Campus Social Responsibility Implementation in Palembang City

Rita Martini

, Zulkifli

, Sukmini Hartati

and Endah Widyastuti

Department of Accounting, State Polytechnic of Sriwijaya, Srijaya Negara Street, Palembang, Indonesia

Keywords: Campus Social Responsibility, Management.

Abstract: Higher education is obliged to hold campus social responsibility (CSR) which is synergized with the

implementation of community service. One of realization of community service in higher education is the

empowerment of micro small and medium enterprises (MSMEs). This study aims to analyze the policy and

the social awareness level of higher education on the management of MSMEs in Palembang as a form of

social responsibility. The method used is descriptive qualitative method. CSR implemented in large majority

of higher education in Palembang is still in the form of corporate philanthropy, not yet based on a policy

which regulates it clearly and become a special responsibility regarding the program. The implementation of

CSR is incidental and partial, incorporated in a community service program. The contribution of CSR activity

has not maximum yet and has not given any positive impact on the management of MSMEs. The pattern of

CSR activity has not also been adjusted with the type of needs in managing MSMEs.

1 INTRODUCTION

Campus social responsibility (CSR) can be

considered by many universities today as one of the

key factors of their action in the marketplace and, in

a broader sense, in the society of which they

comprise. The university has to seek to be considered

a good competitor, a good client, a good provider, a

good employer, a good contributor and also a good

citizen, in addition to being accepted and integrated

in its local community. If it is obtained, it will have

added to its resources portfolio an intangible asset

that can have a great value as a differentiation factor,

because of its capacity of generating

confidence(Youness, 2013) and (Gulavani, et al.,

2016).

Institutions that organize higher education is a

public organization. As an organization, higher

education institutions have an obligation to

implement CSR.The implementation of CSR is a

form of commitment established by higher education

to give contribution in improving the quality of life of

society. Higher education institution has a social

responsibility to society and the environment (Dima,

et al., 2013) and (Darwish, 2014). Higher education

is also responsible on the education world and to

organize a social responsibility which is associated

with the implementation of three pillar of higher

education, which becomes a unity integrated on the

prosperity of society.

One of parts of society around the campus is

MSMEs. MSMEs have absorption level of labour

approximately 97% from national labour and

contributed on gross domestic product approximately

57% (Indonesia, 2015).

Economic census showed the amount of micro

small and medium enterprises in South Sumatra grew

20.5% from 545.000 entities to 656.700 entities in the

last ten years. Head of central bureau of statistics of

South Sumatra, said the growth of entity was

relatively high for the period of ten years. “20%

growth is relatively high, because lots of other regions

whose growths were below that. Palembang city, the

growth of entities was precisely stagnant, only 3%

since economic census was done in 2006. "20%

growth could be several buildings of entity which is

evicted for other buildings, such as mall and hotel

(http://finansial.bisnis.com, 2016).

Indonesia's weakening economy because of the

depletion of rupiah's value didn't seem influential on

the growth of MSMEs in Palembang. The head of

MSMEs sector of trade and industrial agency of

Palembang said, "every year the number of MSMEs

entrepreneur increases. The amount of MSMEs in

Palembang currently is 32.706 in various sectors.

MSMEs entrepreneur number 27.849 meanwhile

total of middle entrepreneur is 4.857. The growth of

Martini, R., Zulkiﬂi, ., Hartati, S. and Widyastuti, E.

Campus Social Responsibility Implementation in Palembang City.

DOI: 10.5220/0009995200002499

In Proceedings of the 3rd Sriwijaya University International Conference on Learning and Education (SULE-IC 2018), pages 66-72

ISBN: 978-989-758-575-3

 2023 by SCITEPRESS – Science and Technology Publications, Lda. Under CC license (CC BY-NC-ND 4.0)

MSMEs increases approximately 3.66% every year

(http://www.kompasiana.com, 2017).

MSMEs in Palembang in the development of the

enterprise often face various obstacles. The obstacles

faced are not only external, but also internal

obstacles. The obstacles faced by MSMEs generally

related to the capital aspect, permission obstacle,

business opportunity, marketing, the quality of

manufactured product, and the weakness in terms of

management, experience, and technology which were

used (http://trijayafmplg.net/berita, 2015).

Higher education as an institution which produces

intellectual community which has various resources

is expected to actively contribute in overcoming the

obstacles faced by the MSMEs. There are 20

universities with various faculties and study programs

in Palembang (http://www.dikti.go.id, 2017), which

are expected to help overcoming the problems in

managing MSMEs.

