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Corporate Social Responsibility

 

According to ISO 26000: 2010, “Guidance on Social Responsibility”, Corporate Social Responsibility (CSR) is Responsibility of an organization for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that contributes to sustainable development, health and the welfare of society; takes into account the expectations of stakeholders; is in compliance with applicable laws and consistent with international norms of behavior; and is integrated throughout the organization and practiced in its relationships.

 

BUMI believes that CSR is a great business concept, not just philanthropic activities, but truly sustainable and valuable for the Company’s stakeholders. The Company increased its focus on CSR by establishing the Governance, CSR & HSE Committee and in part to revise organization structure to include CSR function, and establish Governance, CSR and HSE Department.

 

CSR activities have been conducted by subsidiaries, KPC and Arutmin who have long standing programs and deep experiences in understanding the needs of local communities. While the Company meets the challenges of the economic uncertainty of 2012 and heading into 2013, the work goes on to ensure that communities are empowered individually, and that the benefits of mining operations empower sustainable development in relevant, important ways each and every year.

 

BUMI has developed CSR strategy embedded within the business strategy through a step by step development/implementation for the Company to achieve Good Corporate Citizen (GCC – CSR beyond the rules and regulations) that includes:

 

  • BUMI CSR Flagship.
  • BUMI CSR Strategic Framework.
  • BUMI CSR Strategic Framework Implementation Plans.

 

BUMI’s CSR Flagship is follow:
”To develop self-sustained society through Indonesian uniqueness, usefulness to all and togetherness, supported with an integrated strategic communication for local, national and international communities.”

 

The purpose of the CSR Flagship is to ensure competitive edge amongst investors and customers, mitigate risks, and ensure sustainable development of growth and profit.

 

BUMI continued to establish a strategic framework for CSR activities embedded within the business strategy following the Good Corporate Governance principles using the ISO 26000 guidance in order to establish BUMI as world class Good Corporate Citizen Company.

 

Below is the illustration of CSR Strategic Framework in BUMI:

 

 

This strategic umbrella framework will make the CSR programs in BUMI and its business units well organised within a common theme and flagship, more visible in creating sustainability and values for all of the Company’s stakeholders.

 

The picture below describes the BUMI’s CSR Strategic Framework Implementation Plans:

 

 

The establishment of grand strategy that is truly able to embed CSR with the corporate business strategy is the most significant step taken by the Company.

 

Without the existence of BUMI’s CSR strategic framework, CSR activities in BUMI’s business units will still be scattered and merely taking a role as support functions to mining operations or for compliance purposes. These initiatives to communicate and promote BUMI’s CSR activities and achievements to the international community were largely driven by the Company belief that CSR is a business concept that can truly create value for all BUMI’s stakeholders.

 

Currently, Governance, CSR & HSE Department is supervised under Risk Management Division. BUMI’s Head of Risk Management Division reports to the Board of Directors.

 

Roles and Responsibilities of the Director related to CSR are:
  • Approve the corporate social responsibility policies, objectives and budget.
  • Establish and approve the corporate social responsibility framework philosophy, vision and mission, strategy, objective and target for all aspect across BUMI organization.
  • Approve new or updated Company’s corporate social responsibility policies.
  • Ensure the Company’s CSR policies have been communicated and socialized to all management and employees throughout BUMI and its subsidiaries.
  • Provide the overall leadership and direction for the Company’s corporate social responsibility practices.
  • Ensure that CSR programs/activities and key milestones are implemented properly.
  • Ensure adequate development of the Company’s CSR capabilities, including its infrastructure.
  • Ensure adequate human resources to manage CSR.
  • Ensure the effectiveness of the Company’s CSR performance & implementation.
  • Attend ad-hoc meeting with Governance, CSR & HSE Committee to discuss critical issues requiring immediate attention.

 

Roles and Responsibilities of the Governance, CSR & HSE Committee related to CSR are:
  • Ensure that Company’s policies and standards of performance of social responsibilities are in accordance and comply with the prevailing laws and regulations as well as national and international best practices.
  • Monitor and review the effectiveness of CSR programs and activities of BUMI including the methods used to communicate such programs to stakeholders performed by relevant functions under the Director, as well as to provide recommendations for improvement as it deems necessary.
  • Ensure that Company’s CSR strategies of BUMI developed by relevant functions has included and based upon the social responsibility core subjects of ISO 26000 which include the following matters:
    • a. Human rights
    • b. Labor practices
    • c. The environment
    • d. Fair operating practices
    • e. Consumer issues
    • f. Community involvement and development
  • Review the adequacy of allocated budget and resources for CSR programs and activities of BUMI.
  • Ensure the Company’s identified risks related to CSR are monitored and mitigated properly.
  • Review reports related to CSR, i.e. significant issues of CSR.
  • Ensure that CSR related human resources receive the adequate training to meet the relevant standards set by prevailing regulations and best practices.
  • Provide necessary advices and recommendations relating to CSR to the Board of Directors.
  • Perform other duties relating to CSR beyond those mentioned above, in accordance with what have been agreed and decided by the Committee’s meetings.

 

Roles and Responsibilities of Head of Risk Management Division related to CSR are:
  • Propose the Company’s corporate social responsibility strategy, policy and budget to the Board of Directors.
  • Propose the corporate social responsibility framework for BUMI and its subsidiaries to the Board of Directors.
  • Approve the CSR programs, Term of References and all recommendations from CSR department.
  • Report corporate social responsibility activities to the Board of Directors.
  • Monitor CSR implementation across BUMI and its subsidiaries.
  • Attend ad-hoc meetings with Governance, CSR & HSE Committee and the Board of Directors to discuss critical issues requiring immediate attention.

