The legal basis for the Company’s CSR programs refers to the prevailing rules and regulations as well as the MNC Group CSR Policy that governs the Company and its subsidiaries’ CSR. The CSR legal is as follows:
- 2007 Law Number 40 regarding Limited Liability Companies (UUPT), Chapter V, Article 74, paragraph 1, wherein a Company that carries on business activities in and / or related to natural resources is obliged to carry out Social and Environmental Responsibility;
- 2003 Manpower Law No. 13;
- 1999 Law Number 8 regarding Consumer Protection;
- 2012 Government Regulation No. 47 regarding Corporate Social and Environmental Responsibility.
- Bank Indonesia Regulation Number 16/1/PBI/2014 regarding Consumer Protection of Payment System Services.
- 2014 Bank Indonesia SE Number 16/16/DKSP regarding Consumer Protection Procedures for Payment System Services, Service Procedures and Customers Complaints Settlement.
RESPONSIBILITY RELATED TO THE ENVIRONMENT
Good management and environmental protection is a Company commitment and the Company has established the environment as one of the main pillars for its CSR activities.
For the Company, conducting CSR environmental activities is a non-negotiable obligation, based on the Company’s awareness that the Environment is the main source of life.
Even though the Company’s business activities have a relatively small direct impact on the environment, the Company has a strong commitment to engaging in environmental preservation efforts, both directly and indirectly.
The Company believes that the environment is one of the main factors in supporting its business continuity. Therefore, in every business activity, the Company ensures that it does not have a negative impact on the environment. The Company’s policy regarding environmental management and protection is manifested as a form of appeal, or Company Regulation to minimize the Company’s operational impact on the environment. In addition, the Company is also aware that the Company’s business activities can significantly influence environmental conservation activities.
The Company’s concern towards the environment is indicated by several activities:
- Through MNC Peduli, the Company with the District Office and Residents of Kebon Sirih clean the area to commemorate the National Waste Awareness Day (HSPN). At least 300 people from 10 community units in Kebon Sirih, Central Jakarta, as well as volunteers from MNC Group employees, participated in the event held on February 25, 2018. The area starts from Boplo Market at Jalan Srikaya, Kebon Sirih, Menteng, Central Jakarta.
- On July 26, 2018, MNC Peduli with Share Education and the Jakarta Administration carried out an activity called “Greening Pulogadung” by giving a lecture on greening in more than 133 schools, from elementary school to high school in Pulogadung, East Jakarta. The lecture is about reforestation and it also provides tree seeds and productive plants.
- The Company grants donation of Rp5,000,000 to support the cleaning-up in Sambisari, Surabaya in September 2018.
- The Company, through its subsidiaries in the financial services sector, has implemented digital-based applications in its business processes. For example, MNC Finance, MNC Life and MNC Sekuritas launched in 2018 a mobile application to reduce the dependence of paper.
The Company has benefited the implementation of CSR on the environment, including the efficiency in the use of energy and paper in the Company.
Meanwhile, the impact of the clean-up activities which was started from the Boplo Market and Sambisari in Surabaya and was carried out together with the surrounding community resulted in a habit to clean up among the communities living around those areas, which certainly influence health and the beauty of the areas, strengthen harmonious and relationship as well as the bond between the Company’s employees and surrounding communities.
RESPONSIBILITY RELATED TO EMPLOYMENT, HEALTH, AND WORK SAFETY
The Company complies with applicable laws and regulations, including those related to employment. The Company pays great attention and commitment to gender equality, employment opportunities, job training to improve employee professionalism, and has a reward system that is commensurate with the financial services industry, including to health and work safety. The Company’s employment management practices are guided by a Company Regulations, established by the Board of Directors and authorized by the Jakarta Office of Manpower and Transmigration through Endorsement Number: 439/PP/L/ VIII/D/2016 dated August 19, 2016.
The implementation of the Company's employment, health, and work safety policy are as following activities:
- Gender Equality and Job Opportunities
The Company provides equal opportunities for all people, both men and women, regardless of ethnicity, religion, race, class, gender, or physical condition to join the employee recruitment program. The appointment of prospective employees is based on the results of the selection, the results of evaluations on probation and employee orientation.
- Equality in the Education and Training Program
The Company provides training opportunities for employees that aim to meet the needs of skills and develop employee competencies. The types of training carried out in 2018 include basic company induction, basic skills training, certification training, functional training, leadership training, and socialization. Meanwhile, there were 8,125 participants who received the training with a total of 3,541 training hours.
The Company provides equality in providing rewards and benefits to employees in accordance with career paths, duties and responsibilities, and competencies. The Company strives to avoid an overly high remuneration gap.
- Implement a Balanced Score Card (BSC) system for the Company’s HR performance management, that has been useful in motivating employees to attain better work achievements/performances.
