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CORPORATE SOCIAL RESPONSIBILITY: FORMS OF SOCIAL
RESPONSIBILITY AND CORPORATE CONCERN WITH SOCIETY
Introduction
Corporate social responsibility (CSR) is a con- sep that organizations, especially companies,
have various forms of responsibility to all their stakeholders, including consumers,
employees, shareholders, communities and the environment in all aspects of the company's
operations which include economic, social and environmental aspects. Therefore, CSR is
closely related to "sustainable development", where an organization, especially a company,
in carrying out its activities must base its decisions, so that they are not solely based on their
impact in economic aspects, for example the level of profit or dividends, but must also
consider the social and environmental impacts arising from their decisions, both in the short
and long term. CSR can thus be said to be a company's contribution to the goal of
sustainable development, by means of impact management (minimization of negative
impacts and maximization of positive impacts) on all its stakeholders.
Concern for the surrounding community or community relations can be interpreted very
broadly, but in brief it can be understood as increasing the participation and position of the
organization in a community through various efforts of mutual benefit for the organization
and the community. Only in its development is also increasingly complex, along with the
dynamics of the environment that surrounds it. There are several things that affect the
relationship between the organization and its public as it happens in United States, namely
large companies such as Djarum Cigarettes, state-owned companies including PT Pertamina,
PT Telkom and PT Phapros and so on. Many companies now use external audits to ensure
the accuracy of the company's annual report which includes the company's contribution to
sustainable development, usually named the CSR report or sustainable report.
However, these reports are very broad in format, style and evaluation methodology (even
within the same industry). As a result, many critics say that these reports are merely "lip-
service", for example in the case of the CSR annual reports of tobacco companies and other
companies. However, with the development of the concept of CSR and the methods of
verifying the reports, the current tendency is thatThe result is an increase in the veracity of
the report's content. In any case, a CSR report or a sustainability report is an effort to
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improve the company's accountability in the eyes of its stakeholders.
One of the publics that contribute to the formation of an organization's reputation is the
community. Thus, the community is understood as a group of people who have an interest
and are related to the existence of the organization, and seen from the geo- graphic in the
area around the organization (Grunig & Hunt, 1984: 243). Meanwhile, the existence of the
community is important for the continuity of the existence of the organization considering
that the community is a group of people who live in a certain geographical area, so that it
becomes part of the environment in which the organization is located.
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. The development of the free market has formed world economic ties
with the formation of AFTA, APEC and so on. But all of this has encouraged companies
from various parts of the world to compete to provide good together to carry out their
activities in order to improve the welfare of the surrounding community.
If you look at the results of the Earth Summit in Rio de Jeneiro Brazilia 1992, agreed to
change the development paradigm from economic growth to sustainable development. In the
perspective of the company, sustainable development is a program as an impact of the
efforts that have been initiated, based on the concept of partnership and partnership from
each stakeholder. There are five elements that make the concept of sustainability important,
namely: 1) availability of funds, 2) environmental mission, 3) social responsibility, 4)
implemented in policy (community, corporate and government), 5) has profit value (Idris,
2005).
Although many CSR proponents separate social donations from good deeds, social
donations are actually only a small part of CSR. Companies in the past have often spent
money on community projects, scholarships and the establishment of charitable foundations,
but they have also often advocated for charitable giving and encourage its employees to
volunteer to take part in community projects, thereby creating goodwill in the eyes of the
community, which will directly improve the company's reputation and strengthen the
company's brand. With the acceptance of the concept of CSR, especially the triple bottom
line, companies have a new framework in which to place social activities.
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CSR is not just a charitable activity but requires a company to make decisions that are truly
beneficial, so that they take into account the impact on all stakeholders, including the
environment. This requires the company to create a balance between the interests of various
external stakeholders and the interests of shareholders, who are one of the internal
stakeholders.
According to David C. Korten, business over the last half century has become the most
powerful institution on the planet. The dominant institution in any society must take
responsibility for the common good, so that every decision made, every action taken must be
seen in the framework of this responsibility. According to the Word Business Council for
Sustainable Development (WBCSD), a global association of around 200 companies
specializing in sustainable development, CSR is an ongoing commitment by businesses to
act ethically and contribute to the economic development of their local communities and
society at large, while improving the lives of their employees and their families.
