ICSA X Olahkarsa - Enhancing Social Performance for Business by Digitalization

Summary

This presentation discusses the role of digitalization in enhancing corporate social performance, focusing on sustainable business practices and community engagement. The speaker highlights the importance of Social License to Operate (SLO), ISO 26000 alignment, and various frameworks like the Sustainable Livelihood Approach (SLA) to foster positive societal impact. The use of innovative community development programs, corporate social innovation, and creating shared value is emphasized. The speaker introduces a digital platform designed to help businesses monitor and improve their social performance while balancing environmental, social, and governance (ESG) factors to drive both business growth and social good.

Takeaways

• 😀 Digitalization plays a crucial role in enhancing the social performance of companies, aligning with sustainable business practices.
• 😀 The presentation emphasizes the importance of the ISG (Environmental, Social, and Governance) framework in evaluating non-financial performance.
• 😀 Social performance can be measured by factors like the Social License to Operate (SLO), assessing how a company is perceived by its stakeholders and the local community.
• 😀 ISG focuses on managing internal and external stakeholder relations, ensuring positive outcomes for employees, customers, and suppliers.
• 😀 The alignment between ISG and ISO 26000 shows how businesses can integrate corporate social responsibility (CSR) into their operations.
• 😀 Social performance improvement is linked to the company's ability to engage with communities and create social impact through various initiatives.
• 😀 Community development programs should focus on engaging local populations and addressing their specific social and economic needs.
• 😀 Corporate Social Innovation (CSI) and Creating Shared Value (CSV) are key strategies for generating social and business value simultaneously.
• 😀 Community assets like human, natural, and social capital play a central role in shaping successful community development strategies.
• 😀 The presentation suggests using tools like social return on investment (SROI) to measure the impact of sustainability interventions.
• 😀 Digital platforms can be used to monitor and manage corporate social performance, offering real-time tracking of social initiatives and stakeholder engagement.

Q & A

What is the primary focus of the presentation?

The primary focus of the presentation is to explore how digitalization can enhance social performance within companies, particularly through the integration of sustainability practices and the ISG (Environmental, Social, Governance) framework.

What is Olahkarsa, and what role does it play in sustainability management?

Olahkarsa is a corporate sustainability management organization that provides consulting services, sustainability research, and ISG digital platforms. It has worked with over 100 companies on more than 300 projects across Indonesia, focusing on sustainability solutions.

What does ISG stand for, and why is it important for companies?

ISG stands for Environmental, Social, and Governance. It is crucial because it provides a framework for assessing non-financial performance, allowing companies to manage risks, identify opportunities, and align their operations with sustainability goals.

How does ISG align with ISO 26000 in terms of social responsibility?

ISG's 'Social' aspect aligns with ISO 26000, which offers guidelines for social responsibility. While ISG provides quantitative data, ISO 26000 offers qualitative guidance, allowing companies to implement CSR initiatives based on stakeholder engagement and community welfare.

What is the concept of 'Social License to Operate' (SLO), and why is it important?

Social License to Operate (SLO) is a measure of the acceptance and support a company has from the community and stakeholders. It is important because it helps companies understand their legitimacy and community trust, which are essential for the long-term sustainability of their operations.

What are the key components of community development interventions?

Community development interventions often include stakeholder engagement, education, job creation, skill development, and empowerment. The goal is to create a positive and sustainable impact on the community, with a focus on improving their quality of life.

What are the different types of community assets mentioned in the presentation?

The presentation mentions several types of community assets: human capital, natural capital, financial capital, physical capital, and social capital. These assets play a vital role in community development, and understanding them helps companies create targeted interventions.

What role does Corporate Social Innovation (CSI) play in social performance?

Corporate Social Innovation (CSI) helps companies address social and environmental challenges while creating business opportunities. By integrating sustainability into business models, companies can create shared value, benefiting both society and the company itself, as seen in the example of exchanging waste for mobile credits.

How can companies monitor and measure their social impact effectively?

Companies can use digital tools and platforms to monitor and manage their social performance. Tools like stakeholder mapping, project management systems, and real-time impact dashboards allow companies to track their initiatives and measure the outcomes of their community-focused programs.

What is the significance of using digital tools in enhancing corporate social performance?

Digital tools are essential for effectively managing and optimizing corporate social performance. They provide real-time data on stakeholder engagement, community impact, and program effectiveness, allowing companies to make informed decisions and improve their sustainability efforts.