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Community Relations / CSR

Dian Anggraeni, M.Si Pengantar Public Relations, 2012

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Community Relations

Community relations, as a public relations function, Community relations, as a public relations function, is an institution’s planned, active, and continuing is an institution’s planned, active, and continuing participation within a community to maintain and participation within a community to maintain and enhance its environment to the benefit of both enhance its environment to the benefit of both institution and the community. institution and the community.

(Center and Jackson, 2002)(Center and Jackson, 2002)

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Understanding the Community Relations

1. Community relations is the function that evaluates public attitudes, identities the mission of an organization with the public interest and executes a program of action to earn public understanding and acceptance.

2. Community relations is usually limited to the local area. • Business organizations give attention to their community

relations for good reason

3. Organizations can exist and make a profit only as long as the public allows them to exist.

4. Benefits from good community relations do not come automatically.

5.5. To make the company as a good corporate citizenTo make the company as a good corporate citizen

Dian Anggraeni, M.SiPengantar PR 2012

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The Role of PR

Nine areas of an organization’s community relationships:Nine areas of an organization’s community relationships:

1.1. Issuing news of interest to the community and providing top Issuing news of interest to the community and providing top official of the organization with the information on the status of official of the organization with the information on the status of community relations.community relations.

2.2. Representing the organization in all sorts of volunteer activities, Representing the organization in all sorts of volunteer activities, including fund drives and getting employees to do likewise.including fund drives and getting employees to do likewise.

3.3. Managing the contribution function – giving donation if a Managing the contribution function – giving donation if a corporation, raising funds if a nonprofit organizationcorporation, raising funds if a nonprofit organization

4.4. Counseling management on contribution of employees as volunteer Counseling management on contribution of employees as volunteer workers or board members, arranging for use of facilities and workers or board members, arranging for use of facilities and equipment by community groups.equipment by community groups.

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5.5. Functioning as the organization’s intermediary with local Functioning as the organization’s intermediary with local government, civic, educational and ad hoc groups concerned with government, civic, educational and ad hoc groups concerned with reform, social problems and celebrationsreform, social problems and celebrations

6. Planning and helping to implement special events such as ground 6. Planning and helping to implement special events such as ground breaking or dedication of new facilities change in location, breaking or dedication of new facilities change in location, anniversaries, reunions, convertion, or exhibitionsanniversaries, reunions, convertion, or exhibitions

7. Preparing advertising or position papers aimed at residents or 7. Preparing advertising or position papers aimed at residents or local government as needed or desirablelocal government as needed or desirable

8. Preparing publications for distributing to resident groups8. Preparing publications for distributing to resident groups

9. Planning and conducting open houses or tours as needed or 9. Planning and conducting open houses or tours as needed or desirabledesirable

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ComRel Can Be The Core of PR Programming?ComRel Can Be The Core of PR Programming?

Community Relations can be the the core of public Community Relations can be the the core of public relations programming because it sets the tone of relations programming because it sets the tone of what an organization stand for – non in words what an organization stand for – non in words (rhetoric) but in actions (behavior)(rhetoric) but in actions (behavior)

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Three strategic levels need to be planned:Three strategic levels need to be planned:

1.1. Defensive: guarding against negative acts, or act of Defensive: guarding against negative acts, or act of missionmission

2.2. Proactive: being a leader in positive acts that appeal to Proactive: being a leader in positive acts that appeal to key publicskey publics

3.3. Maintenance: finding ways to retain relationships with Maintenance: finding ways to retain relationships with publics not currently key but still able to influence a publics not currently key but still able to influence a company’s reputation by forthright expression of their company’s reputation by forthright expression of their perception of it.perception of it.

Dian Anggraeni, M.SiPR Kontemporer 2011

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Types of Community RelationsTypes of Community Relations

I. Standard community relations to create awareness Standard community relations to create awareness and let facilities to be used:and let facilities to be used:

a. a. Membership network, assigning ‘official’ Membership network, assigning ‘official’ representatives to all community groups.representatives to all community groups.

b. Speakers bureau, placing talks to key groups on b. Speakers bureau, placing talks to key groups on topics vital to the organization.topics vital to the organization.