The Millennium Poll on CSR (1999) conducted by Environics International (Toronto),
Conference Bosrd (New York) and the Prince of Wales Business Leader Forum (London)
among 25,000 respondents from 23 countries showed that in forming opinions about
companies, 60% said that business ethics, practices towards employees, impact on the
environment, which are part of corporate social responsibility (CSR), play the most
important role. Another 40% say that corporate image and brand image influence their
impression the most. Only a third base their opinion on funda- tional business factors mental
factors such as financial factors, company size, company strategy or management. However,
the attitude of consumers towards companies that are considered not to do CSR is to want to
punish 40% and 50% will not buy products from the company concerned and or talk to
others about the shortcomings of the company (Chrysanti Hasibuan-Sedyono).
The negative events that have befallen a number of companies in United States, especially
after re-formation, should be a valuable lesson for company owners, so that company
management gives better attention and responsibility to the community, especially around
the company's location. Therefore, the survival of a business is not only determined by the
level of profit, but also the company's social responsibility. In fact, what happens when
many companies are protested, blasphemed, and even destroyed by the community around
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the factory location.
However, if examined further, this could be one of the causes, due to the lack of attention
and responsibility of company management and owners towards the community and the
environment around the company's location. In fact, investors only reap profits and exploit
the natural resources in the area without paying attention to environmental factors. In
addition, there are many cases that almost no company profits are returned to the
community, instead what happens is that the community is marginalized in its own area.
Discussion
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
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system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
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needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
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practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
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future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
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company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
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commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
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in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
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such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
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development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
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Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
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the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
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Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
17
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
18
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
19
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
20
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
21
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
22
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
23
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
24
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
25
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
26
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
27
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
28
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
29
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
30
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
31
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
32
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
33
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
34
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
35
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
36
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
37
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
38
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
39
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
40
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
41
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
42
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
43
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
44
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
45
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
46
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
47
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
48
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
49
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
50
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
51
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
52
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
53
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
54
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
55
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
56
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
57
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
58
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
59
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
60
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
61
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
62
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
63
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
64
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
65
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
66
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
67
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
68
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
69
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
70
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
71
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
72
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
73
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
74
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
75
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
76
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
77
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
78
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
79
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
80
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
81
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
82
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
83
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
84
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
85
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
86
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
87
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
88
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
89
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
90
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
91
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
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produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
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Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
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substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
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micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
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result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
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and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
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This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
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increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
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0
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
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1
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
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2
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
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3
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
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4
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
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5
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
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6
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
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7
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
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8
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
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9
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
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0
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
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1
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
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2
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
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3
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
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community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
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5
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
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6
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
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7
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
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8
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
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9
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
12
0
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
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1
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
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adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
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3
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
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Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
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5
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
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CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
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The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
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operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
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Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
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publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
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Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
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known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
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community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
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4
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
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5
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
13
6
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
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7
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
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8
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
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9
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
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organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
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1
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
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2
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
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3
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
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programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
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5
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
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relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
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interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
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8
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
14
9
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
15
0
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
15
1
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
15
2
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
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3
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
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4
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
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5
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
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Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
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each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
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Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
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9
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
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0
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
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In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
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2
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
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According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
16
4
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
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5
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
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6
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
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organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
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8
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
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the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
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action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
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developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
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long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
v Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
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expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
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interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
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This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
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Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
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company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
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8
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
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9
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
18
0
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
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1
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
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prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
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maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
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contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
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the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
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relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
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the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
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In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
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continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
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company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
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acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
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need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
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with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
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socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
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It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
