CSR and Social Advertising / Unethical

Question 1
Explain about theory why company have program of CSR and purpose of CSR
Corporate social responsibility ("CSR" for short, and also called corporate
conscience, citizenship, social performance, or sustainable responsible business) is a form of
corporate self-regulation integrated into a business model . CSR policy functions as a builtin, self-regulating mechanism whereby business monitors and ensures its active compliance
with the spirit of the law, ethical standards, and international norms .
Theorys of CSR have expanded to start 1950an, and during two decade do not experience
of change meaning till decade 1990an.

Picture 1
Theories of CSR which start to appear in year 1950an have experienced of friction.
What most obvious is change that happened in year 1990an (see picture). Of analysis storey;
level, can be expressed that nature of macro social have shifted to become organizational;
orient theoretic which at first more ethical having the character of and obligation have come
to managerial; ethical orientation which at first explicit have come to implicit, and relation
between performance of CSR and monetary performance which at first apart or dont be
expostulated at all later; then turn into hand in glove relation.
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Year 1950an till 1960an really predominated by idea of Howard Bowen, so that
theme of is social responsibility of businessmen (or businessmen-yang of responsibilities
social become book title of Bowen rising 1953).
Decade 1970an marked with concept appearance which up to now still very often
cited, that is interest self enlightened. This concept is borne by Wallich and of Mcgowan
( writing last article in potpourri of A New Rationale Corporate Social Policy for, 1970)
coping to provide reconciliation between social and economic target of company. They
emphatically express that CSR will continue to become foreign concept if fail to show
consistent himself with importance of owner of capital. Since then happened change of
radical of researches of CSR which at first more is having the character of normative
become positively, especially bearing between performance of CSR and performance of
financial company.
Decade 1980an marked with the boisterous of social performance theme of company
(performance social corporate, CSP). Its the core important article of seminal Archie
Carroll, A Three-dimensional Conceptual Model Corporate Performance of (1979). Very
important matter in this decade is to expanding confidence it that relation between
performance of social performance and company of financial is not have the character of off
trade. Both can together totalize business" that of responsibility social consist of economic
responsibility, legal, ethical, and discretionary.
Next decade, 1990an, marked with biggest mystery avalanche in management: why
certain companies consistently have other compared to better performance. Its answer is on
strategic management theme, which is among others carried by Peter Drucker. One of the
strategic management variant is theory of importance which is populated by Edward
Freeman. He is postulating that more and more importance gratified by company, hence the
companies have ever greater possibility for the success of. The postulate very useful for the
growth of CSR hereinafter, so that studies of CSR become progressively have the character
of positive and managerial. Practical application also progressively pushed by figures like
Philip Kotler, Michael Porter and of Stuart Hart.
In this time have many companies applying program- social responsibility program.
Start from company which perforce to run social responsibility program because existing
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regulation, until really serious company in running social responsibility program by

founding special institution for the program of social responsibility program of them.
Pursuant to concept of Triple Bottom Lino ( John Elkington, 1997) or three primary factor
operate for in its bearing with human being and environment ( People, Profit, Planet and),
important social responsibility program to be applied by company because advantage of
company depend on environment and society.
Company cannot off hand disregard role of stakeholders (consumer, worker, society,
governmental, and business partner) and shareholders with only pursuing maximize profit.
If companies disregard balance of Triple Bottom Line hence will happened trouble at human
being and environment around company of which can generate reaction of like society
demonstration about or damage of environment about effect of company activity
disregarding the balance. Become, there is or do not a regulation obliging a company
running social responsibility program or don't in fact will not too is bringing of change
because if company do not balance between people, profit, and planet hence sooner or later
surely ill arise reaction of from harmed side to company.
Company which have run social responsibility program even also there is applying
the social responsibility program because reason to anticipate to deduction of environment
and society around company. Still seldom there is company making social responsibility
program as part of strategic plan of company. They do not see fact in field that company
making to make social responsibility program as part of strategic plan of company have
higher level image corporate so that can affect at high loyalties both for society which have
profiting by the company also to consumer which often rely on image corporate in
consuming what them buy.
Michael Porter, Clayton Christensen, and Rosabeth Moss Kanter tell that only by
making social responsibility program as part of company strategy, the social responsibility
program programs can be endless". Because related/relevant company strategy sliver with
social responsibility programs, company will not eliminate the social responsibility
programs is even knocked over by crisis, except wishing to change its strategy by base.
According to (Wibisono: 2007) there [is] three important reason why company have
to execute CSR:

1.

