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Understanding CSR: Definition, Key Areas, and How Harita Nickel Puts It into Practice

10 April 2025

Corporate Social Responsibility (CSR) is a concept where businesses take responsibility for the impacts of their decisions and activities on society and the environment.

However, CSR is still often misunderstood as being limited to charity events such as building schools or providing donations. In reality, CSR is much broader and more strategic.

At Harita Nickel, CSR is an integral part of our corporate strategy, focused on delivering long-term value for surrounding communities while supporting environmental sustainability. This article will explore the CSR concept in greater depth and how Harita Nickel puts it into action on the ground.

What is CSR?

There are many definitions of CSR. One widely recognized reference is from ISO 26000: “CSR is an organization’s responsibility for the impacts of its decisions and activities on society and the environment, through transparent and ethical behavior that contributes to sustainable development, including the health and welfare of society; takes into account the expectations of stakeholders; complies with applicable laws and is consistent with international norms of behavior; and is integrated throughout the organization.”

Meanwhile, the World Business Council for Sustainable Development defines CSR as “a business commitment to contribute to sustainable economic development while improving the quality of life of employees and their families, the local community, and society at large.”

Both definitions highlight that CSR is not merely about running social programs—it is about a company taking full responsibility for its actions across all aspects of operations.

Key Areas of CSR

According to ISO 26000, corporate social responsibility covers seven key interrelated areas. These serve as a guide for companies to operate ethically, transparently, and in ways that make positive contributions to society and the environment.

1. Organizational Governance

Good governance means building ethical, open, and accountable leadership and decision-making systems. It includes how companies manage risks and maintain stakeholder trust.

At Harita Nickel, good governance is reflected in policies such as our Board Working Guidelines, Code of Ethics and Conduct, Anti-Bribery, Corruption, and Money Laundering Policy, Responsible Procurement Policy, and Whistleblowing Policy.

2. Human Rights

Companies are responsible for respecting and protecting the fundamental rights of individuals. This includes human rights due diligence, grievance mechanisms, and protecting vulnerable groups.

Harita Nickel integrates human rights principles into all operations. We voluntarily align our approach with international standards such as the Initiative for Responsible Mining Assurance (IRMA) and conduct Human Rights Due Diligence (HRDD) to identify and prevent potential impacts on human rights.

3. Labor Practices

This area emphasizes creating a safe, fair, and supportive work environment—covering industrial relations, workplace safety, employee training, and social protection.

Harita Nickel implements the ISO 45001 international occupational health and safety standard. Additionally, our wage policies align with ILO Convention 131 on Minimum Wage Fixing.

4. The Environment

Companies must minimize negative environmental impacts and actively participate in natural resource conservation—including pollution control, resource efficiency, and ecosystem protection.

Harita Nickel is committed to operating with minimal environmental impact. We adopt the international standards such as ISO 14001 and the IRMA standards in our environmental management practices.

5. Fair Operating Practices

Fair business practices mean rejecting all forms of corruption, respecting the law, and promoting healthy and honest competition.

This commitment is demonstrated through our Anti-Bribery, Corruption, and Money Laundering Policy. All Harita Nickel employees receive training on this policy to ensure integrity is embedded in our corporate culture.

6. Consumer Issues

Companies are responsible for offering safe and reliable products and services, providing clear information, protecting personal data, and complying with regulations.

One of Harita Nickel’s business units, PT Halmahera Persada Lygend, has passed the Responsible Minerals Assurance Process (RMAP) audit by the Responsible Minerals Initiative (RMI). This ensures that our raw nickel materials are sourced responsibly and meet global standards.

7. Community Involvement and Development

CSR also means contributing to the social and economic well-being of local communities. This can take many forms—from education, healthcare, and skills training to infrastructure development.

Harita Nickel runs community empowerment programs across six key areas: education, healthcare, economic development, socio-cultural initiatives, environmental conservation, and infrastructure. In 2024, these efforts received an excellent community satisfaction score of 89 (based on the Community Satisfaction Index/IKM).

As illustrated, community programs are just one part of a company’s broader responsibility. True CSR integrates ethics and sustainability throughout the entire business operation.

CSR Principles

To ensure CSR is genuinely embedded in corporate culture, companies should adhere to the following principles:

  • Accountability Companies must take responsibility for the impacts of their decisions and actions on society and the environment.
  • Transparency Information about the company’s impacts, policies, and decisions should be communicated clearly, openly, and honestly.
  • Ethical Behavior Companies should always act with honesty, integrity, and fairness.
  • Respect for Stakeholder Interests Companies must understand and consider the needs and expectations of all stakeholders affected by their activities.
  • Compliance with the Law All company activities must comply with applicable laws and regulations.
  • Respect for International Norms of Behavior In addition to local laws, companies should uphold internationally recognized standards of behavior.
  • Respect for Human Rights All business activities must uphold human rights, both internally and externally.

At Harita Nickel, social and environmental responsibility is an inseparable part of how we do business. We believe that corporate success should not only be measured by financial results but also by the positive impact we create for society and the environment.

Through ethical and sustainable business practices, we are committed to delivering long-term value for all stakeholders. For more details on our progress, please refer to the Harita Nickel 2024 CSR Report.

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