 2.WHAT ARE THE CONSEQUENCES OF HAVING HIGH RISK RATING OF
ESG?
• 3. ARE PROPER (BUSINESS PERFORMANCE RATING ON
ENVIRONMENTAL MANAGEMENT) INDICATORS RELATED WITH THE
ESG INDICATORS
• 4.WHAT ARE THE BARRIER AND OPPORTUNITIES OF ADOPTING ESG?
• 5. WHAT ARE THE EFFORTS TO ACHIEVE LOW RISK OF ESG?
CSR DAN TRIPLE BOTTOM LINE (TBL)
TRIPLE BOTTOM LINE (TBL)
CORPORATE SUSTAINABILITY
• SYNERGIZE TRIPLE BOTTOM LINE: PROFIT, PEOPLE, PLANET
• DEVELOP A CORPORATE GOVERNANCE: INTEGRATE
TRIPLE BOTTOM LINE IN A POLICY, STRATEGY AND
BUSINESS OPERATION
• INTERNALIZE WITHIN THE BEHAVIOUR OF
MANAGEMENT, STAFF AND EMPLOYEE: PRE-EMPTIVE
• MANAGING ENVIRONMENT AND SOCIAL ASPECTS: IS A
NEED, NOT BECAUSE OF SANCTION
 BUSINESS ADMINISTRATIVE
THINKING
• ECONOMIC SOCIAL RESPONSIBILITY
• COMMERCIAL COMPETITIVE EXCELLENCE :

• TRADE GOOD RELATION WITH COMMUNITY

• TECHNOLOGY
• SOCIAL GOOD IMAGE
• ENVIRONMENT
SOCIAL LICENSE

CORPORATE SUSTAINABILITY
 Genesis

replace
scarcity
protect

resources
natural recover

reduce

Resource Efficient and

prevent Cleaner Production
environment

recycle

control
pollution Efisiensi Sumber Daya dan Produksi Bersih
disperse

3
 LESSON FROM COVID-19 : Its Proven!
Human’s activity could improve environmental quality
Economies that are
more circular and
resource-efficient will
see long-term
reduced greenhouse
gas emissions along
value chains; from
logistics and
manufacturing, to the
mines where raw
materials are
sourced.
Less deforestation
and resources
ADD A 28 needed for raw
FOOTER material.
Efisiensi Sumber Daya dan Produksi Bersih
Integrated and continued
application of preventive
environmental practices
and total productivity
techniques to processes,
products and services to
increase efficiency and
reduce risks to humans
and environment.

4
Efisiensi Sumber Daya dan Produksi Bersih
• Finding and implementing ways to
• Improve productive use of materials, water
and energy;
• Thereby
• Reduce the generation of waste,
effluent and emission;
• Thereby
• Improve well being of employees,
consumers and community;
• Thereby
• …….
• ……..

5
Business Case
Cost savings

Productivity enhancements

Quality improvements

Organizational efficiency

License-to-operate

21
 MECHANISM AND CRITERIA OF PROPER
X ENVIRONMENTAL
EXCELLENT
S =

reduction conservation
ENV MNGN SYSTEM

Water Pollution Load

U GOLD

Hazardous Waste
REDUCTION
EFFICIENCY
B

Development
Solid Waste

Community
G

EMSSION
ENERGY

diversity
G

(EMS)
R

Bio
3R

3R
R Passing Grade
A A
D D GREEN
E
E
Passing Grade
SUMMARY DOCUMENT OF ENV. MANAGEMENT
PERFORMANCE
BEYOND COMPLIANCE AREA

Land Degradation Control COMPLY BLUE

Marine Pollution Laut Control
Hazardous Waste Control
UNCOMPLY RED
Air Pollution Control
Waste water Control
EIA Implementation NO EFFORT BLACK

COMPLY TO ENVIRONMENTAL REGULATION

 BUSINESS PERFOMANCE RATING
(PROPER)
• INCENTIVE (NAMING) – DISINCENTIVE (SHAMING)
APPROACHES
• CONTROL AND SUPERVISION

• ENVIRONMENTAL COMPLIANCE
• ENVIRONMENTAL EXELLENCE
 THE TYPE OF COMPLIANCE
– BLUE CATEGORY: REACTIVE, THE END OF THE PIPE