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6
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
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relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
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The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
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maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
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To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
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reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
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priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
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Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
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So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
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of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
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opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
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In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
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that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
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9
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
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0
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
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1
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
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Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
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3
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
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referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
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can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
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responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
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organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
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The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
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In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
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participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
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through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
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there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
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3
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
22
4
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
22
5
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
22
6
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
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creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
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However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
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company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
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Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
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carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
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public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
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the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
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and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
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the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
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practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
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organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
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consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
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the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
24
0
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
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1
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
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2
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
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3
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
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4
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
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5
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
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current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
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clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
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the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
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9
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
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organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
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In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
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Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
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3
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
25
4
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
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5
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
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6
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
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Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
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In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
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experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
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opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
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information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
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and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
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but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
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relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
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contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
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Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
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interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
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Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
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9
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
27
0
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
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1
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
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and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
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Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
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behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
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social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
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However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
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Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
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with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
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effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
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economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
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so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
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organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
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least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
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4
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
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5
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
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community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
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is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
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From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
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surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
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by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
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relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
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inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
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of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
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1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
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the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
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person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
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strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
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goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
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9
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
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0
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
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1
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
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2
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
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3
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
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organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
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According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
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responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
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However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
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of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
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programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
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adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
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there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
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Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
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public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
31
4
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
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5
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
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able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
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public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
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regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
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In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
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Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
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The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
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input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
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The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
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found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
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Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
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allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
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example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
Systems Approach in Public Relations
The systems approach is believed to be able to explain the interdependence of organizations
with their environment in carrying out activities to achieve goals. According to Kreps (1986)
there are at least four important implications of the systems approach to understanding
organizations. The first implication is that interdependence shows that one part and another
part are interconnected. However, to achieve effective organizational work, all functional
parts must be coordinated through communication, so that communication activities are used
to share information and persuade each other to work together.
The second implication, in a systems approach, shows how openness brings implications for
organizations to be aware of environmental changes. The third implication, based on the
micro and macro analytical frameworks, shows that there are several organizational levels
within the organization itself. The micro analysis focuses on the internal workings of the
organization, while the macro analysis is more about the organization's relationship with its
environment. This has significance for internal and external communication channels and
how they are used together. The fourth implication shows that organizations are not static,
but dynamic due to adaptation and innovation in organizations. In fact, organizations need to
be flexible and adapt to environmental changes. This is where information exchange occurs
through external channels of communication.
However, the systems approach adopted in the discussion of public relations in the macro
level is very much related to how the organization interacts with the environment that
surrounds it. In fact, the practice of public relations is influenced by how the organization
interacts with its environment, in this case with its stakeholders. To see this, there are two
system approaches that can be used, namely the open system approach and the closed
system approach.
In a closed system approach, the organization views the public not as a direct part of the
organization, but between the two there is an impenetrable barrier. While the needs,
expectations and opinions of the public are not taken into consideration in decision making,
on the contrary, the public is used as an organizational object. Therefore, the interaction is
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unidirectional, namely, from the organization to the public. In organizations like this, public
relations function more as a mouthpiece of the organization to convey information from the
organization to the public and not the other way around. Only public re- lations programs are
created to shape the image in accordance with the will of the organization and are aimed at
maintaining the status quo. Public relations in this case is as an executor of organizational
policy and is not involved in making it, so the technical role is ultimately more dominant.
Meanwhile, in the open system approach between the organization and the public is
considered to have no impenetrable separation boundaries. This approach radically tries to
change the view in a closed approach, by placing the public as part of an organization that is
not separated. Therefore, the organization sees the pub- lik as part of the organization that
determines the life of the organization, so that the organization seeks to know the needs,
expectations and public opinion related to the organization, which is then used as input and
consideration in making organizational decisions. Thus, organizational policy is actually the
result of mutual agreement from both parties.
In an open system, the role of public relations is as a facilitator of communication between
the organization and its public, so that in its function it helps the organization to explore and
map public opinion which then conveys it to the organization. Vice versa, that public
relations helps convey and socialize organizational policies to the public. However, if self-
adjustment occurs on both sides, both the organization and the public as a result of mutual
agreement.
Meanwhile, in carrying out this function, public relations ultimately does not only act as a
policy executor or technician, but rather public relations carries out more managerial roles
by providing input to management and being involved in the policy-making process. So
public relations can help organizations prevent crises by providing input for the changes
needed by the organization, as well as directing programs to change the si-cap and public
behavior, so that the nature of public re- lations is more proactive efforts than reactive.