The theory used in this research is that

Stewardship theory views management as a party that

can be trusted to act as well as possible for the public

interest or stakeholders, for the interests of the

principal (community and government). Stewardship

theory describes a situation or condition in which

management is not motivated by individual goals but

rather prioritizes the interests of the organization

(Davis, et al., 1991). The theory assumes that there is

a strong relationship between organizational (higher

education) satisfaction and success. Organizational

success describes maximization utility of principals

and management groups. The utility maximization of

this group will ultimately maximize the interests of

individuals within the group of organizations.

There are several studies related to corporate

social responsibility in higher education (Dahan &

Senol, 2012), especially in terms of the association

between campus social responsibility to society and

the environment (Widyantoro & Subhan, 2009),

(Ekadjaja & Bunadi, 2012),(Youness, 2013), (Chen,

et al., 2015), (Gulavani, et al., 2016). Previous studies

have found that higher education institution has a

social responsibility to society and the environment

(Reinhard, et al., 2010) and CSR implementation for

MSMEs management (Darwish, 2014).

Overall, this paper begins with a brief explanation

of the problem and the research context that is

described in the introduction. After that, it is followed

by an explanation of the theoretical framework used,

research method, evaluation results and discuss the

findings research. The final section of this paper

explains the conclusions, implications, and

suggestions for further research

2 RESEARCH METHODOLOGY

This research used qualitative descriptive method.

The process of qualitative research involved

prominent efforts, such as asking questions and

procedures, collecting specific data from participant,

analyzing data inductively starting from the specific

themes to general themes and interpreting the

meaning of data. The final report of this research has

flexible structure or framework. Whoever involved in

this research must implement the point of view of the

researcher which is inductive styled, focused on

individual meaning, and translated the complexity of

a problem (Creswell, 2007).

The object of research was thirteen higher

education in Palembang, which was divided into 12

universities and 1 polytechnic. The criteria refer to the

accreditation ranking of higher education and study

program which is dominantly “B”

(http://www.dikti.go.id, 2017).

This study uses a survey method with a

questionnaire instrument. Filling out the

questionnaire requires the availability of time and

opportunity and the ability of the respondent to be

willing to answer the questions actually. The

information was selected using purposive sampling

technique in which the informer has characteristics

according to the purpose of research. All the

population was made as the sample of this research.

Observation unit was 97 people, in university namely

rector, vice rector, head of research centre and

community service, dean, and head of

department/head of study program. In polytechnic,

including director, vice director, head of research

centre and community services, and head of

department/head of study program.

Type of data collected was primary data, which

was data obtained from the result of deep interview

with parties related to the implementation of CSR in

research location, observation notes, and then

completed by secondary data which was formal

document.

The data analysis in this research used Derrida

deconstruction. (Muhajir, 2011) tried to explain five

steps of deconstruction done by Derrida: 1) to

transform concepts, 2) to display them, 3) to turn

them again their presupposition, 4) to rein scribe them

in other chains, and little by little to modify the terrain

of our work, and 5) thereby produce new

configuration.

Campus Social Responsibility Implementation in Palembang City

3 RESULT AND DISCUSSION

3.1 Result

This research has distributed questionnaires to 97

respondents. The response rate for returning the

questionnaire was 67.37 percent. The 30% response

rate includes an adequate category (Sekaran &

Bougie, 2010). Referring to the statement above, the

response rate in this study was 67.37 percent, so it was

included in the adequate category.

Most of higher education in Palembang does not

have a binding policy about CSR which directly

related with the management of MSMEs. CSR

implemented by most of higher education was still in

the form of corporate philanthropy, only on the level

of generosity or willingness, not yet into a policy

which clearly regulates and becomes specific

responsibility regarding the program.

The implementation of CSR on most of higher

education in Palembang is incidental and partial, still

incorporated in the community service program. The

contribution of CSR activity is not maximal and has

not given any positive impact on the management of

MSMEs. The pattern of CSR activity has not been

adjusted with the type of necessities in MSMEs

management.

Sriwijaya University was not maximal in

implementing CSR as a MSMEs empowerment.

Lecturer and student often organize coaching activity

for local community, in the sector of MSMEs

development, or the utilization of technology every

year. CSR implemented is still in the form of

corporate philanthropy just like what companies

implement because it’s only on the level of generosity

or willingness, not a policy which clearly regulates

and becomes special responsibility about the

program. This responsibility is usually shaped into a

charitable activity, donation or other activities may

not directly relate with the activity of the enterprises

(Harahap, 2007).

