Sacrifice Profits in the Social Interest

September 8, 2008

Different organization will have different definition of Corporate Social Responsibility (CSR), even though there is a considerable common ground between them. A simple definition of Corporate Social Responsibility is adopted from Elhauge (2005): Sacrifice profit in the social interest. There is no distinguish between developed and developing countries in CSR activities contributed by companies organizations through community development. Contribution in developing environmental community should involve company and their stakeholders while increasing their benefit as much money as they could. As a result companies should be able to answer a big question whether they have the continuing commitment to behave ethically and to contribute to economic development while improving the quality of life of the local community and social at large. The core of this topic is CSR talks about giving back companys’ profit to society. Describing about Corporate Social Responsibility should be engaged the main stakeholders not only customers and investor, but also employees, suppliers, communities, regulators and society as a whole. Second commitment beyond maximizing their profit, company should manage the economic, social and environmental impacts of their operations to maximize benefit. May firms sacrifice companys’ profit in the social interest? The answer depends on the willingness of business scholars in building community and developing environmental society.

The restrictive question raising beyond the definition of CSR should be addressed is: under what conditions is it economically feasible for firms to sacrifice profits in the social interest? Borck, Coglianese, and Nash (2006) describe whether firms undertake CSR actions voluntarily or reluctant, their economics sustainability depends on the market pressure and social expectation confronted by firm. It is really hard for firm pay more attention in CSR since their main duty is to maximize their profit. The first side that could be possible to act in CSR is voluntarily CSR in which some observer would think of as the purest from of CSR. The shareholders may be willing to subsidize firms’ profit sacrificing behavior. It depends on the investors whether they are willing to fund CSR activities or not. There is a consequence since they could accept the lower return because firm has already enjoyed of their economic position. Investors sacrificing profit may still earn return above the market norm. Jensen et al. (2002) has an evidence suggest that some individuals should pay more for social responsibility goods. He shows that ‘ethical investor’ could have consequences for firm for do not involve in CSR. On the other side, there is a reluctant CSR. The decision is not by the firm but made by individual managers or directors. The investors may be forced to accept profit-sacrificing activities caused by external constraints such as environmental regulatory particularly in developing countries. observation of ‘satisfice’ profit to be sacrificed should be observed since the magnitude of profit determine employee compensation structure.

In many cases, CSR activities is costly for firms. To involve in it, firms would accept lower cost for their operational production. The next sub sequence is the firm will raise their price and reduce their wage, accept smaller profit and also accept some economic consequences in decreasing their cost. In short term, economic consequences may include increased insurance, borrowing and loss of market share. In the long term, firm may face share holder litigation and corporate takeover (Alchian 1950;Altman 1999). Engaging in CSR activities depend on the managers or shareholders besides ethical belief, contracts and their goals. A variety of factors influence the firms who make decision about engaging in CSR activities such as managerial incentive, firm culture, organizational structure and monitoring constraints. Howard-Grenville, Nash, and Coglianese (2006) showed their evidence the significant effects of organizational culture in CSR activities. Identity of the firm determines how individual within the firm view the purpose of the firm. Firm size also determines whether they will sacrifice their profit. Firms would not involve in CSR if their work provides no scope for it.

Passing Time

July 12, 2008

It was Friday afternoon, as soon as I woke up at 4.00pm. I was lying in my bed while watching TV show and opening my cell phone messages. My next door showed up in the gate and gave an invitation for Sarturday evening monthly meeting. I could not give any comment whether I would come. I turned back to my room, Santi did not send any message at all on my cell phone. I wondered why since She would like to see me at 7.00. When I went outside, It’s warm enough to leave my coat open. I turned to the kitchen, drank my soft drink provided by my wife yesterday and thought of my activities this evening. She’s already in her parent right now and I felt strange at my own home, alone.

