Corporate Social Responsibility (CSR) is increasingly considered important as part of corporate social responsibility. One of the relevant government initiatives in the context of CSR is PROPER (Corporate Performance Rating Program in Environmental Management). PROPER aims to assess and motivate companies in environmental management. This article will explain how PROPER functions within the CSR framework and how companies can utilize it to improve their environmental responsibility.
“In 2023, 1,193 eco-innovations were born by companies with a total savings of Rp. 158.54 T or 23.4% more savings than in 2022. The number of innovations also increased by 36.8% from the previous year of 872 innovations” -Sigit Reliantoro, Director General of PPKL-KLHK-
What is PROPER?
PROPER is a program launched by the Ministry of Environment and Forestry of the Republic of Indonesia to assess the performance of companies in environmental management. This program is designed to:
Assess Performance: Provide an assessment of how companies manage the environmental impacts of their operations.
Encourage Improvement: Motivate companies to improve their environmental management practices through a transparent rating system. Rewarding and Sanctioning: Rewarding companies that are committed to good environmental management and sanctioning those that do not meet the standards.
The standard criteria in PROPER are as follows:
PROPER in the Context of CSR
PROPER has an important role in Corporate Social Responsibility (CSR) because:
Encourages Continuous Improvement: With periodic assessments, companies are encouraged to make continuous improvements in their environmental management practices. This is in line with CSR principles that emphasize continuous improvement and innovation in achieving sustainability goals.
Integrating Environmental Responsibility: PROPER helps companies integrate environmental responsibility into their CSR strategy. By providing clear assessments and feedback, companies are encouraged to adopt better practices in environmental management.
Increasing Transparency: Publicly published PROPER ratings increase transparency and allow the public to evaluate company performance in terms of environmental management. This increases accountability and encourages companies to maintain high standards.