CSR Program Axiata Group in Promoting Human Development
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CSR Program Axiata Group in Promoting Human Development Ardha Prisia* Universitas Airlangga Surabaya Jl. Airlangga No.4 - 6, Airlangga, Gubeng, Surabaya, Jawa Timur 60115 https://ijireview.com/ijir Received: 25 July 2020; Accepted: 1 August 2020; Published e-ISSN: online: 30 September 2020 p-ISSN: IJIR REVIEW 1 (1) (2020): 37-43 Abstract Corporate Social Responsibility is a very broad yet complex concept, DOI: It is a commitment from corporations or businesses to consider the social and environmental impact from their business activities, aims to give a positive impact to the society and the company, either in the aspects of Keywords: CSR, Corporate Social economics, social, environment, or others. This paper discussed the Responsibility, XL, Celcom, Axiata implementation of Axiata Group’s CSR Program and being analyzed by the human development theory, using three indicators that are being Group used in Human Development Index (HDI), namely Education, Health, and Economics. The research is using qualitative methodology to gain the data and pieces of information that are needed and the research found * Corresponding Author that Axiata Group’s CSR program is considered a successful one. However, Phone : the research found that their program is mainly circled in Education Email : [email protected] the companies need to plan the CSR program to improve public health, especiallyand Economic during Field. this But Covid-19 no regard pandemic. for the public health field. Therefore, I. Introduction In running a business, a company sometimes carries out business activities that can cause impacts and disruptions to society, both in environmental and social impacts, either directly or indirectly. To overcome the impact caused by the company’s business activities, it is necessary to implement corporate social responsibility or what is commonly known as corporate social responsibility (CSR), as a way to balance the impacts that have been caused by business activities. CSR is a very familiar concept known in the business and business world, both in the public sector and private(Wardiyanto, 2012, p. 77). Because CSR is one of several parts of Corporate Responsibility or corporate responsibility, so whether there are © Ardha Prisia rules or not, the business sector will continue to carry out CSR as a social responsibility activity to the community (Budiarti & Raharjo, 2014). This work is licensed under the Creative Commons Attribution- Where CSR itself has a very wide and varied scope. Broadly NonCommercial-ShareAlike 4.0 If defined, the concept of CSR is quite broad and complex. International License. world and business or the private sector with the government and localspeaking, communities CSR can be or defined the public as the sector. relationship As well between as the company’s a business relationship with stakeholders or stakeholders (Crowther & Aras, 2008). The definition of CSR is also stated by Solihin (2009). He divides the notion of CSR into three (3) things, namely; The first is CSR as a company›s commitment to improving people›s welfare 37 through discretionary business practices or the to contribute to economic development, improve contribution of company resources. Second, CSR is a public services, and improve welfare, quality of life, way for companies to achieve commercial success by and the competence of the community together respecting ethical values and respecting society and the environment. The third is CSR as a company›s CSR can be used to improve the quality of human desire to consider social and environmental impacts resources,(Astri, 2012). institutions, CSR has severalsavings, benefits consumption, for society. and in the decision-making process as evidence of the investment in citizen households. Likewise with company›s accountability for its decisions and business activities. Wibisono (2007) states that CSR is a form of individualWibisono (2007),employees, who whereexplained CSR that is theused benefits as an business or company commitment to make ethical alternativeof CSR are dividedlearning into tool three; in running namely a businessbenefits foror contributions to the economic development of society. Kurniasari (2015) also explains that CSR is a CSR can provide new skills and abilities that way for companies or the business world to form a thebusiness. community Benefits had for not program previously recipients had. As where well balance and integration of economic, environmental, increase the capacity and capability of employees. have been mentioned above, it can be concluded that as benefitsBesides, for the the implementation company, CSR ofcan CSR be canused also to CSRand socialis a company’s issues. From relationship the definitions