Your CSR Says a Lot About You
Figure 1. CSR maturity table
In our previous article, “What Gets Measured Isn’t Always Managed,” we asked whether your CSR was more ceremony than substance. We gave you the data, the drama, and most importantly a simple self-assessment. Now that you’ve stared into that maturity mirror, let’s talk about what it actually reflects.
If most of your answers fall under Answer I or II or III, then:
Answer 1 – CSR as costume. At this stage, CSR is about doing what’s required. You comply with the law, maybe because of UU PT No. 40/2007, or PP No. 47/2012 on TJSL. And that’s fair. But your programs are still charity-driven, often disconnected from business goals, and rarely evaluated for impact. It’s CSR as “goodwill compliance”, helpful, but shallow.
Answer 2 – CSR as script. You’ve read the POJK. You submit sustainability reports. You probably have a section called “Community Development” in your annual plan. Great start, but CSR is still a checklist, not a compass. There’s some structure, but the ‘why’ and the ‘so what’ remain blurry. You're doing the job, but not changing the game.
Answer 3 – CSR as strategy. Welcome to the rare league. Here, CSR isn’t an expense, it’s an investment. It links to your core business, speaks the language of SDGs, and comes with data you actually use. Outcomes are tracked. Impact is measured. And CSR becomes a lever for brand equity, trust, and even revenue.
What Makes a Level 3 CSR?
So, what does strategic and impactful CSR actually look like? Here's the checklist of what sets Level 3 apart from the rest. No fluff, just real-world indicators:
1. Rooted in strategic business issues. At Level 3, CSR isn’t an add-on. It’s aligned with your company’s core vision, mission, and strategic direction. Programs are designed not only to address internal priorities but also to align with broader frameworks like the Sustainable Development Goals (SDGs) and the Regional Medium-Term Development Plan (RPJMD) where the company operates. This ensures your CSR initiatives are not just legally compliant but they contribute meaningfully to both business resilience and national development goals.
2. Targets key local stakeholders. Forget vague “community engagement.” Level 3 is laser-focused. It clearly identifies who the real stakeholders are (employees, suppliers, smallholders, youth, women, disabled groups, etc.) and centers the program around their role in the ecosystem, not just their proximity to the company
3. Relevant and based on real needs. Programs are designed after listening, not assuming. That means conducting proper social mapping, FGDs, and needs assessments to avoid delivering one-size-fits-all solutions that miss the mark. When CSR ignores local context, it loses legitimacy and sometimes backfires. A real example? In 2025, residents of Tondo Village, Morowali, returned a CSR donation from PT IHIP: cooking equipment that had nothing to do with their livelihood. Why? Because no one had asked what they actually needed. Relevance isn’t a nice-to-have, it’s the bare minimum.
4. Not charity. It’s long-term value creation. Level 3 moves away from ceremonial donations or seasonal activities. No more “baksos-for-the-sake-of-report.” It focuses on building systems that stick, not just moments that feel nice.
5. Builds capacity and self-reliance. A good program doesn’t just help, it helps people help themselves. That means building skills, networks, or market access that gradually reduce dependency over time. It’s empowerment, not entitlement. Remember: we’re here to build communities that can stand on their own, not create a line of people waiting on us.
6. Comes with a development roadmap. Yes, there's a plan. And not just for this year’s report. There’s a multi-year roadmap with targets, milestones, and even exit strategies. CSR becomes a journey, not a PR stunt.
In brief, this is like building an ecosystem that still works even when you’re no longer there. Your intervention shrinks, the impact sustains and that gives you room to focus on bigger goals, like scaling or replicating the program elsewhere.
Why Measuring Impact Isn’t Optional Anymore
Let’s be clear. Doing CSR without measuring its impact is like throwing seeds into the wind and hoping for a forest. It might make you feel good, but you’ll never know if it actually worked.
And the pressure’s not just moral anymore, regulations are catching up too. For example, PermenLHK No. 1/2021 under the PROPER framework explicitly requires companies to assess and report the actual environmental and social impact of their CSR activities. In short, it’s no longer enough to say you did something, you need to show what changed.
You might be thinking: “Shouldn’t we measure the impact after the program’s done? Maybe a year or two later?” Sorry, but nope. You don’t wait until the end to start measuring. You begin from the very start.
From the moment you design the program, measurement is already in motion. And here’s how it should look:
Figure 2. 4 Phase of CSR Management
You must be thinking, “Why SROI?”
Because this tool isn’t just a recommendation, it's an obligation. SROI is now part of the impact evaluation criteria in the PROPER assessment under PermenLHK No. 1/2021. If you're aiming for credible CSR, you can't afford to skip it.
CASE STUDY: Good Mining, Measured CSR
In 2023, Proxima Research evaluated the CSR performance of a major mining company in Kalimantan. The goal: not just to document activities, but to measure public perception and investment return. Here’s what happened when impact met structure:
1. Situation Analysis: Local voices first.
The area had potential, but also real, voiced needs. Residents lacked the skills and tools for hygienic food production, despite having micro-business potential in banana farming, woven crafts, and small-scale snacks. The first step? Listen. Map the ecosystem. No assumptions.
2. Planning: Build what they actually need.
Instead of generic donations, the program offered targeted packaging design training and business support for local MSMEs (UMKM). It wasn’t about charity, it was about unlocking market access. Investment: Rp 65.2 million
3. Implementation & Evaluation: And then what happened?
In short, this wasn’t just CSR for the report. This was measurable value creation for the community and the company’s reputation. And it all started by treating CSR as a strategy, not a ceremony.
Let’s Be Honest, What Do You Get From All This?
Plenty and it’s more than just a line in your annual report. Here's what credible, measurable CSR actually unlocks:
Direct Economic & Financial Benefits
Strategic & Social Benefits
It's Time to Make Your CSR Count
You’ve assessed where you stand. You’ve seen what strategic CSR looks like. And now, you know what’s at stake: reputation, relevance, and real impact.
If you’re ready to stop guessing and start measuring, then it’s time to get to know SROI, not as a buzzword, but as a decision-making tool that gives your CSR real value. Watch here. 👇
Official Address:
Komplek Royal Palace, Blok B No. 24
Jl. Prof. Dr. Soepomo No.178A, Menteng Dalam, Tebet, Jakarta Selatan 12870
Copyright © 2025 Proxima Research. All Rights Reserved