 

Roles and Responsibilities of Governance, CSR & HSE Manager are:
  • Prepare CSR budget.
  • Develop CSR policies and procedures.
  • Develop CSR programs and Term of Reference (TOR), and submit it to the Head of Risk Management Division for approval.
  • Coordinate and conduct CSR activities across BUMI together with CSR Liaisons.
  • Maintain relationship with different stakeholders such as government, CSR players, NGOs partners and media.
  • Promote CSR awareness throughout the Company.
  • Promote BUMI’s CSR activities to the national and international communities to improve company’s image and reputation in order to add value to the stakeholders.
  • Consolidate all information of CSR activities from CSR Liaisons.
  • Monitor and report the progress of CSR activities/projects/ programs to Head of Risk Management Division.
  • Keep abreast of the latest corporate social responsibility methodologies, techniques and technologies development.
  • Escalate any critical issues requiring immediate attention from executive management to Head of Risk Management Division.

 

Roles and Responsibilities of CSR Liaison are:
  • Responsible as a liaison between BUMI and business units to provide the information dissemination.
  • Assist CSR Department in communicating Company’s CSR policies and procedures in each Business Units.
  • Assist the CSR Department in monitoring the implementation CSR activities in each Business Units.
  • Promote CSR awareness in each Business Units.
  • Update with the latest CSR methodologies, techniques and technologies development.
  • Provide data and assist in report writing of CSR result in each Business Units including their implementation progress to their respective Head of Business Units and CSR Department.
  • Report any critical issues requiring immediate attention from executive management to CSR Department.

 

BUMI’s CSR Road Map
BUMI has developed a road map of the long term Implementation of CSR (< 2012 – 2016).
BUMI CSR Roadmap, as described below, is created based on the CSR Framework as a guideline for the Company to achieve Good Corporate Citizen (GCC - CSR beyond the rules and regulations).

 

 

2012 CSR Specialization
  • CSR activities in the form of community development and public infrastructure projects conducted by each subsidiary: KPC and Arutmin
  • Both companies have conducted CSR best practices in their CSR activities
  • Reporting and monitoring have not been integrated yet with BUMI.
  • Establish Governance, CSR & HSE Committee

 

2012 - 2014 Awareness & Socialization
  • Revise CSR organization structure to include CSR function
  • Establish Governance, CSR & HSE Department
  • Develop and socialize CSR strategic framework
  • Develop and conduct CSR programs/projects at BUMI
  • Participate and receive International CSR awards to promote company’s image

 

2015 CSR Integration
  • BUMI’s CSR programs in harmony with the Indonesian Government is CSR goals
  • The existence of inline reporting communication of CSR activities across BUMI group
  • Effective CSR publication to local/national/international communities
  • Publish BUMI’s Sustainable Report based on GRI guidelines

 

2016 Good Corporate Citizen (GCC – CSR beyond the rules and regulations)
  • CSR programs implementation are beyond the rules and regulations
  • CSR strategic framework serves as the base for BUMI to become a Good Corporate Citizen
  • Maximizing BUMI’s contribution to Sustainable Development

 

BUMI CSR activities in 2012
The following are BUMI CSR activities carried out throughout 2012:

 

  • Taking part in Global CSR Award 2012, Boracay Island, Philippines, on 19 April 2012; BUMI succeeded in achieving Gold Award of CSR Leadership Category through Bapak Eddie J. Soebari.
  • Holding a bazaar (“pasar murah”) on 14 June 2012 in the Masjid Al-Bakrie, Rasuna Epicentrum, Jakarta. As many as 1000 special packages of basic food items were distributed to the underprivileged communities surrounding Kuningan and Menteng Atas areas.
  • Conducting blood donation activity on 4 June 2012 to commemorate the anniversary of PT Bumi Resources Tbk 39th anniversary. In this activity, BUMI collected 156 blood bags from 215 donors.
  • Attending the signing ceremony of scholarship program with Bakrie University on 16 June 2012. PT Bumi Resources granted scholarships to as many as 152 outstanding students from class of 2011 worth approximately Rp15,2 billion. This scholarship program was strong evidence of BUMI’s
  • On 26 June 2012, as the core programs of the 39th anniversary of PT Bumi Resources Tbk, the Company launched BUMI’s CSR strategic framework with a tagline: “Developing Self-Sustained Society”. This strategic framework will make CSR program in BUMI and business units well organized, more visible in creating sustainability and values for all of the Company’s stakeholders.
  • Conducting the second blood donation activity on 4 December 2012 in cooperation with the Indonesian Red Cross of Bekasi branch. In this activity, as many as 211 blood bags were collected from 249 donors.
  • Participating in Asia’s Best CSR Practices Awards 2012, Singapore on 20 July 2012. BUMI was successful in achieving Best CSR Practice Overall Category and Best Developing Sustainable Strategies Category.
  • BUMI Disaster response activity for flood victims on 17 January 2012 in Muara Baru area, Gedung Pompa RT/RW 020/17, Sub-district Penjaringan, District Penjaringan, North Jakarta.
  • Taking part in Asian CSR Award 2012, Bangkok on 26 October 2012. BUMI succeeded in becoming the finalist for the category of “Governance & Society” and “Labor & Employee Engagement”.

 

 

Subsequent Event
BUMI disaster response activity for flood victims was carried out on 17 January 2012 in Muara Baru area, Gedung Pompa RT/RW 020/17, Sub-district Penjaringan, District Penjaringan, North Jakarta. This activity provided aid, which includes blankets, mineral water, bathing equipment, processed food, and biscuits. BUMI’s contribution for CSR program in 2012 amounted to approximately US$ 9.88 million.

 

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© 2017 PT. Bumi Resources Tbk.