Implementation Of The Corporate Social Responsibility Program (Study At PT. Arun NGL, Lhokseumawe)

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The Importance of Corporate Social Responsibility in Business

The development of a country is a shared responsibility, where every individual has an important role in realizing social welfare and improving the quality of life of the community. In this context, the business world also has a significant contribution in encouraging healthy economic growth. At present, the company is no longer only focused on financial records (single bottom line), but also considers social and environmental aspects in its operation (Triple Bottom Line). The synergy of these three elements is the key to achieving the concept of sustainable development (sustainable development). Corporate Social Responsibility (CSR) is an essential aspect of business operations, as it not only benefits the company but also contributes to the well-being of the community and the environment.

Understanding Corporate Social Responsibility (CSR)

One social aspect that needs to be considered in the business world is the social responsibility of corporate or corporate social responsibility (CSR). CSR is an obligation that must be carried out by the company, as regulated in Article 74 of the Latest Limited Liability Company Law (UUPT), namely Law Number 40 of 2007. Although the industry is required to run CSR, this obligation should not be considered a burden, but as an opportunity for have a positive impact. According to the World Business Council on Sustainable Development (WBCSD), CSR is the company's commitment to act ethically and contribute to sustainable economic development. "CSR is not just a moral obligation, but also a business imperative," as stated by the WBCSD.

The Impact of CSR on Business Operations

In the context of PT. Arun NGL, located in Lhokseumawe, CSR implementation has a very large impact, both for the company itself and for the surrounding community. PT. Arun Ngl, as one of the large companies in the energy sector, has a greater responsibility in running sustainable CSR programs. By carrying out CSR activities, companies can improve positive image in the eyes of the community, which in turn can attract more clients and increase profitability. A good CSR program can create added value not only for companies but also for the community and the environment.

Types of CSR Initiatives

Through various CSR initiatives, such as education, health, and environmental preservation programs, PT. Arun NGL not only helps the community, but also strengthen its position in the industry. This activity also shows that the company realizes the importance of building good relationships with local communities, which are part of broader social responsibility. Furthermore, Oyama (2010) states that CSR is not only exclusive activities for large companies, but can also be implemented by small companies. This shows that social responsibility is relevant to all types of businesses. "CSR is not just a luxury, but a necessity for businesses to succeed in the long run," as stated by Oyama.

Analyzing the Benefits of CSR

From an analytical point of view, a good CSR program can create added value not only for companies but also for the community and the environment. When companies invest in programs that focus on community development, they contribute to the creation of a better and more prosperous society. This is an important step towards the achievement of sustainable development goals expected by all levels of society. The benefits of CSR are numerous, including improved reputation, increased customer loyalty, and enhanced brand value.

Conclusion

Thus, the implementation of CSR at PT. Arun Ngl is not just a compliance with the law, but also as a form of company commitment in creating greater social values. This confirms that a company that is oriented to social responsibility has a greater opportunity to succeed in the long run, while making a positive contribution to the community and the surrounding environment. "CSR is not just a moral obligation, but also a business imperative," as stated by the WBCSD. In conclusion, the implementation of CSR is essential for businesses to succeed in the long run, while making a positive contribution to the community and the environment.

Recommendations

Based on the analysis, the following recommendations can be made:

  • Companies should prioritize CSR initiatives that focus on community development, education, health, and environmental preservation.
  • CSR programs should be designed to create added value not only for companies but also for the community and the environment.
  • Companies should invest in CSR initiatives that promote sustainable development and contribute to the achievement of sustainable development goals.
  • CSR should be integrated into the company's business operations and strategy to ensure its success in the long run.

Limitations of the Study

This study has several limitations, including:

  • The study is limited to the analysis of CSR implementation at PT. Arun NGL, and may not be generalizable to other companies.
  • The study relies on secondary data and may not provide a comprehensive understanding of CSR implementation.
  • The study does not consider the impact of CSR on the company's financial performance.

Future Research Directions

Future research should focus on the following areas:

  • Investigating the impact of CSR on the company's financial performance.
  • Analyzing the effectiveness of CSR initiatives in promoting sustainable development.
  • Examining the role of CSR in achieving sustainable development goals.
  • Investigating the challenges and barriers to CSR implementation in companies.

Conclusion

In conclusion, the implementation of CSR is essential for businesses to succeed in the long run, while making a positive contribution to the community and the environment. Companies should prioritize CSR initiatives that focus on community development, education, health, and environmental preservation. CSR programs should be designed to create added value not only for companies but also for the community and the environment. Companies should invest in CSR initiatives that promote sustainable development and contribute to the achievement of sustainable development goals.

Q1: What is Corporate Social Responsibility (CSR)?

A1: Corporate Social Responsibility (CSR) is the company's commitment to act ethically and contribute to sustainable economic development. It is an obligation that must be carried out by the company, as regulated in Article 74 of the Latest Limited Liability Company Law (UUPT), namely Law Number 40 of 2007.

Q2: Why is CSR important for businesses?

A2: CSR is important for businesses because it can improve positive image in the eyes of the community, attract more clients, and increase profitability. A good CSR program can create added value not only for companies but also for the community and the environment.

Q3: What are the types of CSR initiatives?

A3: There are various types of CSR initiatives, including education, health, and environmental preservation programs. These initiatives can help the community and strengthen the company's position in the industry.

Q4: Can small companies implement CSR?

A4: Yes, CSR is not only exclusive activities for large companies, but can also be implemented by small companies. Social responsibility is relevant to all types of businesses.

Q5: What are the benefits of CSR?

A5: The benefits of CSR are numerous, including improved reputation, increased customer loyalty, and enhanced brand value. CSR can also contribute to the creation of a better and more prosperous society.

Q6: How can companies measure the effectiveness of CSR?

A6: Companies can measure the effectiveness of CSR by tracking key performance indicators (KPIs) such as the number of people impacted, the amount of resources invested, and the level of community engagement.

Q7: What are the challenges and barriers to CSR implementation?

A7: The challenges and barriers to CSR implementation include lack of resources, limited understanding of CSR, and difficulty in measuring its effectiveness.

Q8: How can companies overcome the challenges and barriers to CSR implementation?

A8: Companies can overcome the challenges and barriers to CSR implementation by allocating sufficient resources, providing training and education on CSR, and establishing clear goals and objectives for CSR initiatives.

Q9: What is the role of CSR in achieving sustainable development goals?

A9: CSR plays a crucial role in achieving sustainable development goals by contributing to the creation of a better and more prosperous society. Companies can invest in CSR initiatives that promote sustainable development and contribute to the achievement of sustainable development goals.

Q10: Why is CSR a business imperative?

A10: CSR is a business imperative because it can improve positive image in the eyes of the community, attract more clients, and increase profitability. A good CSR program can create added value not only for companies but also for the community and the environment.

Conclusion

In conclusion, CSR is an essential aspect of business operations that can contribute to the well-being of the community and the environment. Companies should prioritize CSR initiatives that focus on community development, education, health, and environmental preservation. CSR programs should be designed to create added value not only for companies but also for the community and the environment. Companies should invest in CSR initiatives that promote sustainable development and contribute to the achievement of sustainable development goals.