The program targets more than 1,000 good business people in West Papua.
Some Benefits of CSR for Companies in West Papua
Conceptually, Corporate Social Responsibility or CSR is a company’s concern for three basic principles with the term triple bottom line, which consists of profit, people, and planet.
The many benefits of Corporate Social Responsibility or CSR make the program mandatory. The functions of CSR for companies in West Papua are as follows:
1. Lead to Increased Performance
One company that has implemented a CSR program is PT. Buana Sanjaya. This company has carried out its responsibility towards the environment around this company.
This company implements a CSR program because the CSR program will provide corporate value and lead to increased company performance.
Improved financial performance will gain a positive response from the market to increase the company’s value.
The most commonly implemented CSR in West Papua by a company is the provision of assistance in the form of water and posyandu donations.
This program is to seek a good response from the community. A company must realize the importance of paying attention to the environment and society.
In addition, CSR is also closely related to company value where. If the company has good environmental and social performance, it will also affect company profits.
2. Widen Access to the Market
With the CSR program in West Papua, all investments and expenses can gain broader and greater market access.
This step can also build consumer loyalty and even penetrate new target markets. A well-run CSR program can make the company’s name or brand more famous.
3. Building Good Relations with Regulators
Not only can the company’s relationship with the community improve, but with CSR, it can also establish a better relationship with the government.
The existence of this CSR program will further ease the burden on the government as a regulator.
The government has a big responsibility to protect the environment and its people. However, with CSR, this role can be performed by companies.
4. Reducing the Company’s Business Risk
For companies, holding CSR can reduce business risk. CSR will build better corporate relations with the parties involved, so business risks such as riots can be handled easily.
Thus, companies can use the costs of transferring risks to other things that benefit society or the company.
5. Improving Relations with Stakeholders
In addition to building good relations with the community, and regulators, CSR can also improve relations with company stakeholders, including shareholders.
Implementing this program of CSR will facilitate communication with stakeholders, which, of course, will increase trust in the company concerned.
6. Creating a Good Social Environment
An excellent social environment supports long-term business success. The reason is it can minimize the friction that occurs between the community and the company.
Not a few companies have been protested by the community because they are considered not to impact the surroundings positively. As a result, the company can survive in a short time.
7. Improving West Papua Employee Performance
Looking at it from the inner side, companies that have carried out CSR programs well are a source of employee pride.
Positive energy can indirectly be channeled to employees so that there is an increase in employee performance. Employees will be more productive in carrying out their work activities.
Every company in Indonesia, including in West Papua, needs to carry out CSR programs, especially in the environment around the company.
The company should contribute to the community and preserve the surrounding environment.