Company represent schema of fair society and when company pay attention
importance of society.
Company has to realize that they operate in one environmental part of
society. Functioning social activity as effort or compensation of return of
domination of natural resources or economic resource by company which
sometime have the character of and expansive of explorative, beside as social

2.

compensation because arising discomfort at society.

Business circle and society better have relation having the character of symbiosis
of mutualisms.
To get support of society, at least permit to operate which cultural in
character. Fair when company is also claimed to give positive contribution to
society, so that can be created by relation harmonists even push of image and
performed of company.

3.

Activities of CSR represent one of the ways of to weaken or even obviate social
conflict
That Conflict potency can come effect of company operational impact or
economic and structural difference effect of arising out among society with
company component

The goal of CSR is to embrace responsibility for the company's actions and
encourage a positive impact through its activities on the environment, consumers,
employees, communities, stakeholders and all other members of the public.
Company believe that program of CSR represent investment for the shake of growth
and continue (sustainability) of effort. Its meaning, CSR not again seen as centre of expense
of (centre cost) but profit centre (center profit) in the future. Its logic when CSR
disregarded, later; then happened incident, hence expense to cover its risk much more big
compared to value which will be economized from budget allocation of CSR itself. Not to
mention risk of non-financial having an effect on ugly at corporation image and trust of
society at company.

Question 2
Examples of from two companies using program of CSR
1. Bank Negara Indonesia, Tbk (BNI)
As a sharing partner in Indonesian society, the Bank recognizes and responds to
social needs, sponsoring worthwhile religious, community and educational projects, while
working with local people to build their standard of living and financial security.
Corporate Social Responsibility (CSR) is commitments have continuation to woke
up by BNI for the behavior of ethical me and give contribution at national development at
the same time improve the quality of local community life and society as a whole. This
matter represents materialization of good meet (company goodwill) as form of appreciation
to society
Intention of CSR in BNI is to include, cover things following:
* Pushing prosperity of society and repair of environment,
* Pushing execution of clean business and hold responsible,
* Giving positive contribution to wide of society in general and environmental about
where business executed especially,
* Develop; Build society sympathy to company of which can support to be formed
of positive image company in public,
* Improving company value through forming of good reputation,
* Improving the understanding of public to BNI through information which is
channeled in social activity,
The codified set of guidelines and standards a business today should adhere to are
known as Corporate Social Responsibility(CSR ) and a Bank known as faithfully
following its tenets can in fact enjoy higher profits, as socially aware customers, media
people and other stakeholders will respond with support in kind.
In 2007, BNI has distilled six key areas in its focus on Corporate Social
Responsibility: those are education, public health care, public facilities and infrastructure,
religious affairs, disaster relief, and environmental preservation. Other than those, BNI also
put aside a portion of CSR funds to join the State-owned Enterprise Care program, together
with other state owned enterprises under the coordination of the state owned Enterprise
Ministry.
CSR Programs in 2008, BNI holds its strong commitment to sustain and build
support from its stakeholders through CSR Programs aim to:
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a. Motivate efforts to stimulate the quality of life and environmental improvement

b. Make a positive contribution to the public at large, especially around the
company locations
c. Maintain and improve a good corporate image. In its 2008 CSR program, BNI
remain focused on six key areas:
1. education and training,
2. public facilities and infrastructure,
3. public health,
4. environmental preservation,
5. Religious affairs and humanitarian aid, while continue its support to SOE
Care program.
BNI believes that these are the areas that directly connect with people in need, where
BNI could help to build prosperity and quality of life and improve productivity or future
generations. This is truly the essence of our ultimate wish: Sharing with the Nation.
Now, CSR for 2011.BNI targeting will print 100 entrepreneur people pass Corporate
Social Responsibility program (CSR) in 2011, especially in Denpasar. BNI Kanwil
Denpasar holds mutually Faculty of Economics University of Udayana (Unud) in training of
entrepreneurship followed by 50 peoples and expected by next year can perform activity of
a kind followed by more amount of participant. BNI as banking of national continue to cope
to assist creation all entrepreneur. Passing this program is expected by year come the amount
of participant can be improved to become 100 people per period so that in one year expected
can print 600 new entrepreneur people.

