The Company always places corporate social responsibility (CSR) commitments as an important element in all of its business and operational activities. The Company carries out CSR activities to develop long-term and beneficial relationships to all stakeholders. CSR activities carried out by the Company are categorized into 4, namely:
1. Responsibility toward environment;
2. Responsibility toward employment, occupational safety and health;
3. Responsibility toward social affairs and community; and
4. Responsibility toward customers.
Legal Basis for Implementing CSR
The legal basis of the Company to implement CSR is:
a. Law No. 40 of 2007 on Limited Liability Companies;
b. Law No. 8 of 1999 on Consumer Protection;
c. Law No. 13 of 2003 on Manpower; and
d. Government Regulation No. 47 of 2012 on Corporate Social Responsibility and Environment of Limited Liability Companies.
Responsibility toward Environment
As a responsible company, the Company is committed to preserving the environment. One of the efforts performed is the observance of environmental impacts associated with the use of the Company’s raw materials, such as methanol, urea, and other chemicals. The Company performs a monthly waste test through the Environment Agency (BLH) to avoid pollution of the surrounding environment.
Management of Raw Material and Production Waste
Prevention of contamination of land, water (rivers), or air is done through a safe working system. This is performed, among others, by recycling waste water, where it is stored in a large storage area, and then gradually spilled into another container, after undergoing filtration and cleaning. To obtain water quality that is suitable for use in production or for household purposes, water is recycled through a maintained water treatment system.
Environmental Certification
The company does not yet have certification in the environmental field. However, the Company has carried out operational activities based on applicable international standards.
Mechanism of Environmental Issue Complaints
The Company appreciates activities that create value to the environment, services to restore ecosystem problems, and efforts to utilize natural resources, such as land, water and air in a sustainable manner. In the event of complaints arising from operational activities, the Company openly accepts complaints of issues and follows up as optimally as possible through the Company’s e-mail.
Responsibility toward Employment, Occupational Safety and Health
Employment
The Company realizes that employees have an important role in supporting the achievement of company performance. Therefore, the Company performs social responsibility for employment, which among others is also manifested in the following policies:
1. Recruitment
At the recruitment stage, the Company opens equal employment opportunities for each prospective employee without distinguishing the background of identity, especially gender, and regardless of ethnicity, religion, race, political group or social level. In the recruitment process, the Company also prioritizes local (domestic) workforce, as a form of providing the largest possible opportunities for the people of Indonesia.
2. Education and Training Programs
To ensure availability of a competent workforce, the Company organizes employee education and competency development training programs that are tailored to the needs of the Company. However, for 2018, the Company did not hold any education and training programs for company HR.
3. Employee Remuneration
To realize employee welfare, the Company has a policy of employees at every position level receive adequate amounts of remuneration, facilities and benefits. Details of remuneration and facilities in the welfare program performed by the Company are reviewed based on education, expertise, skills, and experience possessed by employees, consisting of:
a. Salary;
b. Insurance;
c. Religious Holiday Allowances (THR);
d. Bonus.
4. Turnover Rate
The Company’s employees numbered 177 people in 2018, an increase from the previous year which amounted to 161 people. Change in number of employees is among other things related to the turnover rate, where 16 people or 9.04% of all employees in 2018 resigned from the Company.
5. Complaints of Employment Issues
Any employee of the Company may raise complaints on occupational issues to the Whistleblowing Handling Management Team (Tim Pengelola Pelaporan Pelanggaran/TPPP). Each complaint received will be handled professionally and responsibly according to the type and level of complaints raised.
Occupational Safety and Health
Implementation of social responsibility in respect to occupational safety and health (OSH) is based on the Company’s opinion of placing employees as its most important asset. The implementation of OSH activities also refers to Law No. 13 of 2003 on Manpower which is a reference of all labor policies in the Company to ensure compliance with applicable laws and minimize occurrence of violations of human rights in work relations.
The activities related to occupational safety and health within the Company include the following:
1. Providing facilities and infrastructure for occupational safety, both at main office and factories;
2. Periodic training on fire fighting once a year;
3. Revitalize fire extinguishers; and
4. Regular inspection of personal protective equipment (PPE) by the Company’s OSH team.
In mitigating and overcoming accidents in the Company’s workplace environment, a periodic evaluation of the program’s implementation is carried out to ensure effectiveness and reduce risk of workplace accidents. Information relating to the Company’s occupational accident rate in 2018 are as follows:
Responsibility toward Social Affairs and Community
The Company realizes that business activities and operations are not only intended to create added value for Shareholders, but must also be able to provide tangible benefits toward the social life of the community, because the community is an integral part of the Company’s business activities.
Through various social programs and activities, the Company constantly strives to maintain a harmonious relationship with the community, particularly within the proximity of the operational area. Social affairs programs and related activities are as follows:
1. Receive student visits for comparative studies;
2. Donation for concrete roads construction in Alley 3 of the Terboyo Industrial Area, Semarang;
3. Contributing building material for the construction of the Genuk Police Sector Office;
4. Providing donations for flood victims in the Genuk area, through the Genuk Police Sector; and
Responsibility toward Customers
The Company places customer satisfaction as a fundamental and important form of service. Customers are stakeholders who play a central role in ensuring business continuity, and are the main partners in future business development. Therefore, the Company constantly strives:
1. Information regarding the Company’s products and services are easily accessible by customers;
2. Production quality is excellent and meets standards desired by customers, including customers’ health and safety standards of the products produced; and
3. Customer complaints via email are handled appropriately by the Company