By; Mas Achmad daniri 

Good Afternoon Ladies and Gentlemen,

 

I am very glad to have this opportunity to share with all of you our experience in implementation of Corporate Social Responsibility in our Company.

 

Even though, this session is a very tough time for all of us after having a heavy lunch and some of you may start the critical seven minutes to feel sleepy, but I hope that my presentation will make you interested.

 

As you may have your understanding on the definition of Social Responsibility, there are also various kinds of definitions, which are worldwide understood, but I prefer to quote the definition from ISO 26000.

Why? Hopefully, this will be the standard concept to be applied all over the world in upcoming 2010.

 

The Social Responsibility shall be explained as the responsibility of an organization for the impacts of the decision and its activity which consist of process, product and services, for the society and environment, through the transparent and ethical behavior, that:

•Contributes to sustainable development including health & the welfare of society;

• Take into account the expectations of stakeholders;

• Incompliance to the applicable law & consistent in international norms;

• Integrated throughout the organization & practiced in its relationship.

 

Basically, according to ISO 26000, CSR always focus and indicate the Seven Core Subjects of Social Responsibility. These subjects can be explained as follows:

 

1.Corporate Governance

2.Human Rights

3.Labor Practices

4.Fair Operating practices

5.Consumer Issues

6.Environment,

7.Community Involvement and development

 

Principally, company that implement good corporate governance, will result into well implemented on the other six core subjects.

CSR shall be part of business strategy in related with company core business, in other word, the implementation of CSR must be exercised in all level of integrated business activities, for example, in manufacturing company, starting from supply chain, Raw Material, Production process, products itself, marketing and sales and including the process of waste management.

Such waste shall be recognized as hazardous waste and CO2 emissions. That waste management is mainly in accordance to Panasonic Global Policy to eliminate those bad impacts.

 

If we are going to assess every business process is actually part of the company business strategy, then we must refer to the seven core subjects and of course we must prioritize the compliance with related law and regulation. On top of that, company could design CSR program beyond the rules and regulation, which is adjusted with company’s strategy and capacity on one side, and the necessity of community on the other side.

 

In fiscal 2008, we embarked on a new three-year management plan called the GP3 plan. The overarching aim of the plan is to transform Panasonic into a manufacturing-oriented company. The plan also sets forth milestones and strategies to launch Panasonic into the next phase of growth, guiding us toward our aim to achieving global excellence. The challenge is expressed in terms of the three “GP” goals of Global Progress (evolving through global sales expansion), Global Profit (enhancing profitability worldwide) and Global Panasonic (building a globally trusted brand). Enhanced implementation of CSR management in all regions of the world is a key point emphasized in the GP3 plan.

 

Globally, Panasonic companies do have policy to implement the six initiatives in CSR activities, which are:

 

1.Coexistence with the Global Environment;

 

2.Corporate Citizenship;

 

3.For a sound society;

 

4.Creating an Excellent workplace;

 

5.Responsibility in products and services;

 

6. CSR Procurement.

 

 

As the implementation one of the six initiatives, “Coexistence with the global environment, Panasonic has taken proactive initiatives to realize one of its twin business visions, “Coexistence with the Global Environment.” And these days, a global community starts regarding the global warming issue as a top priority for all mankind.

 

Amid this trend, Panasonic announced its “eco ideas” Strategy in October 2007 and added it to the basic stance of the medium-term plan. This strategy arose the notion that the growth of business and reduction of the environmental impact are wheels that drive our vehicle, and the Company is tackling the issues more aggressively by setting clear numerical targets for all business sites and reflecting the results in performance evaluations.

 

Panasonic group companies have 3 commitments, which are:

 

1. “Eco ideas” for products

We focus on global warming prevention as the most critical issue by increasing the number of products with the No. 1 energy-efficient performance and phasing out low energy-efficient products, as well as accelerate the development of environmentally conscious products with recyclable design and careful choices of materials. For example, refrigerator with inverter technology resulting less power consumption, but increase the performance in operation. The other product is Washing Machine with zero stand by power and resulting in 40% less power consumption too. Inverter technology in Air Conditioner create less power consumption as much as 50%. Energy saving lamp is also resulting in less power consumption up to 80% reduction. The above eco products are indicating that Panasonic is not only selling the consumer products but also introducing environmental friendly products, which create good impact in reducing the CO2 emissions.

 

 

 

 

2. “Eco Ideas” for manufacturing

Focusing on reduction of CO2 emissions from factories worldwide in an absolute term, we reduce CO2 emissions by improving productivity across all manufacturing processes, such as R&D, procurement, manufacturing, sales, logistics, recycling, administration and others.