I left my home at 7.00pm, found out some thing to eat for meal, visited some friends since it was possible time as well. The twin? the Florist? My parents? Thought for visiting some of my friends crossed my mind which one should I choose while piercing of the dusk wind by riding my bike and going to the down town of my lovely small city. I had to dine out tonight. I stopped by at a recognizable place when I used to spend my time with my girl friend for dinning out about six or seven years ago. A few step farther than the sidewalk, I saw another woman was getting off of her motorbike, taking off her helmet and shaking out her hair. “Seven point five”, I gave her my point from inside of my heart. Remember who you are, I told to my self.

I decided to pass my time in a book store, stared at around the corner and pretended to be a seriously curious man who were looking for a book. Picked and put it one and another again and again for a moment. My mind was far away from this store when I was a stupid student in my second home land. It was really difficult time to pass my time in a book store at there. All of the stores had been closed in the late afternoon and I had to stay in my room, reading my material lectures all night long almost everyday even in my weekend. I prefer like watch any movie show if I had got stuck in my brain than met my friends. I also remembered one of my friend who showed up at my door in the mids of the night and beg to stay in my apartment for one night only with her heavy luggage in her hands. She did not care of my bustle and wondering eye. It was definitely insane because of wondering how she could get my apartment from hers in the cold of winter at 2am. There was no time for denying, no argument, no extreme response, nothing at all. I just let her stay and I turned back to my writing of my research project.

Saturday early morning, the sun began to glow its dawn sunlight. I was staring at my children picture when my cell phone was ringing. It’s from my mother and asked whether I should go to Jogja. Well, I missed my son and his sister. It was not as easy as I’d expected to spend my days without them, as if I saw my future in their innocent smile.

The First Goal of MDGs in Africa Plain

July 9, 2008

The newest paper of International Poverty Center today released by United Nation reviews the growth, employment and poverty records in Gambia. The second important thing we have to know is explanation of macroeconomic trend and the structure of labor market as a part of policies of the government help us in understanding why the stagnation of poverty still occurs. The growth pattern of the Gambia does not pro poor and the quality of employment is very low to increase productivity. A formidable challenge of Gambia situation in improving productivity and providing better quality employment has become inevitable lesson for the world since the first of Millennium Development Goals says to reduce by half the proportion of people living on extreme poverty and hunger in 2015.

Millennium Development Goals had been released by United Nation and signed by 189 head of states and governments during Millennium Summit in 2000. Eradicating poverty and hunger becomes the first priority of MDGs goal since extreme poverty still exists in developing countries, particularly in Africa. In this plain, primary source of their household income relies on employment and farming land. Education which has become second priority of MDGs plays an important role for African productivity to give a significant contribution of economic growth. And now, MDGs has been running for eight years after its declaration. At this critical time, there was a consensus in Japan for achieving the MDGs in Africa to discuss how to speed up poverty reduction. Among the developing countries in Africa plain, Ghana would be the first country which have achieved Millennium development Goals of halving poverty in 2015, even though there should need to take steps since high infant mortality and high maternal mortality is the biggest problem to solve. They suggest that increasing in agricultural production as a way to achieve economic growth that would decrease number of poverty. Importantly, poor people need to improve accessing clean water, increasing school enrollment and expanding HIV/AIDS treatment in decreasing mortality and also to enhance individual skill in farming land and capabilities of personal capacity to improve agricultural production in other sides. Increasing commitment to domestic resource mobilization, improving governance and better policy performance and also solid efforts by African Government are needed to help Africa in fighting against poverty to achieve MDGs in 2015.

Social Protection: Lessons from Latin America

July 4, 2008

Social protection policy consists of policy designed to reduce poverty around the world. The main area in social protections are: child protection, labor market, social insurance, and social assistance. Those main area should help people to protect themselves against hazard of income. Mexico is the first country implemented social protection in 1997 by using cash transfer scheme associated by Latin America countries and Africa plain. The main aims is to enhance the capabilities of the members to reach better level in their life quality.