In relation to Corporate Social Responsibil- ity, the open system approach is believed to be
able to empower its public, considering that the public is placed in a balanced position,
interdependent and not dominating each other. The open system approach in relation to
corporate social responsibility is developed more specifically into a communitarian approach
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9
(Wilson, 2001). This approach emphasizes that the rights of each party are recognized, but
the implementation is accompanied by a sense of responsibility. No one party will be
sacrificed to fulfill the rights of another party, but each develops a sense of responsibility.
To identify this Bellah (in Wil- son, 2001) has four values that form the basis of
communitarian relationships. First, the combination of individual values and the rejection of
various forms of domination with the fact that a quality overall community is a prerequisite
for quality individuals and organizations. Second, the value of solidarity in this case is that
one party exists because of the organization's relationship with the other party. The third
value is the commu- nitarian relationship which is a counterweight to the existence of
diverse individual and organizational membership. The fourth value is participation in the
community, which is both a right and a responsibility. However, the relationship will be
good when all members of the community, both individuals and organizations, participate in
the community and the organizations within them participate in supporting the community
and helping to solve various problems faced together.
Corporate Social Responsibility and Organizational Social Responsibility
Corporate Social responsibility according to the World Business Council on Sustainable
Development is the commitment of a business or company to behave ethically and
contribute to sustainable economic development, while improving the quality of life of
employees and their families, local communities and society at large. Another definition of
CSR is a company's responsibility to adapt to the needs and expectations of its stakeholders
with respect to ethical, social and environmental issues in addition to economic ones (Warta
Pertamina, 2004). Corporate Social Responsibility (CSR) as part of public relations is a form
of organizational responsibility. As stated by Bernays (in Grunig & Hunt, 1984), "Public
relations is the practice of social responsibility". This is also supported by the results of
Gildea's research (in Daugherty, 2001) which shows that respondents place business
practices, support for the community and treatment of employees as important indicators of
organizational social responsibility. However, Buch-Holz (in Daugherty, 2001) chose to use
the term public responsibility to replace social responsibility. According to him, public
responsibility relates to the goodwill of the organization to be actively involved in various
public issues, even though they are not directly related to the interests of the organization.
This involvement may begin with identifying and researching public issues, but the goodwill
to discuss them in the public arena and the ability to cooperate with other parties in the
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0
public arena are also important solve the problem at hand.
In an effort to realize its social responsibility, the form of public relations contribution is
done through the functions carried out (Grunig & Hunt, 1984; 443), namely, internal
reporting and exter- nal reporting. Through internal reporting, public relations acts as a
provider of input to management based on public opinion about organizational behavior that
is considered responsible or not. However, specifically public relations carries out a process
referred to as issues management, which is the capacity to understand, mobilize, co-ordinate,
and direct all stra- tegic and policy planning functions, and all public af- fairs/public
relations skills towards the achievement of one objective: meaningful participation in the
creation of public policy that affects personal and institutional destiny (Chase, 1984).
While external reporting from public re- lations can take the form of social reports and
social au- dit. Social report contains a report on the organization's contribution to its public.
This report includes, among others, community relations activities, employee participation
in community activities, environmental conservation, equal opportunities for women and
minority groups and other social activities. Meanwhile, social audits look at social
responsibility based on financial calculations that are used for the public interest. This is
usually done by external consultants.
Corporate Social Responsibility
Corporate Social responsibility according to the United States CSR study group is a serious
effort from a business entity, to minimize the negative impact and maximize the positive
impact of its operations on all stakeholders in the economic, social and environmental
domains in order to achieve sustainable development goals. Implicitly, this definition means
inviting companies to be serious in their efforts to provide benefits for their presence for
mankind today. Minimizing negative impacts is part of the effort to provide benefits in the
future.
According to Philip Kotler, CSR is said to be discretionary, which in a broad sense means
something that needs to be done. If not done, it will be self-defeating, but this is not a
regulation that is required (currently in United States it is required through the Company
Law). According to the World Business Council for Sustainable Development, CSR is not
just discretionary, but a commitment that is a necessity for good companies to improve the
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quality of life. Philosophically, if a company strives to be useful to mankind, it will certainly
continue to exist in the long run.
