Corporate Social Responsibility

The Implementation of GCG Principles

The concept of Sustainable Development in many countries has become part of the goal of various stakeholders in balancing the people, profit and planet. In Indonesia, the regulatory bodies have pushed for concerted efforts through Corporate Social Responsibility (CSR). These efforts require any business entity to have policies and programs that showcase their commitment in building sustainable relationship with stakeholders.

International Organization for Standardization (ISO), an international entity that set industrial and commercial standards worldwide, has released ISO26000 on the Guidance on Social responsibility. While not mandatory, and only serves as a guideline, ISO provides frameworks and modules that are used internationally on the way CSR can be developed in a company. In Indonesia, ISO26000 has been ratified by the Government in 2010 and has been applied as Standar Nasional (SNI) in 2012.

Commitment and Policy on the Implementation of Corporate Social Responsibility

For the Company, social responsibility is part of commitment that needs to be continually pursued. This is because the Company fully understands that every operational activity carried out has both positive and negative impacts. Therefore, to ensure sustainability, the Company strives to maximize the positive impacts and minimize the negative impacts of each operational activity.

The Company uses approach to ensure its sustainable activities by using the seven core social responsibility subjects contained in ISO 26000. In this case, the subject or scope that is the focus of sustainability is not just economic performance. However, the Company makes every effort to ensure sustainability in accordance with the subject in ISO 26000 which includes:

  1. Good organizational governance
  2. Upholding human rights
  3. Humanitarian and fair labor practices
  4. Management of company activities on the environment
  5. Reasonable operating procedures
  6. Responsibility towards consumers
  7. Involvement in community development.

In the implementation of CSR, the Company strives to fully implement the principles contained in ISO 26000. As a company engaged in energy service industry, the Company is fully aware that its operational activities result in positive and negative impacts to the environment, economy, and community. Therefore, the Company conducts corporate social responsibility as an effort to ensure its business sustainability. The principles of ISO 26000, such as accountability, transparency, ethical behavior, respecting interests of stakeholders, complying the applicable regulations, respecting internationally applicable norms, and respecting human rights, are the principles that the Company adheres to.

The commitment of the Company's CSR implementation is contained in Corsec-K.1.3 (Rev.01) policy and regulated in the Corsec Guidelines - K1.1 (Rev.02). This commitment is guided by ISO 26000 on Guidance on Social Responsibility. In addition, the Company's CSR implementation guidelines also refer to regulations in force in Indonesia.

In terms of reporting, the Company adopts several regulations and reporting standards that apply nationally and internationally. Some reporting standards that are referred to are the Financial Services Authority Regulation, the Global Reporting Initiative (GRI) Standard, and the Annual Report Award criteria. Reported aspects are in accordance with existing regulations and reporting standards and adjust the business nature and material topics of the Company.

Management Organization of CSR Implementation within Elnusa

The management of CSR programs within the scope of the Company is carried out coordinatively between functions within the Company and in groups. The functions involved include the Operations Division, Human Capital, HSSE, Engineering Center & Quality Management, Corporate Secretary and other related functions. However, the responsibility for managing CSR related to community involvement and development lies in the coordination of the functions of the Corporate Secretary.

Plan and Realization of Social Responsibility Program Budget

The Company has allocated funds for the CSR program in 2019 amounting to Rp40.8 billion. Of the budget, 129% has been realized from the initial plan of Rp31.7 billion. Most of the CSR funds are used for CSR activities in the area of operations that focus on community engagement and development. Meanwhile, aspects of human rights management, labor practices, environmental management, reasonable operating procedures, and responsibilities to consumers are binding on the Company's operational costs.