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Governance Analysis Based on ISO 26000 and Commitment of Sustainability Case Study of Marunda Low Cost Housing

Prepared by Lintong Manik, MM-CSR Copyright©2017 – MM-CSR Trisakti University

Governance Analysis Based on ISO 26000 and Commitment of Sustainability Case Study of Marunda Low Cost Housing Lintong Manik – 122131607 MM CSR Universitas Trisakti

Definitions of Organizational Governance Organizational governance is defined as; a system by which an organization makes and implements decisions in pursuit of its objectives

Goals of Organizational Governance To enable the organization to conduct social responsible behavior To integrate social responsibility activities into an organization’s extant systems

Why the Governance of the Low Cost Housing of Marunda? Social responsibility is the responsibility of various stakeholders

The government of DKI Jakarta always deals with slums and urbanization

One of the efforts to reduce slums is by building vertical residential buildings (Rusunawa)

The development of Marunda low cost housing involves multiple stakeholders – government (Central and DKI Jakarta), private sectors and NGOs.

Marunda low cost housing is a pilot project

The correlation between the research topic and ISO 26000 Organizational Governance Community Involvement and Development The Environment

Indonesia Context Law No. 20,Year 2011 on apartments  Government Regulation Number 14 year 2007 on public housing  Governor Regulation Number 111 Year 2014 on low cost housing  Governor Instruction Number 230 year 2015 on the establishment of cooperatives 

Research Topic The Governance of CSR for Marunda Low Cost Housing (Rusunawa Marunda)

Research Findings Dimension

Analysis

Commitment to social responsibility

• The commitment of the implementation is not based on the social responsibility • There are no set targets and goals

Leadership commitment and accountability

• Not based on commitment but motivated by the governor regulation • Accountability is limited on the activity report

The implementation system of social responsibility

There are no SOP nor incentives in place but the implementation of social, economic and environmental sustainability exists.

Use financial, natural 1. Financial resources come from the regional budget and human resources 2. Collaboration with Meek Foundation efficiently 3. Efficient use of electricity and water 4. Cooperation with PGN to supply gas for cooking 5. Vertical residential building is proven to deliver efficient use of land

Research Findings Dimension

Analysis

Promote a fair opportunity for underrepresented groups

There is a policy that reserves the ground floor for the elderly people

Balance the level of authority, responsibility and capacity of people

Residents, coordinators and government representative participate in programs designs.

Keep track of the implementation of decisions to ensure that these decisions are followed in a socially responsibility way

The monitoring process of the 34 of low cost housing indicators set by the Housing Department is still lack of supervision

Periodically review and evaluate the governance processes of the organization

Stakeholders conduct cross-sectors meeting quarterly

Research findings of Sustainability Commitments Dimension

Analysis

Economic sustainability

1. 60% of the total income allocated for consumption, 30% for housing rent and 10% for health and education. No allocation for saving. 2. Vocational training, waste recycle program, job fair and open access to capital through establishment of cooperatives, availability of land for agriculture and fisheries. 3. Meek Foundation targets 48% of the populations to have a job. 4. Partnering with Gerhati Foundation to provide training and mentoring on Small and Medium Enterprises (SMEs).

Research Findings Dimension

Analysis

Social Sustainability

1. Meek Foundation runs a training program on how to become real men and real women 2. Meek Foundation establishes and runs early childhood education program (PAUD) 3. A gathering space in every floor of every building for the residents to interact 4. Residents participate in communal events

Environmental sustainability

1. 2. 3. 4. 5. 6.

Waste management: reduce, reuse, recycle Availability of clean water Establishment of waste bank Efficient use of electricity No plans on environmental conservation in place Maintenance of buildings are still handled slowly

Wellbeing Dimension

Advantages

Disadvantages

Wellbeing

1. Cost for rent is cheap and affordable 2. Clean and healthy environment

1. Transjakarta buses are available but the buses go through routes that stop at many stations 2. Many roofs of the houses are leaked 3. A health facility available but only one ambulance available and limited variety of medicine

Recommendation CRS practitioner:

Help government in designing and managing proper CSR programs at Marunda

Regulator:

Design regulations for community enterprises at low cost housing

Organizations:

Academic:

Community:

Implement excellent program that focuses on three pillars: sustainable economy, social and environment

Research should use quantitative methods, involving previous officials as respondents and to conduct comparative studies

To work with established cooperatives outside of Marunda for the management of communitybased enterprise

References Daniri, 2008 Standardization of corporate social responsibility. Accessed from www.mdaniri.com  Elkington, (1998). Partnerships from cannibals with forks: The triple bottom line of 21st-century business.  Radyati, Maria R Nindita. (2015). ISO 26000 and Governance Organizations Toolbox. Jakarta: Center of Change, Entrepreneurship, and Third Sector Universitas Trisakti. 

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