In providing benefits, companies need to have priorities and strategies. One important
priority is the existence of the company itself, to maintain sustainable business institutions
(the ability to generate long-term profits). This will certainly be a strategic goal, especially
since the ability to generate long-term profits will only be realized if the company's presence
can be useful and supported by stakeholders. Stakeholder support will be realized if negative
impacts on the socio-economic and environmental domains can not only be minimized but
can also have a major positive impact on stakeholders.
However, CSR programs that include poverty reduction, environmental preservation and
sustainable economic development are part of the company's sustainable development
efforts. They help companies to improve financial performance and access to capital,
increase corporate age and sales/services, maintain quality of work, improve decisions on
critical issues and handle risks more efficiently and reduce risk long-term costs. Some may
disagree with the statement that social responsibility is linked to corporate profits. Therefore,
there is nothing wrong if CSR can also be interpreted as an investment, which means that in
making an investment, the company will assess the return it will get. Thus, CSR can be
interpreted as a corporate responsibility (business entity) to stakeholders and shareholders.
Petkoski and Twosw (2003), CSR as a business commitment that plays a role in supporting
economic development, working with employees and their families, local communities and
society at large to improve their quality of life in ways that benefit business and
development. In the European Commission's Green Paper, it is stated that most definitions
of corporate social responsibility refer to a concept of integrating social and environmental
concerns into the company's business operations and voluntary interactions between the
company and its stakeholders. There are at least two things associated with corporate social
responsibility, namely social and environmental considerations and voluntary interactions
(irianto, 2004).
In the principle of responsibility, significant emphasis is actually given to the interests of the
company's stakeholders. The company is required to pay attention to the interests of the
company's stakeholders, create added value from products and services for the company's
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stakeholders and maintain the sustainability of the added value it creates. Meanwhile,
company stakeholders can be defined as parties with an interest in the existence of the
company. These include employees, consumers, suppliers, the community, the surrounding
environment and the government as a regulator.
Even so, CSR as a corporate idea is no longer faced with responsibilities based on a single
bottom line, namely corporate value reflected in its financial condition alone, but corporate
responsibility must be based on triple bottom lines. This is where other bottom lines besides
financial are also social and environmental. Because financial conditions alone are not
enough to guarantee the value of the company to grow sustainably (sustainable), then the
company will only guarantee if the company pays attention to the social and environmental
dimensions. Therefore, it has become a fact how the re- sistence of the surrounding
community in various places and how the company's social and environmental dimensions
are not always considered time comes to the surface against companies that are considered
not paying attention to social, economic and environmental aspects (Idris, 2005). However,
for companies that do have a good reputation generally enjoy six things. First, good
relationships with community leaders. Second, a positive relationship with the local
government. Third, less risk of crisis. Fourth, a sense of pride in the organization among
target audiences. Fifth, mutual understanding between internal and external target audiences.
Sixth, increasing the loyalty of company staff (Anggoro, 2002).
CSR itself is part of the community relations program, which is the task of public relations,
so that the implementation of social responsibility can be interpreted as "an institu- tion's
planned, active, and continuing participation with and within a community to maintain and
enhance its environment to the benefit of both the institution and the community" (Baskin,
1997). There are at least three dimensions of organizational relations with the public that are
part of community relations, namely com- munity investment involvement, and community
commitment (Ledingham & Bruning, 2001).
However, there is an interdependent relationship between organizations and communities, as
stated by The Community Relations Section of Champion International Corporation's Public
Affairs Guide: We are important to those com- munities. Our payroll may be the bulwark of
the area's economy. The taxes we pay support local schools and government. Our voluntary
contributions, both financial and in the form of employees' personal services, help the
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communities grow and prosper. And these communities are important to us. Without public
acceptance, no industry can realize its full potential is essential and must be earned (Grunig
& Hunt, 1984).
So the interdependence motivates organizations to design community relations programs.
