THE IMPLEMENTATION OF COMMUNITY DEVELOPMENT POLICY IN INDUSTRY AND INSTITUTION IN WEST JAVA Dr. Suwandi Sumartias, Dr. Evi Novianti, Kokom Komariah, M.Si., Aat Ruchiat Nugraha, M.Si. Lecturer of Department of Public Relations, Faculty of Communication Science Padjadjaran University, Bandung, Indonesia
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[email protected] Abstract This research entitled “The implementation of Community Development policy at Industrial enterprise and Institutions in West Java inquired by employing quantitative technique of path analysis”. The purpose of this research is to observe the impact of community development program by institutions and industrial enterprises on public participation rate towards development. Research method implemented for this research is explanatory survey research method which can be described as a research illustrating an event or situation. The theory being applied is diffusion innovation theory. The result of the research shows development of Community development program/CSR. There is a significant impact of 25.83% of program easily being understoodby public and there is a probability of 13.25% that the program would be carried out through public participation Keywords: Community Development, Diffusion Innovation, Participation
from industries or institutions, has already make an effort to include all components of private sectors, government, and society in increasing development index materially or formally in Indonesia. This has been a synergic and continuous effort by children of the nation, to create a product that would be beneficial for all. Several studies on community development have been focusing on the society understanding about community development program. Those studies provide a source of community development implementation for business society and policyholder, which also provide the continuation of new initiatives for better life and environment. The concept of community development has transformed itself into corporate social responsibility, which become part of new business paradigm in twenty first century focusing on the implementation of social and environmental ethics. According to Schmidt and Rynes (2003): Social and financial performance of a company or institution are both positively connected to each other. This means that in order to become an accomplished and successful company, they need to observe the level of communication that
Foreword The chain of events of tragedies in environment disasters, social and society, happened in the last few years, have change significantly the level of human rights violation, poverty, and marginalization of vulnerable group of society such as traditional community, labor, poor urban population, children and women. Indonesia, which is part of countries whom ratified the free trade concept, has contributed to the weakening of value in environmental balance against industry, socio-humanities, and environmental aspect that as a whole providing human beings their life. One of the interpretations of the ratification can be described as the power of neoliberal, which still needs to hold on to their capitalist hegemony through the implementation of policyover the community development program. Thecommitment of the community development program as one of the public relations function is to establish company’s image, and reputation or company’s interest to increase their material profit. Community development as a part of business strategy of corporate social responsibility
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connect the company and its surroundings, which could be in a form of partnership or training program. The positive image of the development transpired in Indonesia receives a good appreciation from many of the world economic forums. The positive outcomes formed in the existence of community development that rapidly developed. The more powerful community development program policy can be seen in some of the mass media’s advertorial article or advertisement about some companies’ program. ElvinaroArdianto (2011) suggests in his research about the report of community development/CSR in mass media that (1) CSR advertisements, textually and contextually are positive (2) CSR advertisements text production influenced by the editor of the mass media and the editor of the advertisements (3) CSR advertisements’ text consumed by readers can improve the level of living standard or welfare (4) CSR advertisement in socio-cultural context is not a charity but as a sustainability program. West Java as a region that has some institutions and industrial areas comprehensively becomes an important sector for the national development in the last few years. This policy implemented by the central government urge the region in the attempt to push and maintain the level of development acceleration in society empowerment through setting up some of the areas to become centre of industry, trade, business, or government central. The image of area’s concept design is the direct impact of national scaled development and has oriented itself towards globalization era’s concept. Despite the empirically fast progress of development, the program still has some problems that the society will encounter, especially in West Java community. New problem emerged as a logical effect as a new area of development (governmental, educational, trade and industrial) such as: social change, economy, environment, culture and communication. The change on one side brings the positive consequences but on the other side gives unavoidable negative consequences. The negative side (according to pre-survey) including: the change of interaction pattern and drastic change of association, social envy, lifestyle, the rise of criminal rate, ownership pattern and livelihood, environment contamination and so on. Some of the companies in West Java area such as PT. PLN – West Java and Banten