Mexican Government decided to implement progresa programme as a radical change and a new strategy in poverty alleviation in Mexico. The principal goal was to permanently increase the basic capabilities of individual living in extreme poverty, particularly in rural area. Progresa had already had an important impact in poverty alleviation. In a sample of progresa communities, the percentage of households in poverty according to the headcount showed a reduction from 52% to 38%. In 2002 progresa was changed oportuninades in which to broaden of cash transfer scheme. Oportuninades focused on helping poor families in rural and urban communities. It invested in human capital by improving education, health and nutrition of children through providing cash transfer to households. The result of the evaluation of oportuninades showed that after three years, poor Mexican children living in the rural areas where the programme operates have increased their school enrollment and receive more medical attention.

In 2001 another social protection called Bolsa Escola was created by Brazil’s Government and it was administered by Ministry of Education. Its conditionality stipulated school attendance for school-age children in families whose per capita income was below R$ 90. Instead of Bolsa Escola, there is Bolsa Alimentacao run by Ministry of Health which focused on medical check-up for pregnant woman, immunization of young children (up to six years of age). Carto Alimentacao was created in 2003 with a transfer of R$50 for families with monthly per capita income below half of minimum wage. In October 2003, Bolsa Familia was created to merge and organize the various Federal Conditional Cash Transfers. It divided poverty in two parts: Extreme poverty and Moderate Poverty in which received different monthly amount per each. The beneficiary identification process of Bolsa Familia was very complicated since Brazil’ s was decentralized government while responsibility designing policy belongs to the Central Government.

Chile Solidario was created in 2002 which targeted to cover people living in extreme poverty family in Chile. It has three component: Monetary Subsidy, Family Support and Conditional Cash Transfers, and Priority access to other social protection programmes. Conditional Cash Transfers responsibility belongs to Central Government to deliver the family support for two years. In the implementation, families were visited by social assistant to set up family plan and tackle major problems in several areas including accessing public service, health aids, and employment. Chile was very different from Mexico and Brazil in which implement the similar policy in social protection programme. Eventhough Conditional Cash Transfer was helpful in poverty alleviation, according Gini Coefficient, Conditional Cash Transfers scheme had no impact in reducing income inequality in this country.

Scholarship for the rich

July 2, 2008

In Millennium Development Goals campaign says: “The MDGs are still achievable if we act now”. One of the target is to achieve universal primary education. United Nation gives a big concern in decreasing productivity in Africa where number of poverty increase year by year. It is very interesting if we give more attention in their campaign to pursue the second goal of MDGs. The most important in their statement is: every human being should have opportunity to make a better life for themselves. Unfortunately, too many children in Indonesia grow up without this chance. They have to stay in the midst of the battle in the real life to keep surviving for their life in this universe with lack of nutrition. So many sad stories we can hear in this country tell us about hunger and poverty until their death. The big question in Indonesia is: Has indonesia tried to fight against its poverty ? The policy from government always said that they have already tried every year. They never doubt to give a blue print of their policy in determining a scheme in decreasing number of poverty.

Increasing world oil price have worsen Indonesian economy. The poor is to be more poor since Indonesian Government announce a new oil price. Children always consume bad nutrition caused by lack of food. Education is more expensive to reach. Good education in Indonesia spend much money. As a result they can not go to school, even to reach primary education for their future. They prefer spend their time for work rather than to school. A new strategy given by central government does not give positive impact on children circumstances. Generally, government would like to give scholarship to children only for those who have outstanding achievement. Government policy has no impact since outstanding achievement can be reached by children who consume good nutrition meanwhile good nutrition is very expensive for people who live in minimum wage. Poor people is always haunted by poverty trap and they are threated to stay live in poverty forever.