C. Make facilities availableC. Make facilities available

d. Open houses, visitations, toursd. Open houses, visitations, tours

e. Programs around holidayse. Programs around holidays

f. Service on boards of directorsf. Service on boards of directors

g. Take part in public events and back ‘must-g. Take part in public events and back ‘must-support’ support’

causescauses

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II. Placing people throughout its planning and decision-making II. Placing people throughout its planning and decision-making

networks:networks:

a. Ambassador or constituency relations programsa. Ambassador or constituency relations programs

b. Hold regular opinion leader briefings or ideas exchanges.b. Hold regular opinion leader briefings or ideas exchanges.

c. Set up local community relations advisory boardsc. Set up local community relations advisory boards

d. Employee volunteer programsd. Employee volunteer programs

e. Community research, jointly with a college perhapse. Community research, jointly with a college perhaps

f. Employee volunteer programsf. Employee volunteer programs

g. Social projects that tackle the real community needs a g. Social projects that tackle the real community needs a

seen by your key publicsseen by your key publics

h. Make expertise availableh. Make expertise available

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Successful Community RelationsSuccessful Community Relations

Successful community relations are planned, organizedSuccessful community relations are planned, organized

and systematized. In community programs there and systematized. In community programs there shouldshould

be five considerations:be five considerations:

1.1. TargetingTargeting• Which groups in the community must be targetedWhich groups in the community must be targeted• In order to motivate the behaviors neededIn order to motivate the behaviors needed• What specific activities will achieve this motivation?What specific activities will achieve this motivation?• What information must be gathered and assessed before What information must be gathered and assessed before

startingstarting

2.2. Participation or ownParticipation or own

3.3. Here versus thereHere versus there

4.4. Official versus employee activitiesOfficial versus employee activities

5.5. Reaching opinion leadersReaching opinion leaders

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Corporate Social ResponsibilityCorporate Social Responsibility

Corporate Social Responsibility is a commitment to Improve Corporate Social Responsibility is a commitment to Improve

Community well-being through discretionary business practices and Community well-being through discretionary business practices and

contributions of corporate resources. ( Kotler and Lee, 2005)contributions of corporate resources. ( Kotler and Lee, 2005)

CSR is major efforts under corporate social initiatives, are major CSR is major efforts under corporate social initiatives, are major

activities undertaken a corporation to support social causes and to activities undertaken a corporation to support social causes and to

fulfill commitment to corporate social responsibility.fulfill commitment to corporate social responsibility.

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Undang-Undang CSR UU No. 40/2007 tentang Perseoran TerbatasUU No. 40/2007 tentang Perseoran Terbatas

Pasal 74:Pasal 74:

1. Perseroan yang menjalankan kegiatam usahanya di bidang 1. Perseroan yang menjalankan kegiatam usahanya di bidang

dan/atau berkaitan dengan sumber daya alam wajib dan/atau berkaitan dengan sumber daya alam wajib

melaksanakan tanggung jawab sosial dan lingkungan.melaksanakan tanggung jawab sosial dan lingkungan.

2.Tanggung jawab sosial dan lingkungan sebagaimana 2.Tanggung jawab sosial dan lingkungan sebagaimana

dimaksud pada ayat (1) merupakan kewajiban Perseroan dimaksud pada ayat (1) merupakan kewajiban Perseroan

yang dianggarkan dan diperhitungkan sebagai biaya yang dianggarkan dan diperhitungkan sebagai biaya

Perseroan yang pelaksanaannnya dilakukan dengan Perseroan yang pelaksanaannnya dilakukan dengan

memperhatikan kepatuhan dan kewajaran.memperhatikan kepatuhan dan kewajaran.

3. Perseroan yang tidak melakukan kewajiban sebagaimana 3. Perseroan yang tidak melakukan kewajiban sebagaimana

dimaksud pada ayat (1) dikenai sanksi sesuai dengan dimaksud pada ayat (1) dikenai sanksi sesuai dengan

ketentuan perundang-undangan.ketentuan perundang-undangan.

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UU No. 25/2007 tentang Penanaman Modal asingUU No. 25/2007 tentang Penanaman Modal asing

Pasal 15:Pasal 15:

Setiap penanam modal berkewajiban melaksanakan tanggung Setiap penanam modal berkewajiban melaksanakan tanggung jawab sosial perusahaan.jawab sosial perusahaan.

Pasal 16:Pasal 16:

Setiap penanam modal bertanggung jawab menjaga Setiap penanam modal bertanggung jawab menjaga kelestarian lingkungan hidup.kelestarian lingkungan hidup.

UU No. 19/2003 tentang BUMNUU No. 19/2003 tentang BUMN

Pasal 88 ayat (1)Pasal 88 ayat (1)

“…“…BUMN dapat menyisihkan sebagian laba bersihnya untuk BUMN dapat menyisihkan sebagian laba bersihnya untuk keperluan pembinaan usaha kecil/koperasi serta pembinaan keperluan pembinaan usaha kecil/koperasi serta pembinaan masyarakat sekitar BUMN.”masyarakat sekitar BUMN.”