Distribution, PT. PupukKujang and PT. Indocement Tunggal Perkasa have done some society empowerment through community development/CSR programs. These programs werecarried outas a company responsibility to improve the communities surrounding the company by enhancing their competitive edge and independently can improve their own welfare. The description as explained above created a need of having a further comprehensive research about the influence of community development/CSR program on industry and institution towards public participation in development of West Java through communication perspective especially social and development communication. Problem Formulation Based on the description in foreword section, the formula of the problem of research would be: “How large is the amount of influence of the Community Development/CSR program produced by industry and institution towards the public participation in the development in West Java area?” Research Purpose Specifically this research purpose is to examine and analyze the influence of: 1. Relative advantage factor in community development towards level of public participation in the development. 2. Community development program suitability factor towards level of public participation in the development. 3. Community development program effortless factor towards level of public participation in the development. 4. Community development program application chance factor towards level of public participation in the development. 5. Community development program chance of observation factor towards level of public participation in the development. Literature Review General concept of Community development/Corporate Social Responsibility (CSR) The trend of companies nowadays has a direct connection to the improvement of economic sector. Companies from many sectors are flourishing and undeniably will bring benefit and
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lossfor the public at the same time. It is important to put one in mind that a company has to be sensitive on the implication being generated by CSR. One of the negative impacts from the industry is by causing the excessive exploitation of natural resources without considering the effect whether socially or environmentally. From the negative perspective of a company activity, it is considered unethical to have public receive the loss while the company received a large profit. The problem caused by irresponsible company’s activities needs to be settled as company’s social responsibility. This has to be done in order to make public or stakeholder instead of not receiving any deficit but gain some benefit from the company presence. Company’s social responsibility is one of the company’s responsibilities to its stakeholder. Jones (1995) classified the stakeholder into two categories: 1. Inside stakeholder, consist of people who have a purpose and interest towards company’s resources and positioned inside the company’s organization. Inside stakeholders are shareholders, managers and employees. 2. Outside stakeholder, consist of people or constituencies, which does not include company’s owner, company’s leader or employee, but have interest on the company andaffected by company’s decision and act. Outside stakeholders are customers, suppliers, government, local communities, and general public. (Solihin, 2008:2)
4.
shows moral reflection done by business practitioners whether individually or organizationally which is done in order to evaluate an issue representing values in the society. Through that value, whether individually or organizationally, business practitioners will give a verdict whether things are done correctly or wrongly, do justice or not, and can be utilized or not. Discretionary responsibilities. Public expects that the existence of the company can give them benefit. Public expectations are fulfilled by philanthropic program (Solihin, 2008:21-22).
The explanation reveals company’s position as part of the society. Every kind of activity being done should always consider the value in society. All companies should: (1) give benefit and profit to their stakeholders (2) do their business in accordance to rules and laws (3) do their business ethically sound (4) give benefits to the public. Every component is the key components that should be fulfilled by a company. Social responsibility of a company nowadays is better known as corporate social responsibility (CSR). Some of the definitions are: CSR is a commitment to improve community well being through discretionary business practices and contributions of corporate resources (Kotler and Lee, 2005:3). Kotler and Lee emphasizes on the discretionary component, which can be described as how a company discretion in implementing business practice for the welfare of society (Suyono, 2010:24) CSR is a responsibility of an organization aiming to arrange the effects of its decisions and activities to society and environment manifested in a transparent and ethical way that parallel with sustainable development and public welfare; considering the hope of all the parties concerned; in line with the applied law and international norm; and also integrated with the organization as a whole (Rachman, Efendi and Wicaksana, 2011:17). CSR program is closely connected to the sustainable development. Sustainable development is a current global issue that needs to be comprehends and implemented. The definition of
Carrol (1979) explains about four categories of company’s social responsibility components: 1. Economic responsibilities. The main social responsibility of a company is economic responsibilities because of its economic activity that creates a profitable products and services for general public. 2. Legal responsibilities. Public hopes that business is running while abiding the laws and rules which essentially is created by public themselves through legislatives. For example: the company paying taxes dutifully, compliance to labor laws. 3. Ethical responsibilities. Public expects that a company running its business ethically. According to Epstein (1989) business ethics
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sustainable development as explained in Brundtland Report from United Nation (1987) in(Rachman, Efendi and Wicaksana, 2011: 11) is a development process (land, city, public and so on) which principal is to fulfill current needs without sacrificing the fulfillment of the future generations. Sustainable development covers policies for economic development, social development, and environment preservation. John Elkington in (Rachman, Efendi and Wicaksana, 2011:11) outlines the triple bottom line as the pillar for the
development: people, planet and profit. Based on that it is imperative that a company should have: 1. Responsibility to preserve the environment capability to support life for the next generation (planet). 2. Responsibility to its shareholders (profit). 3. A useful existence for the stakeholders and public (people) 4. Sustainable development that being supported by a balanced commitment between economy, social and environment (sustainability development).