2. PT. Aqua DANONE

Aqua will continue to improve program of Corporate Social Responsibility ( social
responsibility company -CSR) in Indonesia in the year 2010 by adding budget become Rp12
milliard or mount 20 percentage of year 2009 equal to Rp10 milliard.

Director of CSR DANONE Aqua, Yann Brault , this morning, expressing, program
of CSR will remain to be continued even its program is improved again. Told,
program of CSR to be conducted in the year front will is equal to last year, just only
its for will be improved again.
DANONE Aqua has program of CSR the so-called WASH (Water Access,
Sanitation, and Hygiene Program) with aim to improve environment to society of
pra-secure. Through that program, aqua have Contribution to actively and have
continuation to give solution to the various problems related to is ready of] clean
water in Indonesia. One of the programs of WASH is program One to Ten which
nowadays resides in East Nusa Tenggara.
The Program in parallel and support program of Millennium Development Goals
( MDGS) which is cymbal by PBB utilize to fight hunger and poorness in various
world cleft with goals in year 2015.
Told, besides, DANONE Aqua during year 2009 besides program One to Ten, have
also executed 41 activity in the form of education of environment, drainage basin
conservation ( DAS) residing in 12 factory location in all Indonesia.
The Program also together with enables of society economics, so that activity of
CSR work well.

Question 3
Benefit and Disadvantages CSR Programs
In the middle of society which critical progressively and care to taking place environment
on a long term CSR become a compulsion to company. More than anything else in fact
company alone even also obtain; get benefit of this CSR, most off all that is hitting company
reputation management. CSR which is initially as an activity of philanthropic become a
company strategy.

Picture 2
88% of consumers said they were more likely to buy from a company that supports
and engages in activities to improve society.
Benefit of CSR Programs:
o Win new business,
o Increase customer retention,
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o Develop and enhance relationships with customers, suppliers and networks,

o Attract, retain and maintain a happy workforce and be an Employer of
o
o
o
o
o
o

Choice,
Save money on energy and operating costs and manage risk,
Differentiate yourself from your competitors,
Generate innovation and learning and enhance your influence,
Improve your business reputation and standing,
Provide access to investment and funding opportunities ,
Generate positive publicity and media opportunities due to media interest in
ethical business activities.

If grouped, at least there is four benefit of CSR to company (Wikipedia, 2008):

Differentiation Brand. In emulation of market which becoming competitive, CSR

can give typical company image, goodness, and ethical in public eye which is on its
innings create loyalty customer. The Body Shop and of BP (with flag Beyond
Petroleum"), is often considered to be to have related unique image of issue

environmental.
Resources Human. Program of CSR can assist in recruitment of new employees,
especially owning high qualification. moment of Interview, employees candidate
owning high experience and education often enquire about CSR and business ethics
company, before them decide to accept bargain. To old staff, CSR also can improve

perception, dedication and reputation in working.

To operate License. Company running CSR can push public and government give
permission" or bless" business. Because shall be deemed to have fulfilled standard

operate for and caring to wide of society and environment.

Management Risk. Risk management represents central issue for every company.
Woke up Company reputation through years can collapse in a crack by corruption
scandal, accident of employees, or damage of environment. Develop; Build culture
thing right the doing" good for company in managing risks business.

Disadvantages of CSR Programs:

Company can no longer only applying principle bussines is bussines of business
the but, company shall responsible to problem of social about him of is including
unemployment problem, poorness, marginal woman, loiterer, beggar, public road child, ugly
gizi, hunger, education for all, damage of environment, natural disaster etc.