According to Grunig and Hunt (1984), community relations programs can be divided into
two types. The first type of program is a program that focuses on activities to assist
organizational communication with local community leaders. Meanwhile, the second
program focuses on activities that involve the organization in community activities, such as
supporting the education process and schools or making donations to local organizations.
Community relations program implemented to achieve several objectives (Cultip, Center &
Broom, 2000). First, providing information to the community about the organization itself,
the products it produces, the services it provides and the activities it carries out. Second, to
correct misunderstandings and respond to public criticism along with efforts to garner
support and positive opinions. Third, obtaining legal support that will affect the working
climate of the community. Fourth, find out the knowledge attitudes and expectations of the
community. Fifth, support health, education, recreation and cultural activities. Sixth, get
good recognition from the local government. Seventh, help develop the local economy by
purchasing goods from the local area.
The achievement of community relations goals will be influenced by the way the
organization views and treats its community. In this case, the role of public relations in the
organization becomes important. Wilson (2002) identifies four important activities that a
public relations person needs to carry out. First, helping the organization so that leaders see
the importance of community relations and see the importance of the organization's role in
the community. They need to convince the organization of its responsibility to be involved
in community development and prosperity efforts. This responsibility to improve the quality
of life of the community is necessary, not because it will bring profit, but because it is the
moral responsibility of the organization.
The second role of public relations is to help organizations realize that the community does
not only consist of investors (Stoke- holders), but they also consist of stakeholders, namely
employees, consumers, competitors, material suppliers and other public groups with whom
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relationships need to be developed. Furthermore, since this perspective that emphasizes the
need for relationships with the community is new, there has not been much evaluation of it.
Here, the third role of public relations is to convince the organization that the evaluation of
the organization's success is not only in financial terms, but also in terms of the application
of the organization's social responsibility and the acceptance of the community. Finally, the
fourth role is to develop the organization's culture and values, including instilling them in all
members of the organization, which ensures good community relations.
The role of public relations is in line with Baskin and Latimore's (1997) opinion on the
function of public relations in organizations include: First, the management function. To
carry out this function, PR provides input to management in the formulation of the mission,
vision, goals and policies of the organization based on the results of public opinion
exploration and assists the organization in making necessary changes, especially in times of
crisis. This is based on two things, namely 1) PR monitors and explores public opinion so
that it can then represent public interests and predict public reactions to organizational
policies, and 2) PR functions to communicate organizational policies to the public.
Second, the communication function. As a communication function PR can be seen from
four things, namely communication skills or expertise that need to be owned by public
relations, work activities that are usually carried out, systems that are formed and
operationalization of the use of systems that have been formed and operationalization of the
use of systems that have been formed include: 1) basic communication skills. There are at
least three basic skills that a public relations person needs to have, namely the ability to
listen, write and speak, both in the context of organizational communication and speaking in
front of the public. In addition to these three things, to carry out a managerial role, a PR
person also needs to have the ability to conduct research, compile plans and evaluate
research results. 2) PR includes various work activities related to the communication process
such as producing releases, company profiles, or internal magazines, including campaign
programs to create awareness of certain issues or to create a positive image of the
organization. 3) PR plays a role in building a communication system such as a system for
collecting information from the public, forming groups of people or communities to get
input, or by establishing good relationships with editors and journalists. 4) PR is related to
the activity of utilizing existing communication systems.
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Third, the function of influencing public opinion. In PR activities, there is a lot of contact
with public opinion. There are at least three things that public relations can do, namely; 1)
PR helps organizations to build relationships with the public. 2) Public relations interpret
public opinion and convey it to the organization as input. 3) When talking about public
opinion, one of the things that the public highlights is the issue of social responsibility, so
that publicrelations help organizations realize social responsibility through its programs.
In connection with the management function, Hutapea (2000) explains that PR is a
management function to help enforce and maintain mutual rules in communication, in order
to create mutual understanding and cooperation between the institution or company and its
public. In addition, it assists management in responding to public opinion, organizing and
emphasizing management's responsibility in serving the interests of the community, helping
to monitor acting as an alert system and being on guard in the face of various bad
possibilities, and using research with effective and persuasive communication techniques to
achieve all of that.
