Icsd 2012 presentation

Supporting Family Empowerment Program through CSR;

A Case of CSR Partnership Program of PT Adaro Indonesia and POSDAYA in

South Kalimantan

2012 ICSD - Asia Pacific ConferenceYogyakarta - Indonesia, June 27 - 30, 2012

Laila Refiana

Universitas Lambung Mangkurat

Indonesia National Council on Social Welfare

INTERNATIONAL CONSORTIUM FOR SOCIAL DEVELOPMENT

Introduction

• To achieve all MDGs by 2015, the Indonesian government cannot work alone.

• Initiatives and active community participation for achieving the MDGs is highly encouraged without awaiting official programs from the government.


POSDAYA: Family Empowerment Program

• Indonesian National Council on Social Welfare (INCSW) and Damandiri Foundation develop a model of family empowerment program called POSDAYA (Pos Pemberdayaan Keluarga or Family Empowerment Post)


Structure and coordination pattern of social welfare activities in Indonesia

UU No. 32/2004UU No. 11/2009

UU No. 11/2009

President RI

Ministry of Social Affairs

INCSW International Social Organization

GovernorProvincial Social

Dept

BK3S National Social Organization

Regent/MayorRegency Social Dept

K3S Provincial Social Organization

POSDAYA


POSDAYA

• POSDAYA is a forum for communicating, advocating and educating people at the grassroots level in order to strengthen the Indonesian 8 family functions:

• 8 family functions in Indonesia: religious, education, culture, affection, sanctuary, reproductive and health, economy, preservation of environment

• The activities of the POSDAYA are focused on the 4 empowerment areas:



POSDAYA

• Establishment and development of POSDAYA may be initiated by individuals, local community figures or social organizations such as PKK (Family Welfare Movement) groups and religious-based organizations.


The Case of POSDAYA-CSRShared Values between POSDAYA & PT Adaro’s CSR

POSDAYA

• Family planning & health, Education, Environment, Entrepreneurship

CSR PT Adaro

• Health, Education, Environment, SMEs development


Free cataract surgery for the poor elderly

Many CSR activities can be defined as public-private partnerships (PPP). PPPs include many activities where companies share their resources with governmental, intergovernmental and/or social organizations.

Why cataract surgery?

• Indonesia is one of many countries with the highest number of people who suffer blindness; in fact Indonesia has the highest incidences of blindness in Southeast Asia (World Health Organization 2011). According to the World Health Organization (WHO 2011), approximately 3.5 million Indonesians, or roughly 1.47 percent of the population, experience blindness in both eyes. The major causes of blindness in Indonesia are cataracts, glaucoma and refractive errors. The annual increase in the number of new cataract patients is around 210,000 people per year. Blindness is a public health problem of serious economic and social development for every country. Eye disease and blindness is increasing, especially for those over 65 years old. The higher the age, the higher the risk of eye health. If it is treated well, 80 percent of cataracts can be cured with surgery.


Empowerment family through health program of elderly

• The problem of elderly health cannot be solved by the government alone - all components of society including government, community, and private sector need to be involved.

• By 2008, almost 3,500 patients had undergone cataract operations (Adaro Report 2008). PT Adaro sponsors free cataract surgery for the poor elderly as its CSR initiative, which helps to restore vision to poor people with curable blindness.

• PT Adaro renders free treatment and surgery to victims who are largely poor and residents of grassroots areas who cannot afford the surgery.






How to Establish a Partnership Empowerment Program


• Typically, the Coordinating Agency of Social Welfare Activities of South Kalimantan (BK3S) board members begin with performing research on CSR programs of companies in surrounding areas.

• BK3S are proactively addressing POSDAYA in order to help private organizations to direct their CSR programs and establish a partnership between BK3S’ POSDAYA and their CSR programs.

How to Establish a Partnership Empowerment Program

• Partnership programs should be designed to be consistent with management’s philosophy and corporate goals.

• PT Adaro advertises its desire to provide free cataract surgery because of its concern over numbers of cataract illness in Indonesia.

• Adaro’s social responsibilities and corporate goals are aligned to POSDAYA in health empowerment. Both are concern with elderly and health problems in Indonesia.


CHALLENGES FACED BY POSDAYA TO ACCESSCSR PROGRAM/FUNDING

• In many undertakings, mining companies prefer to work with political leaders for CSR such as Bupati (Regent) for the reason of company operations continuity.

• CSR funding is commonly acknowledged to have hidden political purposes used by regional leaders for their political campaigns.

• A viable network should not be mainly built on partnering with government agencies which are known to be lacking in stability because of the short periodic changes in government leadership.

• Emphasis, therefore, should be placed on socio-cultural approaches to give greater empowerment to civil society (Suyono 2009).


CHALLENGES FACED BY POSDAYA TO ACCESSCSR PROGRAM/FUNDING

• BK3S of South Kalimantan is successful in playing its role as a Bridging Service (Coordinating Agency) between Companies such as PT Adaro and communities.

• The role is not transactional, but simultaneous in nature. BK3S of South Kalimantan each year receives IDR 50 million to IDR100 million in financial support from PT Adaro Indonesia as part of its CSR program. This funding is meant to support partnership programs in community social welfare activities.


BK3S way to get the CSR funds are as follows:

• Invite Company’s CSR person to be a speaker/resource person in family strengthening /empowerment activities of BK3S

• Offering a cooperation to run the family strengthening/empowerment activities

• Applying for a detailed proposal of work program

• Delivering a report on implementation of the funding assistance from the Company's CSR

• Always maintain good relationships with the contact person of the CSR Company


Fundraising (BK3S experience):

Fundraising is an important part of the strengthening of family empowerment programs.

• Understanding of Adaro’s CSR Programs. Look at the company’s website and learn about PT Adaro’s CSR priority programs.

• Personal approach for lobbying the company. Find out the contact person who is in charge of CSR programs

• Selling idea. Showing the values of the activity and the benefits for PT Adaro. CSR is considered as Public Relationsfor companies. CSR helps companies to build good image.


Fundraising (BK3S experience):

• Social organizations should value honesty, ethical integrity, transparency and accountability. Write a progress report. Therefore, social organizations must be able to provide an accountable report of funding usage.

• Give acknowledgment/recognition to PT Adaro. Companies use their donations to gain honor in their communities. BK3S ensures that communities they assist appreciate PT Adaro for the free cataract surgery programs.


Conclusion

• To achieve MDGs by 2015 requires a three-party synergy: i.e. government, society, and business organizations.

• There are many CSR programs that should be acknowledged by social organizations in order to conduct partnership empowerment programs.

• POSDAYA as society initiatives and CSR programs of business organizations may work together to support the Indonesian government.

• A partnership empowerment program between POSDAYA and Adaro’s CSR in South Kalimantan is a good practice of a synergic partnership.


Conclusion

• Based on the experience of partnership empowerment program in South Kalimantan, a partnership program can be established if there are

(1) shared values between non-profit organization and a company’s CSR programs;

(2) a personal approach is taken by non-profit organization board members to the company.


Thank you for your kind attention
