Sustainable Multinational Businesses: A Case Study On CSR Practices At PT. BUMI Resources Tbk. and PT. Kaltim Prima Coal, Its Subsidiary

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“Sustainable Multinational Businesses: A Case Study On

CSR Practices At PT. BUMI Resources Tbk. and PT. Kaltim

Prima Coal, Its Subsidiary”


COMPANY PROFILE

Name: PT. BUMI Resoueces Tbk.

IDX Code Name: BUMI

Established: June 26th, 1973

Go Public: IPO, 1990

Address : Bakrie Tower 12th Floor

Rasuna Epicentrum Complex,Jl. H.R. Rasuna

Said, Jakarta 12940 - Indonesia

Tel. +62 21 5794 2080

Fax. +62 21 5794 2070

Holding Company: BUMI Plc., London


PHILOSOPHY

VisionTo be a world-class, global operator within the energy and mining sectors.

MissionAchieving sustainability and global competitiveness to:

Increase return on investment for shareholdersImprove the welfare of our employeesEnhance public prosperity around our mine sitesSustainably preserve the environment surrounding our operations


OWNERSHIP


SUBSIDIARIES


FINANCIAL HIGHLIGHTS


STOCK PERFORMANCES


CSR At BUMI PLC.,LONDON

Establishing a committee:

HEALTH, SAFETY, ENVIRONMENT & COMMUNITY COMMITTEE


Corporate Governance


Corporate Structure


CSR At PT. BUMI Resources


CSR At PT. BUMI Resources





AWARDS• “Best Winner” for Tropical buildings Complex

Category was awarded to Cattle Farming (PESAT) in post-mine land, D2, Murung.

• “Best Winner” for Natural Resources Category in the2011 Indonesian Sustainability Reporting Award

• Gold Medal in GKPM (Community Development Work Event)

• Award for Indonesian Community-Based Water Supply Program


CEO’s OPINION About CSR

Getting the “social license to operate” and “crafting the corporate’s good images “ (Harmoni magazine p. 19)

Ari S HudayaCEO--PT. BUMI Resources


STAKEHOLDER’s OPINIONS


GOOD CORPORATE GOVERNANCE (GCG)

Through the implementation of GCG (Transparency, Accountability, Responsibility, Independence, Fairness), and by joining United Nation Global Compact, the company seems to fulfill the 3 dimensions (Transnationality, Content Dommains, & Perspective) of transnational CSR offered by Marne L Arthaud-Day


GCG IMPLEMENTATION--2012

The development of Business Continuity Management Systems (BCMS) and Corporate Social Responsibility (CSR) Blueprint.

• BCMS ObjectiveTo minimize the risk and to ensure continuation of operations in the event of disruption, whether due to a major disaster or a minor incident.


• CSR Best Pracatices Plan--2012

• Establishment of effective CSR organization.

• CSR strategic communication blueprint.

• Define the shared values through mapping of available potential local resources and human resources capabilities.


AWARDS Related GCG


ANOTHER PERSPECTIVE

Nurdiana, a graduate student of MM Program IPB, in her thesis: “Analisis Efektifitas Implementasi Corporate Social Responsibility at PT. Kaltim Prima Coal”.

There are at least 3 aspects that PT. KPC needs to address in order to improve the effectiveness of its CSR programs:

• Individual aspect• Group aspect• Organizational aspect


COMPETITOR’s CSR PRACTICES

• CSR At PT. ADARO ENERGY Tbk.

• By championing the principles of mutual respect, partnership, long-term and sustainable commitment, Adaro’s Corporate Social Responsibility (CSR) programs encompass four key areas, economic development, educational enhancement, health improvement, and social cultural promotion.



CSR BUDGET


GCG PRACTICES

• Good Corporate Governance Principles

• Business Ethics and Code of Conduct

• Organs of the Organization

• The Rights and Role of the Shareholders

• The Rights and Role of Stakeholders

• Statement of GCG Implementation

• Institutionalization of GCG Practices


STAKEHOLDER’s OPINIONS• Ahmad Yani, Rubber Farmer: “Adaro must continue

this program.”• Firman Yusi (NGO Founder & Executive Director of

Seraba Kawa Learning Center): “I used to see Adaro as an Environment offender,In FACT…”

• Drs. H. Abdel Fadillah Regional Secretary and Head of CSR Drafting Team: “Adaro improves local economy.”

• Abdul Karim Owner of Drinking Water Refill Station “Rezky Ajib”: “We grow because of Adaro.”

• Eli Durgawati Housewife, Activist of Tabalong Local Community: “Adaro helps in various ways.”


SURVEY RESULTS--2010



CONCLUSION• Both companies are the largest and second largest

thermal coal producers in Indonesia.

• Both companies apply Good Corporate Governance practices.

• Both companies perform good CSR practices justified by stakeholders opinions and CSR related awards.

• PT. BUMI Resources Tbk. has a clearer strategy on CSR, since they have corporate CSR Strategic Framework & Implementation Plan, and CSR strategic communication blueprint, on the other hand PT. Adoro has a management system of CD and a special foundation for CSR matters: “Yayasan Adaro Bangun Negeri.”


BIBLIOGRAPHY

• Deresky, Helen. International Management: Managing Across Borders and Cultures, Texts & Cases, 2008. New York: Prentice Hall.

• BUMI Plc. Board of Directors. Terms of Reference, 2008. London: BUMI Plc.

• L. Arthaud-Day, Marne: Transnational Corporate Social Responsibility: A Tri-dimensional Approach To International CSR Research, 2005. Business Ethics Quarterly, Volume 15 Issue I.


• PT. BUMI Resources TBK, 2011. ” Annual Report 2011”. Available at: http://www.bumiresources.com/index.php?option=com_financialinfo&task=category&id=28&Itemid=52

• PT. Kaltim Prima Coal, 2009. “Laporan Pembangunan Berkelanjutan 2009”. Available at: http://www.kpc.co.id/pdf/SDRKPC200923Nov.pdf

• PT. Kaltim Prima Coal. “Laporan Pembangunan Bekelanjutan 2010”. Available at: http://www.kpc.co.id/pdf/SR2010Final.pdf

• Nurdiana. Analisis Efektifitas Implementasi Corporate Social Responsibility at PT. Kaltim Prima Coal, 2008. Bogor: Program Studi Manajemen dan Bisnis Sekolah Pascasarjana Institut Pertanian Bogor.

• Harmoni Magazine, Edisi XIII, Volume IV, Januari 2010. Available at : http://www.bakriesumatera.com/new /images/stories/csr/harmoni/harmoni%20edisi%2013.pdf

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Sustainable Multinational Businesses: A Case Study On CSR Practices At PT. BUMI Resources Tbk. and PT. Kaltim Prima Coal, Its Subsidiary