by The 5P Foundation

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CSR is a term that is often heard, especially in relation to companies. CSR stands for Corporate Social Responsibility. Corporate means any group of people that work together in a company or organization, whether for profit or non-profit. Thus, interpreted in this way, means that ‘corporate’ means any ‘body’ of individuals and therefore does include NGOs, Public Institutions and Social Enterprises (increasingly known as the Third Sector). In simple terms, CSR is an activity of a company that has a social responsibility to the surrounding community and society at large to stakeholders. CSR is a form of accountability carried out by a company to all parties in it by implementing a program that has benefits. By practicing CSR, companies realize the kind of impact they have on all aspects of society including economic, social, and environmental. Use of renewable energy sources This is done so that companies participate in preserving endangered natural resources. There are renewable energy sources that can be utilized, such as wind, solar power, water and so on. Nature rehabilitation for this type, companies have a responsibility to protect nature, especially for companies that produce waste. Examples of activities include mangrove planting and forest reforestation. Volunteering This activity can be done on a regular or incidental basis, such as sending teachers to remote areas or deploying volunteers during disasters.


Types of Corporate Social Responsibility


Community Relations

This type of implementation of corporate social responsibility concerns the development of understanding between the community and the company. This type is implemented through communication, relationships and information between the community, the company and related parties. In this type of implementation, the implementation of corporate social responsibility tends to lead to forms of direct provision of goods (charity).

Community Services

This type of implementation of corporate social responsibility prioritizes community services to the community around the company. This type seeks to fulfil the interests of the community or the interests of society. This type of community services category usually implements physical development in certain sectors such as health, religion, and education. The company seeks to provide the needs that are needed by the community, so that the problems faced by the community or society can be overcome through company programs.

Community Empowering

This type of implementation provides wider access to the community to improve the standard and quality of life for the community or society. The wider access provided by the company can support community independence. Communities are empowered to increase their capacity to overcome problems faced and develop potential, to improve the quality of life of the community for the better.


Furthermore, regarding the function of CSR, the relevant legislation is not emphasized, however, from the previous explanation we can conclude that the function of CSR is in line with its purpose, namely as a form of PT’s role in sustainable economic development in order to improve the quality of life and a beneficial environment, as well as creating PT relationships that are harmonious, balanced, and in accordance with the environment, values, and culture of the local community. The importance of CSR by considering financial, social and environmental aspects can contribute to creating a balance between social, economic and community conditions where the company operates. In addition, according to J.G. Frynas in a journal entitled Beyond Corporate Social Responsibility, Oil Multinationals and Social Challenges, the importance of Corporate Social Responsibility carried out by companies is as follows to fulfil regulations, laws and rules; as a corporate social investment to get a positive company image; part of the company’s business strategy; to obtain a license to operate from the local community; and part of the company’s risk management to reduce and avoid social conflict.


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