BUSINESS ETHICS & GOOD GOVERNANCE

(BE &GG)

Environmental Ethics
Quiz And Forum – 4 E-learning

Prof. Dr. Ir. Hapzi Ali, MM, CMA

By

Abdul Latif : 55117120125

Master Of Management
Mercu Buana University
Jakarta – 2018
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1. ENVIRONMENTAL ETHICS

. Environmental ethics (ecological ethics) is an approach to the environment that sees the
importance of understanding the environment as a whole life that supports each other, so that
all elements have the same meaning and meaning.

Djarum Indonesia's Business and Work Ethics is a set of commitments consisting of business
ethics of PT. Djarum and work ethics of PT.Djarum employees who are the basic rules in
conducting business relations with stakeholders and professional working relationships.
Business and Work Ethics apply to all elements acting on behalf of PT Djarum, subsidiaries
and affiliates under control, shareholders (investors) and all stakeholders or business partners
who conduct business transactions with PT.Djarum.

PT.Djarum explained Business Work Ethics and Work Ethics about the Work Ethics and
Business Ethics that must be displayed by PT.Djarum Personnel and that should not be
displayed as a description of the implementation of GCG principles, namely:

a. Transparency

b. Accountability

c. Accountability

d. Independence

e. Fairness of PT.Djarum

2. THE ROLE OF STAKEHOLDERS

2. Stakeholders in Business

Every business involves transactions with humans. These people are affected by the business
and therefore have an interest in the business. They are referred to as stakeholders or people
who have interests in the business. Five types of stakeholders involved in a business: Owners,
creditors, employees, suppliers and customers.

Each type of stakeholder plays an important role for the company, as explained below.
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Owner

Every business starts as a result of an idea about a product or service by one or more
entrepreneurs. As explained earlier, entrepreneurship is an act of creating, regulating, and
managing a business. Entrepreneurs are very important for new business development
because they create new products (or improve existing products) that customers want.

Creditors

Companies usually need financial support beyond what their owners provide. When a
company is established initially, the company issues a burden before it can sell a product or
service. For example, the company must buy a machine, rent facilities, and hire employees
before earning income. During the first few months, the burden can exceed his opinion even if
the company is well managed. The owner of a new business may initially have to rely on
friends or family members for a loan because their business does not have a history that
proves that the business is likely to succeed and therefore able to repay the loan on time.

Employee

The company employs employees to carry out its business operations. Some companies have
few employees, while other companies, such as GENERAL MOTORS and IBM, have more
than 200,000 employees. Many companies succeed because of their employees. Employees
responsible for managing work assignments from other employees and making important
business decisions are called managers. The performance of a company depends heavily on
the manager's decision. Even though a good manager's decision can help a company to
succeed, their bad decisions can cause the company to fail.

Supplier

Companies generally use raw materials to produce their products. For example, car
manufacturers use steel to make cars, while contractors need cement, wood planks, and many
other raw materials. Companies cannot complete the production process if they cannot obtain
raw materials. Therefore, their performance depends in part on the ability of their suppliers to
deliver raw materials on schedule.
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Customer

The company cannot survive without customers. To attract customers, a company must
provide the desired product or service at a reasonable price. The company must also ensure
that the product or service produced has adequate quality so that customers are satisfied. If a
company cannot provide a product or service at the price desired by the customer, then the
customer will switch to a rival company.

3. PARTNERSHIP

Definition of Partnership as referred to in Law No. 9 of 1995, is a collaboration between small

businesses and medium businesses or with large businesses accompanied by coaching and
development by medium or large businesses with the principle of mutual need, mutual
reinforcement and mutual benefit.

In this collaboration, there is a coaching and development implied, this can be seen because
basically each party must have weaknesses and strengths, precisely with the weaknesses and
strengths of each party will complement each other in the sense that one party will fill in the
way of coaching against other weaknesses and vice versa.

Examples of Ethich Business implementation cases and Good Govermance in

Environmental Ethich at PT. DJARUM

The stories about trees that I have mentioned here and there, are in line with an interesting
program initiated and implemented by PT Djarum: Trees for Life. A program that is part of
the leading tobacco company CSR (Corporate Social Responsibility) activities as a form of
social responsibility and constructive empathy of the company towards society and the
environment.

What's interesting is that, since 1979, this company has dedicated itself to preserving the
environment for a quality life with the Djarum Bhakti Lingkungan program. The Holy City is
the first step of this program. Thousands of shade plants are planted. In addition, under the
umbrella of Djarum Bakti Lingkungan has conducted a conservation action on the slopes of
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Mount Muria with shade plants and trees of economic value, so as to be able to maintain
important areas of the water absorption of the Holy city. Apart from that since 2008.