- Providing Umrah Package to the Holy Land for Muslim employees and Worship Package to the Holy Land for Christian employees who meet the criteria determined by the Company to motivate them to achieve better performance/productivity.
The Company realizes that the health protection and safety of manpower are crucial and must be the concern to every company. The Company’s employees’ health is one of the Company’s main concerns. For this reason, the Company provides health facilities, including:
- The Company provides polyclinic and doctors to give medical services to employees in the office area.
- The Company gradually registers employees and their families in a national health insurance program BPJS Kesehatan. This facility aims to provide protection and insurance coverage costs while undergoing a health examination or hospital treatment including guarantees for employees and wives of employees who undergo labor.
To reduce the risk of workplace accidents and handling emergencies, the Company provides the office with occupational safety facilities, including:
- The Company has equipped all of its operational offices with a variety of standard occupational safety devices such as Fire Extinguisher, Smoke Detector, Diesel Pump, and Emergency Ladder. The Company checks all of these facilities periodically to ensure that all facilities can work optimally when needed.
- The Company routinely conducts fire or natural disaster and evacuation simulations. Installation of evacuation signs also has been done at various points and assembly points. Inspection and maintenance of safety equipment such as fire extinguishers and alarms are also routinely carried out.
- The Company always disseminates information on the use of work equipment safely, for example: the use of standard electrical equipment from the Company is always turning off the computer and other electrical devices if not used.
RESPONSIBILITY RELATED TO SOCIAL AND COMMUNITY DEVELOPMENT
The Company is fully aware that its business continuity cannot be separated from its role and contribution to the surrounding communities. The Company feels that it has a responsibility for social development, both in improving the community economy and for development in other areas.
Policy The Company’s CSR social and community development programs focus on 5 (five) activity pillars, education, economy, public health, religion, and society. The five activity pillars follow the Company concept of being a Good Corporate Citizen. The Company is also keenly aware that it is part of the community, where the Company’s business growth cannot be separated from that of the community. To that end, the Company pays great attention to social development, manifested in a number of CSR socio-cultural activities.
As a manifestation of the Company’s contribution to social and community responsibility, several CSR activities which have been carried out by the Company together with the MNC Kapital business unit collaborating with MNC Peduli in 2018 are as follows:
- MNC Group’s social services provide assistance specifically to areas affected by disasters, such as earthquake victims in Lombok, NTT; tsunami in Palu & Donggala and tsunami in the Sunda Strait, Banten.
- The Company and it's business units have also conducted blood donor actions, Free Eye Examination and Distribution of Glasses, Providing Hearing Aid & Prosthetic Legs for the needy. In addition, the Company also held free General Medical Services, Cleft Surgery, Cataract & Pterygium Surgery and free Hernia Surgery in Gombong, Jember, Tasikmalaya, Purwakarta, Sukabumi, and Medan.
- In the field of education, the Company provides hundreds of educational books for children in the Koja region, North Jakarta and Bantargebang, Bekasi. In addition, the Company and it's business units actively hold media literacy, Financial literacy and capital markets and public lectures at several universities in Indonesia.
The education and training assistance provided by the Company to the surrounding community has had an impact including the increase of knowledge. Social and humanitarian assistance are also expected to ease the burdens of underprivileged communities and victims of natural disasters. The Company continues to strive to accommodate the needs or interests of the community based on their capability and those are done sincerely. Hence, close relations between the Company and the community can be established.
RESPONSIBILITY RELATED TO CONSUMERS
The Company believes that the consumer is a significant stakeholder, supporting business development now and in the future. The Company’s consumer responsibility is based on applicable legislation, including:
- Law of the Republic of Indonesia No. 7 of 1992 on Banking, as amended in Law of the Republic of Indonesia No. 10 of 1998;
- Law of the Republic of Indonesia No. 8 of 1999 on Consumer Protection;
- OJK Regulation No. 1/POJK.07/2013 on Consumer Protection for the Financial Services Sector.
In 2018, the Company has implemented several initiatives and activities for the consumers, including:
- Provide facilities that enable consumers and prospective consumers to understand and understand the Company’s products either through the Company’s website or integrated subsidiary website.
- Provide consumer complaints channels in all business units.
- Provide and disseminate information to consumers and prospective consumers on products in the capital market, which can be obtained through the Company.
- Hold meetings with consumers regularly to maintain customer loyalty.
- Provide media for consumers to obtain information on products and services of the Company, submit complaints, and provide advice through the call center 1-500-899.
- Implement digital-based applications in its business processes to provide convenience to the consumers when doing a financial transactions and reduce the dependence on the use of paper.
The implementation of CSR activities related to consumer responsibility that has been carried out by the Company throughout 2018 has had an impact on the non-financial side, including the increase in customer satisfaction and loyalty and the decrease in consumer complaints.
Through the digital application launched by the Company and its subsidiaries, the Company strives to provide consumers with the convenience to conduct financial transactions anywhere and anytime and reduce dependence on the use of paper.