FCGI - Forum for Corporate Governance in Indonesia

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Help Desk, In-Company Presentations and Discussion Meeting, Individual Company Counseling.

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FCGI is stimulating Good Governance, Sustainability and Corporate Responsibility in Indonesia.

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Research into Corporate Governance system and procedures in Indonesia in comparison to other countries.

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Saturday, 22 Jul 2017

Publication

Does Sustainability Help the Profitability of a Company ?

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Article by Irene Hofland

No company can afford anymore to ignore corporate social responsibility (CSR) and sustainability. Thoughts are divided as to whether a company should do more for society than running its business, such as building schools, which is usually regarded as CSR. There is however growing consensus that all companies must take responsibility for minimizing the negative impact of their operations on the physical and social environment, which is called sustainability.

Sustainability therefore, is becoming a must for companies, not only for their license to operate in a community, but also increasingly for their access to markets. And it would be a mistake to think that sustainability is a thing from Europe or North America and that people in emerging countries are not interested in this. A recent survey by Anglo Dutch food giant Unilever showed that the people with the highest concern for sustainability among the countries they surveyed were in China and India.

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FCGI Research into the Relationship between Sustainability and Competitiveness : Full Report

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The relationship between CSR and competitiveness: the Indonesian case

The growing worldwide recognition of the need for companies to become sustainable and to optimize economic contribution, environmental performance and social responsibility, has become more important in Indonesia. Indonesia is the first country in the world to make Corporate Social Responsibility mandatory by Law instead of voluntarily. Indonesia has a fast growing economy, but there are still 32 million people living below the poverty line and Indonesia is one of the most polluted countries in the world. Most pressing environmental issues for Indonesia are the depletion of raw materials, energy and water, the loss of biodiversity, and the pollution of air, water and soil. Most pressing social issues for Indonesia are the underdeveloped communities, incidences of corruption, and inequality between men and women. Indonesian culture doesn’t support sustainable behaviour, therefore, in the growth path towards becoming a developed country, the government obliged Indonesian companies to limit their environmental and social impacts by implementing sustainable practices. This must not affect the competitiveness of these companies in a negative way, which leads to the purpose of this study: to find out if CSR has a positive effect on competitive advantage for Indonesian companies. When there is a positive relationship between these two concepts, investment in CSR practice could become more interesting for Indonesian companies.

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Introducing Synergy For Life

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A Meeting Place for NGO and CSR of Companies

synergy4lifeInternational Labour Organization (ILO) and Indonesian Netherlands Association (INA) finally launched synergy4life. This website facilitates direct involvement among CSR programs and NGO. With clear facilities and functions, downloadable documents on the website can be reviewed not more than one until three clicks from mainpage.

This information source is developed as follow up of partnership forum from ILO to achieve the goals of Eradication of Child Labor on 2016.

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Forum for Corporate Governance in Indonesia (FCGI)
Gedung Menara Jamsostek, Tower A - 20th Floor Room 2002
Jl. Jendral Gatot Subroto No.38, Jakarta 12710 - Indonesia
Phone: +62 21 52902177, Fax: +62 21 52902178, Email: cic@fcgi.or.id