Djarum BaktiLingkungan cooperates with the National Land Agency (BPN) of the
Central Java Regional Office, participating in the Bengawan Solo Watershed Conservation
program with a commitment of 700,000 trees. Luna Maya planted trees in the framework of
the Djarum Bakti Lingkungan program, Trees for Life, in Demak (18/4), Luna Maya planted
Trembesi trees in the Trees for Life Djarum Bakti Lingkungan program in Demak (18/4),
Photo Source: Trees Site for Life PT Djarum. As revealed in the press siaram, in the
framework of the anniversary of PT. The 59th Djarum, on April 18, 2010, as many as 400
employees of the General Library in Kudus with Luna Maya, an environmental observer,
planted a 1.2 km Trembesi Tree in Demak, Central Java. This activity is an advanced program
of Djarum Trees For Life, from the Corporate Social Responsibility of PT Djarum's
Environmental Service which plans 2,767 Trembesi Trees along the Turus Semarang-Kudus
road in Central Java. Serious and consistent to preserve the environment is the spirit of
Djarum Trees For Life that wants to be transmitted parties and the wider community. It began
with the planting of the Pohon Trembesi with the Governor and the Muspida of Central Java,
followed by a few weeks of planting together with artist Nugie and the NGO Non-
Governmental Organizations (NGOs). "I saw that along the Demak road was a road that many
vehicles often passed, ranging from private vehicles to trucks. Therefore, planting Trembesi
trees is very suitable to be planted in this area because it can absorb a lot of CO2 and other
carbon emissions, so that in the future this road can be a shady and green road. I hope that the
Trembesi Tree that we plant now can grow to its full potential and certainly be cared for by
the wider community. Let's plant and care for the Tree of Trembesi, "Luna asked.

The company's commitment also does not stop at certain incidental activities. In fact, the
Trembesi Tree Seeds used in the series of 2,767 Planting Trembesi Trees along the Semarang-
Demak road are from the Plant Nursery Center (PPT) of PT. Djarum.

"PPT is currently conducting a cultivation of Trembesi Tree seedlings totaling 300 thousands.
The plan is for the nursery to fulfill the Djarum Trees For Life program" said Yunan Adity of
the PT Djarum Plant Nursery Center.
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To maintain the continuity of its activities, one of the support of PT. Djarum is by
establishing a variety of intensively managed nurseries. It is expected that with the efforts to
breed various of these plants, PT. Djarum can also be part of the effort to maintain and
preserve rare plants to be protected from extinction. Until now, PPT has had a total of around
100 thousand types of plant seeds, including rare plants such as Kepel, Palm, Nogosari,
Kawista fruit and Trees Bottles from Africa. "It is true that economic and social objectives
have long been seen as distinct and often competing. Butthis is a false dichotomy ...
Companies do not function in isolation from the society around them. In fact, their ability to
compete depends heavily on the circumstances of the locations where they operate. ”, Stated
the words of Michael E. Porter and Mark R. Kramer in his writings on" The Competitive
Advantage of Corporate Phi- philanthropy ", in the Harvard Business Review, December
2002 , page 5. The above statement found its own meaning when connected with the activities
carried out by PT Djarum Kudus through the Djarum Bakti Lingkungan program, Trees for
Life.

The implementation of the triple bottom line (profit, planet, people) concept in the
"mainstream" business ethics initiated by John Elkington obtained its form through this
activity. The company is expected not only to pursue mere profit but also to show great
concern for the environment and the surrounding communities where the company operates.
With the program

This CSR is not only a long-term investment that is useful for minimizing social risk, it also
serves as a means to improve the company's image in the public eye. In essence, CSR is a
business operation that is committed not only to increase the company's profits financially,
but also to the socio-economic development of the region in a holistic, institutional and
sustainable manner. I also applaud and raise my thumbs up for the constructive efforts that
have been made by a number of large corporations, including PT Djarum Kudus, through its
CSR program which has shown a high commitment and concern for preserving the
environment with Trees For Life activities. This is a form of real social empathy to avoid the
pain of humanity due to environmental damage. I am interested in Elkington (1998) 's opinion
in his book Canibals With Forks: The Triple Bottom Line in 21st Century Business (as I
quoted from the paper Mr. Edi Suharto PhD Chair of the Postgraduate Program of Social
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Work Specialist, Bandung Social Welfare School (STKS). at the Two-Day CSR (Corporate
Social Responsibility) Seminar: Strategy, Management and Leadership, Intipesan, Hotel
Aryaduta Jakarta 13-14 February 2008) which categorizes companies that care and do not
care about CSR based on the analogy of insects. First category companies are like caterpillars,
who have greedy business models and don't care about their surroundings. The second
category is a grasshopper-like company, a business model that is also exploitative and
degenerative. This second category may have begun to practice CSR. However, CSR is not
done with all my heart. CSR in this company is only "Panties" to cover the "nakedness" of the
company to avoid pressure from the community or NGOs. Butterfly companies are the third
category. Corporations like this have a strong commitment to running CSR. For this company
CSR is an investment, not lip service. The last category is the bee corporation. Companies
like this have regenerative or growing properties. This ideal company implements business
ethics and carries out good CSR. I believe the CSR model developed by PT Djarum Kudus is
an ideal type of corporation that firmly holds the consistency of social empathy through the
Trees for Life program at the same time to maintain the continuation of the program that has
been proclaimed by supporting activities such as preparing seedlings of superior plants
through the Plant Nursery Center owned by

LITERATURE REGISTRATION

Hapzi Ali, 2016,Modul BE& GG,Environmental Ethics, Universitas Mercu Buana

Dr. fr.ff.M.Budi Djatmiko.M.SI, BUSINESS COMMUNICATION

Undang-Undang Nomor. 9 Tahun 1995 tentang Usaha Kecil, Pasal 1 angka 8

Peraturan Pemerintah Nomor. 44 Tahun 1997 tentang kemitraan, Pasal 1 angka 1