– GREEN CATEGORY : PROACTIVE, THE BEGINNING OF THE PIPE= FROM THE

CRADLE TO THE GRAVE, THROUGH CLEANER PRODUCTION

– GOLD CATEGORY: PRE-EMPTIVE: INTERNALIZING ECONOMIC, SOCIAL AND

ENVIRONMENT IN THE POLICY, STRATEGY AND OPERATION OF COMPANY
EXPRESSED ON THE BEHAVIOUR OF MEMBER OF THE COMPANY
 ASSIGNMENT 3
• 1. WHAT IS (ARE) RELATION BETWEEN GCG AND CORPORATE
SUSTAINABILITY?
• 2. WHAT ARE THE CHALLENGES IN ADOPTING CORPORATE
SUSTAINABILITY?
• 3. AMONG THREE PILLARS OF CORPORATE SUSTAINABILITY WHICH
ONE IS THE MOST DIFFICULT TO REALIZE?
• 4. WHY DOES THE COMPANY NEED SOCIAL LICENCE?
• 5. WHAT ARE CHALLENGES OF ADOPTING CLEANER PRODUCTION
 THE TYPE OF CSR
• CHARITY: PROVIDE FISH, NOT FISHING EQUIPMENT
• INFRASTRUCTURE: ROAD, BRIDGE, EDUCATION AND PUBLIC
INFRASTUSTURES, ETC
• CAPACITY BUILDING: TRAINING & DEVELOPMENT
• COMMUNITY EMPOWERMENT: CREATE SELF-RELIANT
COMMUNITY
 CORPORATE SOCIAL INNOVATION
• CREATING SHARED VALUE
• SHARE VALUE
• INVOLVEMENT OF ALL EMPLOYEE NOT LIMITED TO THOSE
RELATED TO CSR
 CHARACTERISTICS OF CSI (Balamatsias, 2019)
1. Shared Value
• BUSINESS INSTITUTION WILL BE DEVELOPED QUICKLY IF IT SHARES
VALUE WITH COMMUNITY.
2. Strategic Partnership
• PARTNERSHIP WITH OTHER INDUSTRIES TO DEVELOP
ENVIRONMENTALLY FRIENDLY AND SOCIALLY VIABLE.
3. Employee Engagement
• INVOLVE ALL EMPLOYEE, NOT ONLY THOSE DEALING WITH CSI.
4. Governance
• CHANGE FROM top-down TO bottom-up.
5. Resourcefullness
• OPTIMIZED RESOURCES (FLEXIBLE, CREATIVE, thinking outside the box)
6. Product & Service Innovation
• FIND SOLUTION DEALING WITH POVERTY, UNEMPLOYMENT, AS
OPPORTUNITY NOT THREAT FOR CORPORATE
7. Corporate Citizenship
• CREATE THE IMPROVEMENT OF QUALITY LIFE OF PEOPLE AND KEEP THE
PROFITABILITY FOR STAKEHOLDERS
8. Brand Value
• KNOWN AS SOCIALLY AND ENVIRONMENTALLY FRIENDLY COMPANY
SUPPORTING THE IMPROVEMENT OF ITS SALE.
 THE STAGES OF CSI

Sumber: Mirvis, Googins, Kiser, 2012

 Identifikasi Capaian CSI

Sumber: Steele, 2015 Sumber: Portales, 2019

 THE CASES OF CSI
• Ericsson, perusahaan telekomunikasi Swedia, bekerja sama dengan World Meteorological
Organization dan Uganda Department of Meteorology, menciptakan aplikasi peringatan cuaca
yang membantu keselamatan nelayan di Danau Victoria melaui ramalan cuaca yang akurat.
• Danone berkerja sama dengan Grameen Bank mendirikan “Grameen Danone Foods” (GDF)
Ltd untuk peningkatan gizi anak di pedesaan Bangladesh
 Bangladesh: 1/3 penduduk dan 45% anak-anak gizi buruk kategori sedang sampai parah.
 Mensinergikan keahlian Danone di bidang teknis seperti konstruksi, pemeliharaan pabrik
dan produksi makanan/minuman dengan pengetahuan Grameen Bank tentang
pengorganisasian masyarakat pedesaan.
 GDF memproduksi yoghurt yang diperkaya dengan nutrisi penting untuk membantu
perkembangan anak. Produk dijual dengan harga terjangkau bagi mereka yang paling
membutuhkan.
 Manfaat kerjasama meluas hingga ke seluruh rantai nilai (value chain):
• Susu untuk bahan baku yoghurt yang dibeli dari petani.
• Pendapatan langsung dan tidak langsung bagi 1.500 orang dalam radius 30 Km
dari pabrik.
• Memberdayakan jaringan perempuan wirausaha (Grameen Danone Ladies) yang
mendistribusikan yoghurt dari pintu ke pintu dan menerima keuntungan hingga
18 %.
 Di sisi lingkungan, pabrik berproduksi dengan basis lokal: menggunakan energi
matahari untuk memanaskan air yang mereka gunakan, Danone juga mendirikan
“Danone Communities Fund” yang bertujuan untuk mempromosikan dan mendanai
bisnis sosial seperti pabrik Grameen Danone di Bogra, Bangladesh Utara.
 ASSIGNMENT 4
• 1.THERE ARE MANY CASES INWHICH LOCAL PEOPLE ARE ADVERSLY AFFECTED BY
COMPANY’S ACTIVITIES IN THE FORM OF POLLUTION AND ENVIRONMENTAL
DEGRADATION, BUT THE COMPANY DEAL IT BY PROVIDING CHARITY (BASIC
NEED). WHAT DO YOU THINK OF THIS PHENOMENA FROM THE PERSPECTIVE OF
GCG? WHY COMPANY (S) DO THAT.
• 2. IN RELATION WITH QUESTION NO 1, WHAT THE COMPANY SUPPOSED TO DO?
• 3. WHAT ARE THE DIFFERENCES BETWEEN CSR AND CSI?
• 4. GIVE EXAMPLE OF THE COMPANY DOING CSI
• 5.WHAT ARE THE CHALLENGES IN ADOPTING CORPORATE SOCIAL INNOVATION
(CSI)
 REFERENCES
IRINA SAFITRI ZEN. URBAN & REGIONAL PLANNING DEPT, KULLIYYAH OF ARCHITECTURE & ENVIRONMENTAL
DESIGN,DEPUTY DIRECTOR, SEJAHTERA CENTER FOR SUSTAINABILITY & HUMANITY INTERNATIONAL ISLAMIC
UNIVERSITY MALAYSIA EMAIL : IRINAZEN@IIUM.EDU.MY. PRESENTED AT INTERNATIONAL WEBINAR ON CLIMATE
CHANGE COMMITMENT IN THE MIDST OF PANDEMIC COVID-19. PDIL SPS UNDIP, I DESEMBER 2020.