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Oleh: Mas Achmad Daniri

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.

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Mas Achmad Daniri

Berpengalaman sebagai CEO di sektor keuangan dan industri, khususnya di industri pasar modal dan industri elektronika. Terbukti berhasil menerapkan teknologi baru pada industri pasar modal. Berpengalaman dalam membuat dan mengembangkan peraturan pasar modal dan bursa efek. Berhasil dan sukses dalam memimpin bursa efek Jakarta pada pada masa krisis ekonomi. Berhasil mensosialisasikan konsep Good Corporate Governance. Sebagai pengajar dan pembicara di seminar-seminar pasar modal dan Corporate Governance di banyak universitas dan lembaga pendidikan. Aktif baik sebagai anggota maupun pengurus di Komite Nasional Kebijakan Governance, sejak 30 November 2004 menjabat sebagai Ketua Komite Nasional Kebijakan Governance.