 

3. “Eco Ideas” for everybody, everywhere

We will spread eco activities to the local communities throughout the world in cooperation with various stakeholders focusing on environmental initiatives by employees and their families.

 

As the implementation of eco manufacturing, PMI has promoted “Clean Factory Programs”, that will give good result in numerous kind of saving in energy, waste, chemical and water from 2009 up to 2012.

 

For energy saving, we have changed our production line into Cell Production system, which is more efficient and less consumption of electricity, use natural lighting instead of light bulb by changing the roofing into transparent roof and finally promote the tree-planting program.

Through these activities, the expected reduction of CO2 emissions is 1,699 ton.

 

For waste management, we changed our painting process into Pre Coated Material, which do not need any painting process, recycling the Styrofoam waste and convert the organic waste into fertilizer. These activities shall reduce the total waste of 1,221 ton.

 

For chemical control, PCM production line reduced the use of painting material, which create chemical waste and will reduce the consumption up to 50 ton.

 

For water control, PCM production line also contribute in reducing the water consumption because of no painting process anymore that need water in large volume and also continuing water recycling process. This shall reduce the water consumption of 76 million liter.

 

 

In next slide, we can see the above clean factory programs in glance of example applied in our factory. This slide shows the eco manufacturing activities, such as:

 

·        Electricity saving to reduce CO2 emissions through changes in production line into cell system;

·        Reduce chemical waste and water consumption through changes spray painting system to pre-coated material (PCM); and

·        Tree planting in factory compound to absorb the CO2 emissions resulting from manufacturing process.

 

This slide also shows the other eco manufacturing activities, such as:

 

·        Replace the light form fluorescent lamp to transparent roof in daytime;

 

·        Recycling the Styrofoam in pellet to be used for material of plastic powder;

 

·        Converted the organic waste into fertilizer.

 

The last eco ideas activities, which is eco ideas for everybody, everywhere, every Panasonic employee is urged to create ideas which focusing in environmental friendly and its implementation.

 

Through this activities, it encourage people to stop using plastic bag and change to re-usable bag or Panasonic “eco ideas” bag.

 

It is designed and made giving minimum impact to environment. Did you aware, that:

 

·        Usage of plastic bags by people in the world is approximately 1 trillion pieces in a year; and

 

·        One people consumes averagely 150 plastic bags in a year; then

 

·        One kg plastic bag needs 2 liter of crude oil to produce;

 

·        Meanwhile, burning of 5 pieces of plastic bags resulting 1 kg CO2, which contributes to the global warming.

 

Please take into your consideration that at every time of your usage of plastic bag, it shall create more and more contribution of CO2 emissions.

 

Last year, during the ceremony of the commemoration of Indonesia and Japan friendship, Panasonic in Indonesia held an Expo which focusing in “eco-ideas.” Several environment activities had been executed during the ceremony, such as eco-lecture, eco-quiz, eco-action and eco-stand.

 

The following example, which easily explained to the visitors (especially young generation), the impact of global warming, the worst effect to the glaziers, damage of the coral reef, climate changes and caused flood, failure in harvest, effect to the ecosystem, and finally bad impact to human health.

 

Basically, such education shall increase the consciousness of the young generation and be the one of the company responsibility to the society in related to the 3P (Planet, People and Profit) and always remind them the eco products from Panasonic.

 

In conclusion, CSR is not a cost, but an investment. CSR is strategic planning, involves all business process. In the long run, CSR will be profitable as long as it is related to the core business. Therefore, CSR is not only complies to, but also beyond the rules and regulations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PT Panasonic Manufacture Indonesia (PMI) is not only running the CSR program, but also beliefs that this program will bring positive impact to sustainable profit of the company and for the benefit of the society.  This CSR program should be a part of business strategy and connected with core business of company

 

CSR in Panasonic Indonesia focusing on the impact of the decision and its activity (including process, product, and services) for the society & environment, through transparent and ethical behavior which involve: Contributes to sustainable development including health, the welfare society, Takes into account the expectation of stake holders, In compliance to the applicable law and consistence in international norms, and integrated throughout the organization & practiced in its relationship.

 

Basically, according to ISO 26000, there are seven core subjects of CSR :

1.      Community involvement and development (Education & culture, skills development, technology development, and ect)

2.      Human Rights (Due diligence, human rights risk situation, discrimination, and ect)

3.      Labor practice (Health & Safety Work, Social dialogue, human development, Training, and ect)

4.      Fair operating practice (Anti corruption, fair competition, promoting SR, and ect).

5.      Consumer issues (Fair marketing, consumer health & safety, consumer services, and ect)

6.      The Environment (Prevention Pollution, sustainable resources use, Climate change awareness, protection of natural environment)

7.      Organizational Governance (Decision making processes and structure)

 

All of the above core subjects of CSR are related and purposed for sustainable development. Company that implement good corporate governance, will result into well implemented on the other six core subjects. The implementation of CSR must be exercised in all level of integrated business activities.