In a business environment that is constantly changing and evolving according to the
dynamics of the organization, public relations must be placed on a higher platform. The
needs of a growing company are not only to develop products or services, but must do more
to foster positive and consistent relationships with the parties involved with the organization.
Therefore, in order to develop and function optimally public relations must be supported by
various parties (Octavia, 2003).
Management and Implementation of Corporate Social Responsibility
According to Idris (2005), the real substance of the existence of CSR is in order to
strengthen the sustainability of the company itself in a region, by building cooperation
between stakeholders facilitated by the company by developing programs for the
development of the surrounding community. Therefore, in terms of the company's ability to
adapt to its environment, the community and stakeholders associated with it, both local,
national and global. It is expected that the development of CSR to the future should refer to
the concept of sustainable development.
The principle of sustainability emphasizes growth, especially for the poor in managing their
environment and the ability of institutions to manage development, and the strategy is the
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ability to integrate economic, ecological and social dimensions that respect ecological and
socio-cultural diversity. Then in the development process, three core stakeholders are
expected to fully support, including, company, government and society.
In implementing CSR programs, the three elements above are expected to interact and
support each other. Therefore, the active participation of each stakeholder is needed in order
to create synergy, to realize a comprehensive dialogue. However, with the active
participation of stakeholders, it is expected that decision-making, implementation and
accountability of CSR implementation will be shared. Only in terms of viewing and
responding to CSR in the future, there needs to be a series of studies and socialization within
the company from all departments.
At least to equalize perceptions among actors and policy makers within a company, the
current paradigm of corporate management, both at the local and global levels, is not
necessarily understood by managers and policy makers in one company, so that the
understanding of the discourse and implementation of CSR varies and will automatically
experience obstacles internally in the company.
In the implementation of CSR, public relations (PR) has an important role, both internally
and externally. In the context of the formation of the company's image, it can be said that
publicrelations is involved in all areas of discussion above. Starting from fact finding,
planning, communicating to evaluation. So when we talk about CSR, we are also talking
about the public relations (PR) of a company, where CSR is part of commu- nity relations.
Therefore, CSR is basically a PR activity so that the steps in the PR process also color the
steps of CSR. According to Kelly (2001), there are five managerial stages, namely research,
goal setting, program development, implementation, evaluation and ending with mentoring.
Furthermore, these stages can be explained as follows (Cultip et al, 2000 & Kelly, 2001).
Community relations is a planned activity of an organization. According to irianto (2004)
there are two approaches taken by public relations. First, in the old PR concept that positions
the organization as a donor, the community relations program is only part of the action and
communication in the PR process. If based on fact-gathering and problem formulation it is
found that the urgent problem is to deal with the community, then in the planning will be
prepared community relations program, which will be followed by a community relations
program.
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It is carried out through action and communication. Second, considering the community as a
partner and the concept of community is not just a collection of people who live around the
organization's area of operation, communi- ty relations is considered as a separate program
that is a form of organizational social responsibility.
By using the stages of the cyclical PR process, CSR programs and activities are carried out
through the following stages. In this stage, public relations conducts research to obtain
existing facts related to the organization. There are at least three things that need to be
identified, namely, first, the internal conditions of the organization, including identification
and evaluation of organizational policies, activities and products (goods and services)
produced, as well as organizational expectations of the community. There are at least five
organizational expectations of the community, namely good service from local government,
clear and fair tax rules, a comfortable environment for employees to work, support for the
workforce and ultimately support for the business and its products. Second, the facts that
exist in the public, in this case the identification of the community. Third, analyze the
opportunities associated with building good community relations. Fourth, based on the facts
obtained then public relations identify the main problems or major issues related to
community relations.
Planning stage. Based on the identification of problems and the findings of existing facts,
public relations determines short-, medium- and long-term goals. To achieve these goals, a
community relations program is formulated, which basically consists of two types of
programs, namely communication programs and organizational stability programs in the
community. Planning is a forecast based on facts and information about something that will
materialize or happen later. However, to realize what is predicted, a program is made, and
each program is usually filled with various activities. Activities as part of the program are
the steps taken to realize the program in order to achieve the goals that have been set.