Figure 1. The interconnectivity of triple bottom lines
Triple bottom line is a
Corporate Forum for Community Development (CFCD).
sustainable development concept which, explicitly connecting the objective dimension and responsibility whether to its shareholder, stakeholder and planet. Profit concept is one of the responsibilities that needed to be achieved by companies, an economic mainstream which becomes a philosophical foundation for the company’s operational. Other than the profit responsibility, companies need to address their responsibilities towards other aspects such as people and planet to reach the goal of sustainable development. From all the definition and description of CSR above it can be concluded that CSR is an action or real concept of company’s responsibilities to shareholders, stakeholders and planet. At present CSR is no longer regarded only as image enhancement activities but it can be the tool for developing performance for a company. In Indonesia, private and government owned companies have join forces into a forum called
The Conception of Public Participation According to Prof. Dr. Santoso S. Hamidjojo participation is the contribution given by society, individually or in a group from the perspective of the activities being done as ideas participation, strength participation, wealth participation, skill participation and social participation (Priyatna, 1996:19-20). Meanwhile Notoatmodjo suggests that in participation, every member of the society ought to have a contribution. That contribution is not limited into fund and financial matters only but can be given in a form of power, and idea. It can be said that should be developed into 4 M: Manpower, Money, Material (other things such as wood, bamboo, rice stones and so on) and Mind. Ach. WazirWs., et. all (1999:29) conveys that participation can be described as the involvement of someone consciously entered the social interaction in a particular setting. With that definition, someone can participate if they are in
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the group or feel connected to the group, sharing along the value, tradition, feeling, loyalty, obedience and mutual responsibility. Isbandi (2007:27) describes that public participation is identifying the problem and potency transpired in society, decision making in the alternative solution on handling the problem, the act of solving the problem, and public involvement in assessing the change.
mass communication application closely connected to innovation adoption process (new things/values). The condition of social change and technology in the society has created a need to switch from the old method into the new method, all of which connected to research based and public policy of mass communication applied in society. Research Method Research design used in this research is quantitative. Broad data aspect being more important which made data or research result can be considered as representation of the whole population. Research method used is explanatory survey, a survey explaining a phenomenon or situation.