 

Based on ISO 26000, which currently is being developed, if the company is going to assess every business process is actually part of the company business strategy, then company must refer to the seven core subjects and of course must prioritize the compliance with related law and regulation. Moreover, company could design CSR program beyond the rules and regulation, which is adjusted with company’s strategy and capacity on one side, and the necessity of community on the other side.

 

 

PT Panasonic Indonesia Comes up with three-year management plan called the GP3 plan. The aim of this plan is to transform Panasonic Indonesia into manufacturing – oriented company.

 

The terms of GP3 means goals of Global Progress (evolving through global sales expansion), Global Profits (enhancing profitability worldwide), and Global Panasonic (building a globally trusted brand). The plan also includes sets of forth milestones and strategies to launch Panasonic into the next phase of growth, guiding us toward the company aim to achieve global excellence. Implementation of CSR management in all regions of the world is a key point emphasized in GP3 plan.

 

Fundamentally, the company has four different area of running the CSR. They are programs, which are related to a good environment, related to employees, related to supply chains, and program that related to charity to society in close or wide range society. As Panasonic Indonesia and as global company, the company has tendency to implement the six initiatives in CSR activities, which are:

 

1. Coexistence with the global environment

Dedicating itself with the company’s corporate vision of coexistence with the global environment, Panasonic Indonesia implementing environmental management based on an “eco-ideas” strategy and action plan. 

2. Corporate citizenship

Based on the company philosophy of nurturing and coexistence, PT Panasonic Manufacture strives to implement citizenship activities on a global scale, focusing in particular on the themes of children, environment and welfare.

3. For a sound Society

PMI aims to implement management that earns the trust of society at large through practicing compliance in all of our business activities.

4. Creating an excellent workplace

The PMI is striving to improve company’s competitiveness and enable the company’s employees to find their full potential through creating a corporate culture that leverages the capabilities of a diversity of the people, and through hiring and training people capable of displaying leadership on the world stage.

5. Responsibility in products and services

PMI is pulling all effort to create convenient and easy to use product and to constantly improve the quality of our products and services

6. CSR Procurement

PMI works with its supplier to ensure the implementation of CSR throughout out the company’s supply chain.

 

Through those six initiatives above, Panasonic Indonesia has brought a lot of changes inside and outside the company. Panasonic Indonesia has been making a lot of CSR movement inside and outside the organization. Those CSR movements are affecting the performance and people inside the organization especially the employee. These are below examples of CSR activity inside the company.

 

Global warming has been a major issue for human kind and earth. People from business (manufacturing, industries, ect) have been trying to do everything to prevent global warming while they are still be able to produce goods. As the implementation of six initiatives in PMI, particularly the “ Coexistence with the global environment “ mentioned before in previous sections, PMI has taken proactive initiatives to make the company business’s vision happens. And these days, a global warming has become a top priority to be considered in the world. 

 

PMI has made and announced its “Eco Ideas” strategy in October 2007. It also has been added to basic stance of the medium term plan of the company’s plan. This strategy brought the idea that growth of business and the reduction of the environmental impact are wheels that drive the company’s vehicle. Moreover, the company is tackling the issues more aggressively by setting clear numerical targets for all business sites and reflecting the results in performance evaluations. The three commitments of Panasonic Indonesia eco Ideas are:

 

1. “Eco Ideas” for Product

The company has been making examples of the products that support fight against global warming Refrigerator, washing machine, air conditioner, and lamp. The refrigerator with inverter technology resulting 20% less power consumption, but increase the performance in operation. The Washing machine with “zero standby power” and resulting 40% less power consumption and the washing machine also dries faster than average washing machine supported with fast spinning rotary. The air conditioner has also the inverter technology which result in creating less power consumption as much as 50%. Energy saving lamp is also resulting in 80% less power consumption. From all products that have been mentioned, it is indicating that the PMI is not only selling the consumer products but also introducing environmental friendly products, which create good impact in reducing the CO2.

2. “Eco Ideas” for Manufacturing

These eco ideas are dealing the most with reducing CO2 from factories worldwide in an absolute term. The company reduces CO2 emissions by improving productivity across all manufacturing processes such as R&D, procurement, manufacturing sales, logistics, recycling, administration and others. To achieve this goal, the company has promoted “Clean Factory Programs”, that will give good result in numerous kind of saving in energy, waste, chemical and water from 2009 up to 2012.