State Polytechnic of Sriwijaya did not have any

specific policy about CSR yet. The reason was

because lack of understanding, lack of participation

from human resources, and lack of funding sources.

Currently it is still in the process of preparing the

policy formulation about CSR, where the obstacles

faced are lack of reference/information, less

motivated, and lack of participation from human

resources. It is expected to allocate special fund to

organize CSR program. The allocation of CSR fund

should come from ‘PNBP’ fund, and partnership

fund. CSR activity particularly in managing MSMEs

hasn’t been recorded and executed maximally, hasn’t

been integrated and has not been sustainable. CSR

implementation is incidental and partial, for instance

in ‘dies natalies’ commemoration or incorporated in

the community service program. This condition

causes the contribution of CSR activity less useful

and does not yield positive impact on the

management of MSMEs. The pattern of CSR activity

should be adjusted and related with the type of needs

in managing MSMEs. CSR implemented is in the

form of corporate philanthropy.

CSR implemented by Muhammadiyah University

is a form of corporate philanthropy. The obstacles in

making specific policy about CSR, is lack of

understanding, lack of reference/information, and

lack of participation of human resources. Lecturer

and student every year often organize activities which

are part of community service program with the

funding from ministry of higher education and

research and partnership. The activity is coaching for

local community, and in the sector of MSMEs

development. The scope of CSR activity contribution

limited, the impact is not maximal on the

management of MSMEs in Palembang. The pattern

of CSR activity needs to be adjusted with the type of

necessities in the management of MSMEs.

Bina Dharma University has implemented the

CSR concept just like what is in companies, which is

a written and binding policy. Specific policy of CSR

is in the vision of university. CSR program or

community service is categorized as a form of

corporate responsibility, because it has been a

responsibility and obligation based on the condition

of the third three pillars and the willingness from the

higher education side. Corporate responsibility,

responsibility activity is part of company

responsibility because of the condition of constitution

or part of the willingness or readiness of company

(Harahap, 2007). The allocation of fund for CSR

activity comes from government fund, university

fund, and partnership fund. UBD has formed business

consultation unit named Bina Dharma Education

Centre (BDEC) which organizes workshop and

coaching for the entrepreneurs to help them in

managing MSMEs.

Tridinanti University is in the process of

preparing specific policy formulation about CSR. The

obstacles faced in the preparation of CSR policy is

lack of motivation from academic studies. CSR

implemented is only as generosity or willingness. The

contribution of CSR activity is on limited scope, so

the impact is not maximal yet on the management of

MSMEs. The pattern of CSR activity is not adjusted

yet with the type of MSMEs necessities.

SULE-IC 2018 - 3rd Sriwijaya University International Conference on Learning and Education

CSR implemented by PGRI University is

corporate philanthropy. The obstacles of formulating

specific policy about CSR, is lack of understanding

and less fund in private higher education. CSR

activity related to the management of MSMEs hasn’t

been maximally implemented. There should be an

adjustment of CSR activity pattern with MSMEs

management.

Palembang University is in the process of

preparing specific policy formulation about CSR,

which later on will be poured in the vision of higher

education. In preparing CSR policy, the obstacles

faced are lack of understanding and less participation

from academic studies. CSR activity funding is

expected to come from partnership fund. CSR

implemented is still in the form of corporate

philanthropy. CSR implementation has not been

maximal yet in distributing the welfare of society.

The contribution scope of CSR activity still limited,

the impact has not been visible on the management of

MSMEs. The pattern of CSR activity has not been

adjusted with the needs of MSMEs.

CSR implemented by Khatolik Musi Charitas

University is still in the form of corporate

philanthropy. The obstacles in making specific policy

about CSR is lack of understanding, lack of

reference/information, and less participation of

human resources. Lecturer and student every year

often organize activities which are part of community

service program with the funding from ministry of

higher education and research and partnership. The

activity is coaching for local community, and in the

sector of MSMEs development. The scope of CSR

activity contribution still limited, the impact is not

maximal on the management of MSMEs.

Taman Siswa University is in the process of

preparing special policy formulation about CSR,

which later will be poured in the vision of university

and foundation. Funding for CSR activity is expected

to come from partnership and foundation fund. CSR

implemented is in the form of corporate philanthropy.

The implementation of CSR is not maximal yet and

the scope is still limited. The necessities in managing

MSMEs need to be inventoried and adjusted with the

pattern of CSR which will be performed.