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Question 4
Competitive advantage what got by company after running CSR
The global financial and economic crisis we have been facing in the last years is
mainly an ethical crisis; the lack of trust in corporations from all sectors amplified the
stakeholder expectations for corporate accountability and forced most companies to invest
more in ethical procedures and control in order to improve their corporate governance
practices.
That scenario placed corporate social responsibility initiatives in the spotlight as part
of corporations' attempts to rebuild public confidence, putting pressure on those who work
in CSR arena. The challenge faced by the CSR professionals now is far more complex than
a couple of years ago. It's not about proving the importance of CSR for the company
anymore but how it should be implemented in a long term strategy to avoid the green
washing effect, leading to a lack of credibility and a waste of resources.
It's important to win the hearts and minds of the top management and make sure that
they have a broad understanding of the potential of corporate social responsibility and the
necessity to minimize the negative impact of the company in society, in order to create
balance and stability for the community and the company.
A key to sustainable competitive advantage is to link CSR to the strengths of the
business. Michael Porter and Mark Kramer state in Harvard Business Review that if
corporations were to analyze their prospects for social responsibility using the same
frameworks that guide their core business choices, they would discover that CSR can be
much more than a cost, a constraint, or a charitable deedit can be a sources of opportunity,
innovation, and competitive advantage. (December 2006).
Porter and Kramer note that a company must integrate a social perspective into the
core frameworks it already uses to understand competition and guide its business
strategies. They argue that companies should stop thinking of corporate social
responsibility and start thinking in terms of corporate social integration
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Porter and Kramer further conclude that, When a well-run business applies its vast
resources, expertise, and management talent to problems that it understands and in which it
has a stake, it can have a greater impact on social good than any other institution on
philanthropic organization.
So, companies can achieve much good and it should fit within their strengths. So,
companies can achieve much good and it should fit within their strengths. CSR bring
positive benefit to company, namely 4 parts: Accepted by society; Supported by
government; Enthused by consumer; and Accompanied by LSM.

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Question 5
Why companies tend to run advertisement which is unethical?
Ethics in advertising can sometimes be border line between what is right or wrong.
There are rules and guidelines in place for the advertising companies to follow so they don't
upset or offend any viewers. Well, using advertising in a way that is misleading and uses
false claims to get the public to buy the product they are trying to sell is unethical, because
of its misuse of the information that is presented to the public.
Advertisements represent the part of communications, and communications which is
conducted in activity of advertisement mentioned as channel or appliance to influencing,
information and also a mechanism process to making a change. Communications in the
world of advertisement always try to try to perform a relation with market, in the meaning
that current formed information and instructed to someone or a group of people so that come
up with action creating transfer in marketing.
Advertisement represent modern marketing instrument, which is activity, relied on
ideas of communications. Because advertisement represent form of communication, hence
efficacy in supporting, marketing representing, manifests and efficacy of communications.
Such as those which we know communications come from Latin Language
Communication meaning propagating or advising. Where in communicating we have to
develop; build togetherness with others regarding an object.
Advertisement is indirect form of communication of that constituted at information
about excellence a product so that alter consumer mind to conduct purchasing
Function Advertisement:

Advertisement as given of information about product which on the market.

Advertisement as create of public opinion about a product.
Level of benefit yielded by existence of advertisement to make-up of sales revenue

to increasing of company profit. So, company even also start to make advertisement which
is hyperbola where displayed advertisement at media of social (television, radio, newspaper,
Magazine, etc) have is abysmal of ethics of advertising alone

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With advertisement which like, makes consumer progressively race to try the
product because advertisement make consumer interesting with product on the market by
product.
According to expert (Drs. Kuswandi Wawan, 1996:100), in its book of
Communications Mass A Analysis Media Television, telling there is three generated impact
that is:
a. Cognate impact that is ability of beholder or someone to permeating and
comprehending displayed by event is television bearing knowledge to beholder
b.

Affect imitation that is beholder given on to actual trendy displayed by is

television
c. Behavioral impact that is planted process of social values him of culture which
have been displayed by television event which is applied in life of beholder
everyday.
Third effects above relate at one particular clear effect, its meaning of process
communications will generate congeniality, behavior and attitude.