Action and communication phase. In this stage, two strategies were developed, namely,
action strategies related to program implementation, changes needed to achieve the goals set.
Second, a communication strategy that deals with efforts to communicate the program.
Public relations is basically a two-way communication process that aims to build and
maintain an organization's reputation and image in the eyes of its public. Therefore, in CSR
programs, there is always an aspect of how to structure the message to be conveyed to the
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community and through the media to convey the message and get input from the
community.
Meanwhile, the action in implementing the planned program is basically the same as
implementing any program. For example, when the education and skills training program is
implemented, there must be a room for both the delivery of theory and a workshop as a place
of practice. This is where the action of education and training is carried out, but of course
there is communication that explains why the program is being carried out, and the issue of
the organization's social responsibility to its community so that it chooses to carry out the
activity program. In this way, it is hoped that the community will develop a positive view of
the organization so that the reputation and image of the organization will be good.
Evaluation stage. Evaluation is a must at the end of each program or activity to determine
the effectiveness and efficiency of the program. According to Cul-tip, Center and Broom
(2000) the evaluation process can be carried out at three stages of the public relations
process, namely, 1) the preparation stage, such as evaluating the completeness of
information related to the community, the choice of media, and the preparation of messages.
2) the implementation stage such as the number of participants, the number of messages
delivered and the frequency of activities. 3) the resulting impact such as changes in attitude,
behavior or social changes that occur. Based on the results of this evaluation, it can be
known whether the program can be continued, stopped or continued by making some
improvements and refinements. However, in the context of community relations, evaluation
is not only carried out on the implementation of programs or activities, but also evaluates the
attitude of the community towards the organization. Therefore, evaluation of public attitudes
is necessary because community relations, although a form of organizational social
responsibility, is still a public relations activity.
Mentoring stage. The community relations program is an ongoing program, so in this case
public relations needs to do the following. First, always Inform the community of the latest
developments in the organization, such as presenting the annual report or the organization's
latest policies that impact the community. Second, develop reciprocal communication that
allows the community to express their opinions and receive feedback. Third, regularly make
contact with the community to maintain and foster good relations, such as by attending
regular community meetings or inviting the community to organizational activities.
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The stages of public relations management can be described as a cycle of organizational
relations with an active public. The results of the evaluation accompanied by the mentoring
process will produce inputs for the formulation of the next public relations program.
Conclusion
Corporate Social Responsibility (CSR) is a growing discourse in the business or corporate
world. This discourse is used by companies in order to take a role in facing the economy
towards a free market. However, in reality, CSR is not necessarily practiced by all
companies. Some are successful in providing real material to the community, but in the
public sphere the company's name fails to attract people's sympathy. This is because CSR is
practiced in a haphazard manner and is not supported by a good concept. Actually, the
substance of CSR is to strengthen the sustainability of the company itself in a region, by
building cooperation between stakeholders facilitated by the company by developing
programs for the development of the surrounding community. However, to understand
community re- lations, it needs to be seen from various levels of analysis. At the macro
level, community relations is seen from organizational relations as a system that is related
and interdependent with other systems. Social, economic, political, legal and cultural aspects
will affect the existing relationship pattern. Therefore, organizational reputation is not only
seen in terms of how much profit is obtained, but also seen from the aspect of organizational
social responsibility in the form of corporate social responsibiity, community investment,
community involvement and community commitment.
From this meso level (planning based on established policies) is shown that community
relations activities will not be separated from the organization's understanding of the role of
public rela- tions. However, the position of authority and functions carried out in the
organization will affect the practice model that is carried out. While at the micro level
related to the individual actors, commu- nity relations will be influenced by the competence
of the actors which has implications for the roles played, whether managerial or technical
roles. Corporate social responsibility, which is part of community relations, will provide
long-term benefits, if placed as part of the organization's grand strategy. Therefore, criticism
of CSR will lead to an excuse where the company's business is ultimately blamed. For
example, there is a belief that CSR programs are often undertaken as an attempt to distract
the public from the ethical concerns of the company's core business.
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