Csr in Bumi

TABLE OF CONTENT

I. Introduction 1

I.I Business Ethics 1

I.II Corporate Social Responsibilities 2

II. Theoritical Background 4

II.I The Role of Ethics and Social Responsibility in Business Decision Making 4

II.II Recognizing Ethical Issues in Business 5

II.III The Nature of Social Responsibility 6

III. Case Discussion 9

III.I Company Overview 9

III.II Implementation of Business Ethics 9

III.II.1 GCG Policies 10

III.II.2 Code of Conduct 11

III.II.3 Audit Committee Role 12

III.II.4 Speak Up System 13

III.III Corporate Social Responsibility 14

III.III.1 KPC 15

III.III.2 Arutmin 20

IV. Conclusion 22

V. Literature 24

CHAPTER I

INTRODUCTION

I. Business Ethics

Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Applied ethics is a field of ethics that deals with ethical questions in many fields such as medical, technical, legal and business ethics.

Discussion on ethics in business is necessary because business can become unethical, and there are plenty of evidences as in today on unethical corporate practices. Even Adam Smith opined that ‘People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices’ Business does not operate in a vacuum. Firms and corporations operate in the social and natural environment. By virtue of existing in the social and natural environment, business is duty bound to be accountable to the natural and social environment in which it survives. Irrespective of the demands and pressures upon it, business by virtue of its existence is bound to be...