Diffusion-Innovation Theory The model of diffusion-innovation theory has been used in the research approach of development communication, especially in developing world such as Indonesia. Everett M. Rogers conveys that diffusion is a process where innovation being communicated through a particular channel in a certain amount of time from the member of a social system. Diffusion is a distinctive communication typeconnected to the messages dissemination as a new idea. Communication on the other hand is described as a process where people create and exchange information to reach mutual understanding. The message contains newness and giving a special characteristic to the diffusion related to uncertainty. Degree of uncertainty in people’s mind can be reduced by retrieving information from the source. The main elements of diffusion are (1) innovation (2) communication through a particular channel (3) in certain amount of time (4) between members of social system. Innovation is an idea, work outcome or object, which considered being determinedin some adoption levels: (1) relative advantage (2) compatibility (3) complexity (4) trialbility (5) observability. Relative advantage is a level where innovation looks better than other replacement idea. Degree of advantage can be measured economically, but other factors such as social achievement, comfort and satisfaction are also important elements for this. Compatibility is a level where innovation consistently settled with applied value, experience and the needs for them to adapt. Complexity is a level where innovation is hard to understand and use. Trialability is a level where innovation being experimented in some limited ground. Observability is a level where innovation can be seen from other perspectives. Generally
Research Hypothesis Main hypothesis of this research is that there is a significant and positive influence from the community development/CSR program by industries and institutions towards public participation in the development. For this purpose, hypothesis that being tested are: H0: There is no significant and positive influence from the community development/CSR program by industries and institutions towards public participation in the development. H1: There are significant and positive influences from the community development/CSR program by industries and institutions towards public participation in the development. Result and Discussion Regression Statistical Analysis Result of Research Data Analysis of influence of factors on CSR/community development policy implementation in institutions and industries in West Java To explore the dominant factors influence the CSR/community development policy implementationin institutions and industries in West Java, path analysis used with the models as follow:
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In using the path analysis, the above structure shows hypothesis between the influences of CSR/community development being done (X), towards public participation in the development (Y). Latency variable will be revealed in.
industry in West Java towards public participation in the development. The next thing to find out about the influence of the implementation of CSR/community development program in institution and industry in West Java towards public participation in the development is being facilitated by Lisrel 9.1 program. The result is as follows:
Analysis of dominant factors in the implementation of CSR/community development program in institution and
Table t examination of dominant factors in the implementation of CSR/community development program in institution and industry in West Java towards public participation in the development Variable
Path Correlation Influence coefficient Error Std. (%) (ρ)
Relative advantage (X1)→ Participation(Y)
-0,04
Compatibility (X2)→ Participation(Y)
0,17
Complexity (X3)→ Participation (Y)
0,41
Trialability (X4)→ Participation (Y)
0,25
0,31
0,52
0,63
0,53
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t value
T table
Conclusion
1,24
0,07
-0,42
1,93
No Influence
8,84
0,07
1,61
1,93
No Influence
25,83
0,07
3,62
1,93
Positive influence
13,25
0,07
2,37
1,93
Positive influence
Observability (X5)→ Participation(Y)
0,04
0,36
1,44
0,07
0,41
1,93
No influence
Source: Data Process Result, 2013
towards public participation. Path coefficient value gained is 0.25. The amount of influence of triability program towards public participation is 13.25%. The variable of observability program towards public participation has t value of 0.41, which is smaller than t table (1.93). It can be concluded that there is no significant influence on observability program in public participation. The amount of influence of observability program towards public participation is 1.44%. Out of the 5 factors, the dominant factor towards public participation to the development is the complexity of the program.
Examination criteria: If ttable≤ tvalue ≤ ttable ,so H0 acceptedand H1rejected Iftvalue>ttable or–tvalue< – ttable, so H0rejectedand H1accepted ttablevalue can be seen in the level of signification 0.05 wheredf=sample numbervariable number = 78-2=76. ttablein df 76 = 1.93 while tvalue from the table above where it can be found that the value of tvalue influence on relative advantage of public participation is -0.42, which means ttable(1.93)
Conclusion and Suggestions Conclusion for this research about community development/CSR policy will be as follows: 1. There is a significant influence of 25.83% for the complexity of the community development/CSR program towards public participation to the development. 2. There is a significant influence of 13.25% for the trialability of the community development/CSR program towards public participation to the development. Suggestions coming out of this research would be: 1. Based on the examination of the relative influence from the community development program/CSR towards public participation to the development, which shows that there is no significant influence, it is best that every program being done should have a clear and definite purpose.
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2.
3.
Based on the examination of the compatability of the community development program/CSR towards public participation to the development, which shows that there is no significant influence, it is suggested that the program should adapt to the education background of the public. Based on the examination of the observability of the community development program/CSR towards public participation to the development, which shows that there is no significant influence, suggestion can be made that every community development program/CSR should be based on the public aspiration and capabilities.
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