 

For energy saving, the company has changed its production line into cell production system, which result in more efficient and less consumption of electricity, use natural lightning instead of lighting bulb by changing the roofing into transparent roof and finally promote the tree-planting program. Through these activities the expected reduction of Co2 emission is 1699 ton.

 

For waste management, the company changed our painting process into pre-coated material, which does not need any painting process, recycling the Styrofoam waste and convert the organic was into fertilizer. These activities shall reduce the total waste of 1221 tons.

 

For chemical control, PCM production line reduced the use of painting material, which will produce more chemical waste. This movement will reduce the chemical waste up 50 ton.

 

For water control, PCM production line also contributes in reducing the water consumption because no painting process anymore that need water in large volume and also continuing water recycling process. This shall reduce the water consumption up to 76 million liter.

 

The other things that the company has been doing are recycling the Styrofoam in pellet to be used for material of plastic powder. And converted the organic waste in to fertilizer.

 

The company focuses on global warming prevention as the most critical issues. By increasing the number of products with the number one energy-efficient performance and phasing out low energy-efficient products, as well as accelerate the development of environmentally conscious product with recyclable design and careful choice of material. The company promises to only deliver energy-conserving product and double the number of product with number one energy efficiency.

 

 

3.”Eco Ideas” for everybody

This is the third Eco Ideas, it means for everywhere, every PMI employee is supported to create ideas which focusing in environmental friendly and its implementation. As example ideas from PMI employees for “everybody, everywhere” are:

ž          I will use energy-savings products as much as possible

ž          During shopping, I will use only my carry bag (reusable) and not use the plastic bag given when I purchase stuff

ž          I will take showers instead of baths

ž          I wont run the water when I brush my teeth or shave

ž          I will recycle-to recycle on consumer packaging, bottles, plastics, cans jars, and junk mails.

ž          I will carry may own utensils and not use plastic fork & spoon when I eat out

ž          I will turn off the lights when I leave the room or if it is still bright

ž          I will use fluorescent lights instead of incandescence bulbs.

ž          I will quit smoking in order to reduce air pollution.

 

More over, not only implementing the CSR but the company also spreading their commitment regarding this idea. The PMI are giving more contribution by holding and expo during the ceremony of the commemoration of Indonesia and Japan friendship. The expo is focusing on Eco-Ideas. Several environment activities had been executed during the ceremony, such as eco-lecture, eco quiz, eco-action and eco-stand.

 

The PMI explaining about the Eco-Ideas to the visitors of expo such as; the impact of global warming, the worst effect to the glaziers, damage to the coral reef, climate changes and caused flood, failure in harvest, the effects to ecosystem, and finally bad impact to human health.  The lecturing was focused more for young generations. Basically, such education shall increase the consciousness of the young generation and be the one of the company responsibility to the society in related to 3P (Planet, People, and Profits) and always remind them the eco products from Panasonic. 

 

CSR for ideal company is as a coin as parable, for one side could give social, economic, and environmental benefits for people and planet, on the other side could bring benefits as the continuity of the business, profits, image, and controllable risk management for the company. Consequently, if this CSR program could only give benefits to public and not to both side, it will only brings a failure. The company will not sustained to contribute for its CSR.

 

The CSR program which the company develops is connected with core of the business which also part of the strategy. Regarding the environment, PMI launch the eco ideas that have been mentioned above, which are Eco Product, Eco Manufacturing, and eco Ideas for everybody. These programs are really connected and related to the core of PMI’s business. The first aim for these programs is to create products that are environmental friendly. The environmental friendly products will bring loyalty and trend from customers.

 

Customer would not be bothered with the prices of the products anymore. In the other hand, because they believe that the Panasonic products will lead to save more money due to the products are energy saver, not containing dangerous material, recyclable, high quality, and long lasting. Customers would consider these products as some kind of investment for their money and for saving the earth. As example the air conditioner products, washing machine, water pump, and fan are conquered the market even though the prices are more expensive 5-10% from any other brand.

 

Moreover, its added that its not always involving big cost for CSR program, CSR such as Energy saver its more likely to reduce cost rather than high cost. It could help the company and gain crisis recovery. Another example from CSR that is not involve a lot of cash and impact from the crisis is by cleaning up garbage at the beach,

The CSR program is not always counted on money but also we could work on something, which is not involved cash but the other way around to decrease the crisis impact.

 

In conclusion, CSR is not a cost, but an investment. CSR is strategic planning, involves all business process. In the long run, CSR will be profitable as long as it is related to the core business. Therefore, CSR is not only complies to the rules and regulations, but also beyond it.