Sustainable Multinational Businesses: A Case Study On CSR Practices At PT. BUMI Resources Tbk. and...
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Transcript of Sustainable Multinational Businesses: A Case Study On CSR Practices At PT. BUMI Resources Tbk. and...
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“Sustainable Multinational Businesses: A Case Study On
CSR Practices At PT. BUMI Resources Tbk. and PT. Kaltim
Prima Coal, Its Subsidiary”
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COMPANY PROFILE
Name: PT. BUMI Resoueces Tbk.
IDX Code Name: BUMI
Established: June 26th, 1973
Go Public: IPO, 1990
Address : Bakrie Tower 12th Floor
Rasuna Epicentrum Complex,Jl. H.R. Rasuna
Said, Jakarta 12940 - Indonesia
Tel. +62 21 5794 2080
Fax. +62 21 5794 2070
Holding Company: BUMI Plc., London
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PHILOSOPHY
VisionTo be a world-class, global operator within the energy and mining sectors.
MissionAchieving sustainability and global competitiveness to:
Increase return on investment for shareholdersImprove the welfare of our employeesEnhance public prosperity around our mine sitesSustainably preserve the environment surrounding our operations
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CSR At BUMI PLC.,LONDON
Establishing a committee:
HEALTH, SAFETY, ENVIRONMENT & COMMUNITY COMMITTEE
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AWARDS• “Best Winner” for Tropical buildings Complex
Category was awarded to Cattle Farming (PESAT) in post-mine land, D2, Murung.
• “Best Winner” for Natural Resources Category in the2011 Indonesian Sustainability Reporting Award
• Gold Medal in GKPM (Community Development Work Event)
• Award for Indonesian Community-Based Water Supply Program
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CEO’s OPINION About CSR
Getting the “social license to operate” and “crafting the corporate’s good images “ (Harmoni magazine p. 19)
Ari S HudayaCEO--PT. BUMI Resources
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GOOD CORPORATE GOVERNANCE (GCG)
Through the implementation of GCG (Transparency, Accountability, Responsibility, Independence, Fairness), and by joining United Nation Global Compact, the company seems to fulfill the 3 dimensions (Transnationality, Content Dommains, & Perspective) of transnational CSR offered by Marne L Arthaud-Day
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GCG IMPLEMENTATION--2012
The development of Business Continuity Management Systems (BCMS) and Corporate Social Responsibility (CSR) Blueprint.
• BCMS ObjectiveTo minimize the risk and to ensure continuation of operations in the event of disruption, whether due to a major disaster or a minor incident.
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• CSR Best Pracatices Plan--2012
• Establishment of effective CSR organization.
• CSR strategic communication blueprint.
• Define the shared values through mapping of available potential local resources and human resources capabilities.
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ANOTHER PERSPECTIVE
Nurdiana, a graduate student of MM Program IPB, in her thesis: “Analisis Efektifitas Implementasi Corporate Social Responsibility at PT. Kaltim Prima Coal”.
There are at least 3 aspects that PT. KPC needs to address in order to improve the effectiveness of its CSR programs:
• Individual aspect• Group aspect• Organizational aspect
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COMPETITOR’s CSR PRACTICES
• CSR At PT. ADARO ENERGY Tbk.
• By championing the principles of mutual respect, partnership, long-term and sustainable commitment, Adaro’s Corporate Social Responsibility (CSR) programs encompass four key areas, economic development, educational enhancement, health improvement, and social cultural promotion.
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GCG PRACTICES
• Good Corporate Governance Principles
• Business Ethics and Code of Conduct
• Organs of the Organization
• The Rights and Role of the Shareholders
• The Rights and Role of Stakeholders
• Statement of GCG Implementation
• Institutionalization of GCG Practices
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STAKEHOLDER’s OPINIONS• Ahmad Yani, Rubber Farmer: “Adaro must continue
this program.”• Firman Yusi (NGO Founder & Executive Director of
Seraba Kawa Learning Center): “I used to see Adaro as an Environment offender,In FACT…”
• Drs. H. Abdel Fadillah Regional Secretary and Head of CSR Drafting Team: “Adaro improves local economy.”
• Abdul Karim Owner of Drinking Water Refill Station “Rezky Ajib”: “We grow because of Adaro.”
• Eli Durgawati Housewife, Activist of Tabalong Local Community: “Adaro helps in various ways.”
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CONCLUSION• Both companies are the largest and second largest
thermal coal producers in Indonesia.
• Both companies apply Good Corporate Governance practices.
• Both companies perform good CSR practices justified by stakeholders opinions and CSR related awards.
• PT. BUMI Resources Tbk. has a clearer strategy on CSR, since they have corporate CSR Strategic Framework & Implementation Plan, and CSR strategic communication blueprint, on the other hand PT. Adoro has a management system of CD and a special foundation for CSR matters: “Yayasan Adaro Bangun Negeri.”
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BIBLIOGRAPHY
• Deresky, Helen. International Management: Managing Across Borders and Cultures, Texts & Cases, 2008. New York: Prentice Hall.
• BUMI Plc. Board of Directors. Terms of Reference, 2008. London: BUMI Plc.
• L. Arthaud-Day, Marne: Transnational Corporate Social Responsibility: A Tri-dimensional Approach To International CSR Research, 2005. Business Ethics Quarterly, Volume 15 Issue I.
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• PT. BUMI Resources TBK, 2011. ” Annual Report 2011”. Available at: http://www.bumiresources.com/index.php?option=com_financialinfo&task=category&id=28&Itemid=52
• PT. Kaltim Prima Coal, 2009. “Laporan Pembangunan Berkelanjutan 2009”. Available at: http://www.kpc.co.id/pdf/SDRKPC200923Nov.pdf
• PT. Kaltim Prima Coal. “Laporan Pembangunan Bekelanjutan 2010”. Available at: http://www.kpc.co.id/pdf/SR2010Final.pdf
• Nurdiana. Analisis Efektifitas Implementasi Corporate Social Responsibility at PT. Kaltim Prima Coal, 2008. Bogor: Program Studi Manajemen dan Bisnis Sekolah Pascasarjana Institut Pertanian Bogor.
• Harmoni Magazine, Edisi XIII, Volume IV, Januari 2010. Available at : http://www.bakriesumatera.com/new /images/stories/csr/harmoni/harmoni%20edisi%2013.pdf