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Question 6
Weakness and benefit if companies display advertisement is unethical:
Advertisement represents media to take caring to introduce product yielded. Biggest
benefit is to bring message which wish to be submitted by producer to crowded peoples.
While benefit which is other is:
a. Advertisement extend alternative to consumer
With existence of advertisement, consumer can know the existence of various
product which is on its innings generate choice
b. Advertisement assist producer grow trust to consumer
c. Advertisement make people recognize, remember and trust ( Kasali., 1995:11-16).
Advertisements have to draw attention, later; then fasten enthusiasm enough so that
can be appetizing to product, service, or idea which is pertinent.
Besides advertisement also have some function ( Terence, 2003:357-361) among others :
1) Informing, advertisement make conscious consumer ( aware) of new brands, educating
them about various brand benefit and future, and also facility creation of brand image
which are positive. Because representing effective form of communication, capable reach
wide of peoples with expense of per contact which relative lower, advertisement
recognition facility ( new brands introduction) improve amount of request to brands
which have there is, and Improving top awareness of consumer marrow ( TOMA mind
of top awareness) for brands which have there is in product category matured. Free XL
of itself has owned separate brand consumer marrow is therefore expected by candidate
of consumer can aware to product.
2) Persuading, effective advertisement will be able to persuasive (persuading) customer to
try advertised product. Advertisement function is how the advertisement can persuade
buyer candidate to consuming product which on the market, and relate to message of
itself advertisement. How producer (advertisement) can string up message of
advertisement so that the message can be digested better by consumer,
3) Reminding, advertisement take care of company brand remain to be fresh in memory all
consumer. Advertisement function is to remind consumer to be always remember at
advertised product, with push consumer displayed the advertisement expected by
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consumer can always remember at product. So that product positioning can be created
better consumer marrow
4) Value Adding, there are three way of base where company can give added value to offers
of them: innovate, completion of quality, or alter perception of consumer.
Weakness from unethical ethics:
Undeniable these days advertisement practitioner there is still be less comprehending
of ethical order and position is advertisement. By dozens from among/between dissolve
them in creative freedom to race to create advertisement of possible and interested having
high influence energy. As a result by dozens which forget advertisement ever relate to the
problem of responsibility and ethics. Child as model advertisement it is true dont be agreed
to be to be used for product which none their consumption. Because is big of possibility will
be imitated by other children. Mothers represent part of society capable to differentiate good
which it which do not goodness.
Generally mothers very is paying attention of their children especially balita and
batita. At a period of/to this a lot of typical behavior at children, among others is in the case
of fulfilling its requirement. To all food producer specially, product child milk of balita /
batita represent especial target which have biggest market compartment compared to after
other age. Therefore lately many child milk products progressively mount. Even
advertisement of this [is] product very intensive in order to winning emulation to reach for
market domination.
Persuasion or advertisement persuasion to mothers, can cause perception which less
beneficial. Mother cannot depress its expense, also earning and expense everyday, and in the
end mother become very consumptive is, extravagant, and buying product which not
because of requirement and its function, but that conducted conscious not because
anaesthetized by advertisement fascination which in fact is not realistic.
And finally after the mother try and fell not satisfaction .Then, loss of satisfaction of
[customer/ client]. So that the purchasing just for a flash in the pan.

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Question 7
Why consumers in Indonesia just remain to be buy product displaying disingenuous
advertisement?
Ethics are the social and moral values and principles by which we live. These values
tell us what is good or bad and right or wrong. To equate these to an advertising
environment one needs therefore to look a little deeper. In this case, the question of ethics
can be further extended to those promises made by an advertiser that are either misleading
or lacking in truth.
For example, if an advert promises that use of their product will make the user look
seven years younger it is obvious that this promise is wrong as no-one can be that definite in
the description and claims of their product. However, to claim the product will make you
look younger, without a specific age attached, could not be held to be unethical. On the
other hand, if an advertisement promises you can buy a certain product at a special price,
with this ploy simply a means of getting you to visit his retail or Internet outlet, where you
will be offered an alternative that does not have the benefits of the original, then it can be
considered unethical. Furthermore, if a marketer makes false claims about a product, for
example suggesting that it is recommended by others when this is clearly not the case, this
again can be perceived to be unethical, as it is making a misleading statement and
misrepresenting the facts simply to make you purchase the product or service
Efficacy a communications process can be seen in AIDCA formula (Astrid,
1989:215) that is:
A Attention (attention)
I Interest (enthusiasm)
D Desire (desire or requirement)
C Conviction (feel confidence or trust)
A Action (action)
Process from this formula can be explained that advertisement shall earn drawing
attention mass (attention). Tidy advertisement better will earn to captivate attention of

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consumer candidate, more than anything else displayed by repeatedly. Grabbed by a success
Attention this will make excitement to know farther regarding advertised product.
Hence attention has to be improved in consumer become enthusiasm (interest). With
existence of interest to product, desire and requirement consumer candidate is immediately
awakened. By confirming that Free XL is required product during the time, so that consumer
candidate feels existence of desire or requirement of product (desire). In phase hereinafter
requirements have been created. Candidate consumer emotions have touched. by presenting
excellence of the product through and evidence witness all artist becoming advertisement
model of XL Free. So that can generate to feel trust of consumer candidate liver
(conviction). Till finally consumer candidate will come up with final phase that is action
purchasing or consume the product without think the advertising is ethic or unethical.

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