IBA University does not have specific policy

about CSR. Lack of understanding and lack of

reference/information, are the obstacles faced in

preparing CSR policy. The funding of CSR activity is

expected to come from government budget (state

budget of income and expenditure) and partnership

fund. CSR implemented is in the form of corporate

philanthropy. It performs CSR activity cooperating

with the government which are workshop and

coaching, and helping the management of MSMEs in

the sector of administration. CSR activity is limited

in scope, thus the impact is not visible yet and the

pattern has not been adjusted with the necessity of

MSMEs management.

STIE & STMIK MDP does not have specific

policy about CSR yet. CSR implemented is still in the

form of corporate philanthropy. CSR implementation

is not maximal yet and still incorporated as part of

community service program. The example of CSR

activity performed by STMIK MDP cooperating with

agency of industrial, trading, and cooperative of

Palembang was workshop of information technology

(IT) on MSMEs entrepreneur. Workshop IT program

held on 10-11 November 2014 was expected to

prepare the competitiveness of MSMEs in the

implementation of AEC 2015. IT could be a

promotion facility of every MSMEs featured product.

The participants were 80 MSMEs from 16 sub-

districts. They moved in every sectors of business

such as fish culinary. MSMEs could utilize available

technology to market their product wider. The head

of STMIK MDP said, his party previously received

sharing from the government of Palembang related to

the promotion obstacles of MSMEs entrepreneur until

now. The need of marketing through internet is

necessary in the era of technology currently. Lots of

creative method of marketing in internet can be used,

not necessarily always through social media. Team

taught how to create a simple website, the ethics of

sending email, and other technical procedures for

MSMEs. The development of promotion through

internet currently has already become very positive,

proven from the growth of online shop in society. The

support of city government including the increase of

hotspot point can be utilized by the entrepreneur

(http://ekbis.sindonews.com, 2017).

Sjakhyakirti University is still in the process of

preparing policy formulation about CSR, where the

obstacles faced are lack of motivation, and lack of

participation from human resources. The funding

allocation of CSR program is expected to come from

government and partnership fund. CSR implemented

is in the form of corporate philanthropy. The

implementation of CSR is incidental and partial, or

incorporated in the community service program. CSR

activity is not maximal and has not given any positive

impact, and the pattern is not adjusted with the

necessities in managing MSMEs.

STIE and STMIK IGM do not have specific

policy about CSR. CSR implemented is in the form

of corporate philanthropy. The implementation of

CSR is still incorporated as a part of community

service program. The scope of CSR activity is

Campus Social Responsibility Implementation in Palembang City

limited, thus the impact is not visible. The pattern of

CSR has not referred to the necessity of MSMEs.

3.2 Discussion

Corporate social responsibility is divided into three

forms namely: corporate philanthropy (willingness or

charity, not yet a responsibility), corporate

responsibility (is the responsibility of the company

can be due to legislation or initiative), and corporate

policy (corporate responsibility is already part of

company policy) (Harahap, 2007).

In line with the development of social

responsibility concept, from philanthropy to

community development and now become

sustainable development (Widyantoro & Subhan,

2009) and (Baried & Septarini, 2012). Higher

education is expected to have awareness in

implementing its social responsibility on society

around the campus, not only on the level of

compassion or generosity, but should reach the

problem of sustainable development so higher

education will act as an agent of prospering society

around the campus through improvement and

development of social and economical order, health

of society, education, and environmental condition in

order to sustain the preservation of environmental

function (Darwish, 2014) and (Gulavani, et al., 2016).

Higher education can be the pilot project or an

exemplary project for corporation in implementing

CSR considering that higher education is an

institution producing intellectual community which

has various resources.

The policy of each higher education in Palembang

particularly related to CSR for MSMEs entrepreneurs

generally is not yet available, only implicit on the

mission of higher education and department/study

program. Policy about CSR is poured in the three

pillars of higher education. Higher education

encourages academic studies to create activities

related with CSR for the prosperity of local

community.

In running CSR activity, there is no standard or

particular practice which is deemed as the best.

Higher education has different characteristics and

situations, and influential on how they view social

responsibility. Higher education has different

condition in the implementation of CSR. CSR

implementation done by each higher education

depends on mission, culture, environment, risk

profile, and operational condition of each higher

education (Susiloadi, 2008).

The execution of CSR program in higher

education in Palembang principally obtains support

from leader as motivator and facilitator to create

cooperation with various parties. Form of higher

education cooperation is by doing partnership with

local government as well as investor to support

resources for the smoothness and success of

community service. The execution of social

responsibility is expected to give positive impact and

useful output, can produce quality of life, and

prosperity of society. CSR won’t run well if it’s not

seen as something important by all the higher

education, including leader, lecturer, employee, as

well as student. If every individual has equal

sensitivity on the changes of local community, then

whatever the form of program, it will be executed

well (Dahan & Senol, 2012), (Baried & Septarini,

2012) and (Gulavani, et al., 2016).

