Endorsing Employee Involvement in CSR Programs

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Gunawan, Andri and Taufan, Erick and Narlurita, Atika and Aditya W, Haryoga (2017) Endorsing Employee Involvement in CSR Programs. Project Report. Sekolah Tinggi Manajemen IPMI, Jakarta Selatan. (Unpublished)

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Each Year, PT Perusahaan Gas Negara (PGN) group allocates and uses large sums of money for Corporate Social Responsibility (CSR) Activities. The main reason for this large spending on CSR activities is compliance to government regulations. Beside compliance, there are other mutual benefits that PGN can get from CSR activities. Some benefits that have been leveraged by PGN are good corporate image for investors, shareholders and society, good support from society around PGN pipeline projects, and more security for PGN vital assets, such as pipelines, off take stations and compressors stations. Unfortunately, there is an important mutual benefit that PGN can get from one of the most important stakeholders of PGN business, which is PGN employees, but has not been properly leveraged, it is the benefit of good CSR practices in improving corporate image for PGN employees . Many HR experts and practioners have conducted research about the relations between CSR practices and employees' perceptions of the company and how they effect on employees engagement. They concluded that good CSR practices by the company had a positive effect on employees 'perception of the company and it eventually had a positive effect on employees' engagement. Employees who see that their company has good CSR practices tend to feel good about their company and the effects on how willing they put extra efforts for the sake of the company (employee engagement). Many researches by HR practitioners and experts suggest that employee engagement is a crucial factor that determines how well companies can survive and flourish in their business, especially in this VUCA world. Employees with high levels of engagement shows more commitment to the company's goals, shows more discipline, and has higher performance and productivity. The importance of employee engagement for the company is even more prominent for PGN, since PGN has been in a transformation period since 2011. This transformation period is still going on and many employees don't know when it will end. According to the research, the prolonged process of transformation can create. uncertainty feelings and restlessness among employees and this negative feelings may have detrimental effects on employees engagement level. So this GFP try to propose the methods to leverage the un-levereged benefits of PGN CSR activities on employee engagement to counter the negative effects of the prolonged transformation period. This GFP proposing two ways to leverage the benefits of PGN CSR activities on employee engagement, the first is conducting massive socialization programs about PGN CSR activities and the second is involving more employess on PGN CSR activities. By doing these two activitics, hopefully PGN employees will have more positive feelings about PGN and eventually will help in increasing their engagement level. To make sure the effect of socialization and employees involvement program on positive perception of PGN employees, this GFP also propose measurement activities before and after the program.

Item Type: Monograph (Project Report)
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Library > GFP (Group Field Project)
Depositing User: Melinda Lusyyana
Date Deposited: 23 Jan 2020 06:42
Last Modified: 23 Jan 2020 07:33
URI: http://repository.ipmi.ac.id/id/eprint/572

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