and commitment of CSR that with its stakeholders. This commitment is based on seen in Indonesia. In Indonesia, the quantity and considerations of social and environmental impacts qualitycontribute of implementing to financial income. CSR programs One of them continue can beto in the decision-making process and business increase (Tanudjaja, 2006). In 2001, it was recorded activities of the company. To improve the welfare of that CSR funds reached Rp. 115 billion from 180 the people around it. companies and allocated in 279 CSR programs, or The existence of CSR itself was started in 1953. At that time, CSR was only oriented to philanthropic by the company as a program provider. CSR can activities. In its development, CSR was divided besocial used activities. as a medium The benefits to build of aCSR company’s can also beimage felt into three periods, namely the 1950-1960s, 1970- and brand image as well as public trust in the 1980s, and 1990s to date. CSR concept is used today company (Handayani, 2020). refers to the theories of John Elkington in 1998 entitled “Cannibals with Forks: The Triple Bottom its CSR program is the Axiata Group company, Line of21st Century Business (Mondza,2017). In the whichOne is acompany multinational that is verycorporation interesting (MNC to )discuss based book, it is explained that there are three (3) basic in Malaysia. The company is a company engaged pillars for companies or the business world to carry in providing telecommunications providers and out CSR programs, namely, programs that are made has become one of the largest telecommunications and implemented must refer to the triple bottom companies in Asia. XL focuses on Southeast Asia line: People, Profit, Planet. and South Asia, with several subsidiary companies, In Indonesia, the development of CSR has been such as Celcom Axiata Bhd in Malaysia, XL Axiata in around since the 1990s. At that time, the business Indonesia, Ncell in Nepal, Dialog in Sri Lanka, Smart world and companies have implemented activities in Cambodia, and Robi in Bangladesh and others. that have a similar principle base to the concept of To analyze the CSR program of the Axiata CSR such as Corporate Social Activity (CSA), corporate Group, a sample of Axiata Group subsidiary giving and charity, corporate social relations, and companies can be used. In this study, the authors others (Mondza, 2017). However, discussions on limit the two subsidiary companies, namely Celcom the concept and implementation of CSR began to Axiata Berhad, which is the main branch of the be noticed and debated in 2005. CSR was scheduled Axiata Group subsidiary. Both are based in Malaysia. to become a national legislation program and Besides, researchers also took samples from a included in the Limited Liability Company Bill. In subsidiary of the Axiata Group based in Indonesia, 2007, officially CSR regulations and discussion of PT. XL Axiata. CSR in Indonesia were included in several laws and regulations such as; Article 15 and Article 34 of Law II. Method Number 25 of 2007 concerning Investment, Article This research uses qualitative-descriptive 74 of Law Number 40 of 2007 concerning Limited research methods. This qualitative-descriptive Liability Companies, Law Number 4 of 1982 and research intended to understand a phenomenon Law Number 23 of 1997 concerning Environmental and explain this phenomenon (Sugiyono, 2008), in Management (Harahap , 2010). this case, the CSR program of the Axiata Group, in It is important to discuss and develop CSR detail. In conducting research and writing articles, itself. CSR plays a role in the social and economic the author uses several data and information environment. CSR is also a business commitment IJIR REVIEW 1 (1) (2020): 37-43 38 collection techniques, namely using interviews, regional scope. In the social sphere, Axiata Group observation, and documentation or literature study techniques. To obtain the data and information services, helping approximately more than 630,000 needed to explain the CSR program from Celcom workershas supported in agriculture MSMEs modernizeby providing their digital jobs. financial As well Axiata Berhad, researchers used direct interview as empowering more than two million women by techniques to one of the Celcom Axiata Berhad parties. Meanwhile, to obtain data and information services, as well as providing assistance to disaster- about the CSR program from PT. XL Axiata is done strickenusing digital areas, education, and others. employment, and financial through observation and documentation through The Axiata Group has also subsidized 4,000 literature reviews such as previous research, journal families in the provision of electrical energy articles, and news as well as annual reports from services, donating around RM 2 million to the MARA companies. The two branches