CSR implementation in higher education in

Palembang has been done based on the conditions of

three pillars of higher education. The role of higher

education related to three pillars as a form of

community service is acting as CSR performer,

informer, mediator and motivator. The interesting

phenomenon in this research is about the policy and

CSR implementation for MSMEs management,

because most of higher education has not had any

policy and CSR program which directly relates with

the management of MSMEs.

The CSR program is synergized by universities

through the implementation of the third ‘Tridharma’,

namely community service. Community service is the

‘civitas academica’ activity by utilizing science and

technology. The activity is done to improve the

welfare of the people and the intellectual life of the

nation. As a form of CSR, the social aspect of

community service is aimed at internal campus and

external campus community. CSR is also interpreted

as a social responsibility to the community around the

campus. These responsibilities relate to options for

the poor such as helping the poor around the campus.

Students and lecturers are given the opportunity to

share their knowledge through various community

service program.

One of the main innovations is the brief to realize

cooperative research projects. That means that

collaboration with partner enterprises and universities

can be intensified, and steps can be taken to make

academic studies more up to date (Reinhard, et al.,

2010). CSR facilitates continuous improvement in

higher education institutes with external impact and

internal capacity, performance and management

(Gulavani, et al., 2016).

Palembang city need to address the following

issues to promote the SME sector through higher

education (Darwish, 2014): 1) poor coordination and

SULE-IC 2018 - 3rd Sriwijaya University International Conference on Learning and Education

lack the capacity for continuation; 2) SME support

programs lack effective implementation; 3) Lack of

effective policy environment for SME formation and

growth is difficult for SMEs to survive; 4) adequate

educational programs are crucial to make SME’s a

success; 5) lack of education may lead to poor

management on part of the entrepreneurs; 6) the lack

of prior proper training to the SMEs projects owners;

7) limited access to financing; higher borrowing cost,

limited collateral resources, poor book keeping and

accounting practices; and 8) none of the missions of

private universities shows special interest in

entrepreneurship.

The role of MSMEs in world economy has been

momentous, especially in increasing GDP and

enhancing employment opportunities. They have

played and are still playing an outstanding role in the

development of several developed and developing

countries mainly due to the fact that it comprise a

major part in the industrial and economic activities in

the economies (Darwish, 2014).

CSR needs to be a component of each institution’s

strategic planning process. Strategic planning is a

complex and time-intensive process. It is a process

that should allow access for stakeholders from all

level of the higher education system (Chen, et al.,

2015). The potential of strategic planning will not be

realized until there is a strong and realistic strategic

plan for the future. Such a plan must focus quite

strongly on the details of how reform can and will be

implemented, along with realizing the CSR impact

for not only the university, but also for the community

and global society.

Higher education commitments will be CSR at the

operational level as well as the academic level, mostly

by curricular activities. This will not only be

beneficial to the institution itself but also will be

beneficial to the society in general (Dahan & Senol,

2012) and (Gulavani, et al., 2016).

4 CONCLUSIONS

Every higher education should be make a specific

policy about the condition and implementation of

CSR clearly and binding. CSR strategy should be

implemented with the mission of higher education

institutions. CSR action has to be internalized and

must be supported by the management.

Collaborations between government, educational

institutions and corporate will accelerate educational

reform and thus bring about the desired social

development. Program of MSMEs empowerment

should be held routinely, not just once in a while but

continuously held to improve the quality both in skills

aspect as well as income.

Higher education which already has special

policy regarding CSR is Bina Dharma University.

The special policy is poured in the vision of higher

education. CSR implementation is done by holding

routine meeting with MSMEs entrepreneurs in every

beginning of the year. This opportunity is used to

accommodate and collect data/information related to

the development and problems faced by targeted

MSMEs. Their programs are focused in the

empowerment of micro small and medium

enterprises.

ACKNOWLEDGEMENT

We want to deeply thank the Directorate of Research

and Community Service, Directorate General of

Strengthening Research and Development, Ministry

of Research, Technology and Higher Education of

The Republic of Indonesia who have provided

funding for our research. Sincere thanks are also

rendered to the Center of Research and Community

Service of State Polytechnic of Sriwijaya that has

facilitated our research.

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SULE-IC 2018 - 3rd Sriwijaya University International Conference on Learning and Education