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What Are The Trends?What Are The Trends?

• Increased givingIncreased giving• Increased reportingIncreased reporting• Establishment of a corporate social norm to do goodEstablishment of a corporate social norm to do good• A shift from obligation to strategyA shift from obligation to strategy• The traditional approach: fulfilling an obligationThe traditional approach: fulfilling an obligation

The new approach: supporting corporate objective as The new approach: supporting corporate objective as wellwell

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Why Do Good?

Corporate Social Initiatives has similar potential benefits. It Corporate Social Initiatives has similar potential benefits. It appears that such participation looks good to potential appears that such participation looks good to potential consumers, investors, financial analysts, business consumers, investors, financial analysts, business colleagues, in the annual report, in the news and maybe colleagues, in the annual report, in the news and maybe even in the Congress. even in the Congress.

The bottom line benefits including:The bottom line benefits including:– Increased sales and market shareIncreased sales and market share

– Strengthened brand positioningStrengthened brand positioning

– Enhanced corporate image and cloutEnhanced corporate image and clout

– Increased ability to attract, motivate, and retain employeesIncreased ability to attract, motivate, and retain employees

– Decreased operating costsDecreased operating costs

– Increased appeal to investors and financial analysts.Increased appeal to investors and financial analysts.

2 3 5 6 7

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The Major Challenges To Doing GoodThe Major Challenges To Doing Good

• Choosing social issueChoosing social issue

• Selecting an initiative to address the issueSelecting an initiative to address the issue

• Developing and implementing program plansDeveloping and implementing program plans

• EvaluationEvaluation

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Types of CSITypes of CSI

1.1. Cause Promotions: Cause Promotions:

Supporting social causes through promotional Supporting social causes through promotional sponsorshipssponsorships

Example: Example:

McDonald sponsored the olympic Youth Camp Program McDonald sponsored the olympic Youth Camp Program held in 200 in Sydney, Australiaheld in 200 in Sydney, Australia

DELL sponsors efforts to collect used computers for DELL sponsors efforts to collect used computers for donations to local nonprofits and public agenciesdonations to local nonprofits and public agencies

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Types of CSI

2.2. Cause Related MarketingCause Related Marketing

Donating a percentage of revenue to a specific cause Donating a percentage of revenue to a specific cause based on product sales.based on product sales.

Examples: Examples:

McDonald earmarked $1 for children’s causes from the McDonald earmarked $1 for children’s causes from the sale of Big Macs and other items on World Children’s Day, sale of Big Macs and other items on World Children’s Day, November 20, 2002November 20, 2002

DELL offers 10 percent off selected new products when up DELL offers 10 percent off selected new products when up to three used products are recycled onlineto three used products are recycled online

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Types of CSITypes of CSI

3. 3. Corporate Social MarketingCorporate Social Marketing

Supporting behavior change campaignSupporting behavior change campaign

Examples: Examples:

McD promotes timely childhood immunizationsMcD promotes timely childhood immunizations

DELL offers free and convenient return of used DELL offers free and convenient return of used printers for recycling or reuseprinters for recycling or reuse

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Types of CSITypes of CSI

4. 4. Corporate PhilanthrophyCorporate Philanthrophy

Making direct contribution to a charity or cause Making direct contribution to a charity or cause

Examples: Examples:

Ronald McD House offers places to stay for families with Ronald McD House offers places to stay for families with seriously ill childrenseriously ill children

Through Dell Direct giving program with employees, Through Dell Direct giving program with employees, employee donations are made to earth share, which employee donations are made to earth share, which supports multiple environmental projectssupports multiple environmental projects

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Types of CSI

5.5. Community volunteeringCommunity volunteering

Providing volunteer services in the community Providing volunteer services in the community

Examples: Examples:

McD providing meals for professionals and volunteers at McD providing meals for professionals and volunteers at September 11 disaster sitesSeptember 11 disaster sites

DELL employees around the globe participate in Global DELL employees around the globe participate in Global Community Involvement Week each September including Community Involvement Week each September including activities such as park cleanup.activities such as park cleanup.

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Types of CSI6.6. Socially Responsible Business PracticesSocially Responsible Business Practices

Adopting and conducting discretionary business Adopting and conducting discretionary business practices and investments that support social practices and investments that support social causes causes

Examples: Examples:

Mc D changed to recycled content packaging and Mc D changed to recycled content packaging and reduced packaging materialsreduced packaging materials

DELL creates product design program with specific DELL creates product design program with specific environmental guidelines, policies and goalsenvironmental guidelines, policies and goals

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