Primary education is very sophisticated for poor people and impossible to attain. The second goal of MDGs is to increase number of student enrollment about 50% around the world. This is really too ambitious vision particularly in Indonesia where number of poverty increase caused by many factors. High education face the same situation where study in university is outrageous. Developing in Information Technology and Computers (ICTs) around the local government hopefully helps poor students to access new information to find some scholarships to increase their capacity. Unfortunately, ICTs is very expensive as well. Besides, there is a big limitation in accessing internet connection particularly for those who live in rural area. Internet can be access by student with much money because they have to pay some money to access internet connection. Secondly, student should be able to speak english fluently when they try to find foreign scholarship. Developed country offers many scholarships for Indonesian student. But English, is not as easy as other people think. For those who has no english toefl score and live in rural area, it could be a new homework for them because they have to go to the institution who hold english test with pay much money. There is no free charge even though you smart with the most outstanding student predicate in your graduation day.

Simply word, no money no study.

-Dj-

Finding IP Address and Connecting Microsoft SQL Server By Using Microsoft Visual Foxpro

May 26, 2008

This technique only demonstrates how to detect internet protocol address connected to our computer network by using Visual Foxpro. It’s not to attempt to use Microsoft SQL server database in manipulating database table as well, but it’s possible if you would like to modify MS-SQL in Visual Foxpro script program. For the beginner in programming, it is not so difficult to follow and you could develop it as you wish. I will not exploit SQL server script since it can be used in other language computer programs.

All of the script below had been tested in computer network (by using ip address number) or you could examine for pinging world wide web address as well. The last script in this article is the most important thing if you would like to learn about Visul Foxpro Library. I suggest you to read deeply the manual given by Microsoft.

ipServer = “192.168.7.101″ &&& or “www.kompas.com”
msDosCmd= “%comspec% /c ping ” +ipServer+ ” -n 1 > test.txt”
loWshShell = CREATEOBJECT(“WScript.Shell”)
loWshShell.RUN(msDosCmd, 0, .T.)
DocPing=filetostr(“test.txt”)
=MESSAGEBOX(DocPing)

It detects only a single ip address: 192.168.7.101. A small modification of the script could be tried in finding some IP addresses. You can the script below to detect computers connected to you computer since you know ip address number in your computer network.

DO WHILE !EOF()
ipServer=xxipServer
msDosCmd = “%comspec% /c ping ” + ipServer + ” -n 1 > test.txt”
loWshShell = CREATEOBJECT(“WScript.Shell”)
loWshShell.RUN(msDosCmd, 0, .T.)
IF SUBSTR(FILETOSTR(“test.txt”),274,1)=’0′
?ServerName+’ connection failed’
ELSE
?ServerName+’ connected’
ENDIF
ENDDO

The last result of the script is “test.txt” in which the result would display whether the ip address connected or not. Thus, you can use another method in determining computer connection better than “substr(filetostr(‘xx’,274,1)=’0’” usage (!). You could miss some nodes, obviously, I can use it properly so far J.

The second stage, you can ignore it if you don’t like, we attempt to connect MS-SQL Database Server. As a result, there are second step in connecting MS-SQL server database, firstly, detecting ip server address and secondly, connecting to your database server. As I said above,”you can ignore it” because this step is wasting time when you were writing this script because you have to detect ip server and you also have to detect database server. The big question is: Is it possible to connect to our database server without detecting ip server? It could be, but the problem is you will take much longer when your database connection is failed. The computer would say nothing for a few second when your database server is broken or you ip address undetected. By detecting ip address we can ignore database server detection. When server connection is failed, it would be better if you ignore the second step directly. The best performance for this script is more than twenty node computer workstation. A hundred would be much better.

USE Server in 01 alias SERVER
….
DO WHILE !EOF()
DosCmd = “%comspec% /c ping ” + ipServer + ” -n 1 > test.txt”
loWshShell = CREATEOBJECT(“WScript.Shell”)
loWshShell.RUN(DosCmd, 0, .T.)
IF SUBSTR(FILETOSTR(“test.txt”),274,1)=’0′
?ServerName+” connection failed”
ELSE
LcConn=”driver= {SQLServer};server=”+ipServer+”;dsn=”+dsnName+”;database=”+DataBaseName+”;uid=sa;pwd=”
DBConn=SQLSTRINGCONNECT(LcConn)
IF DBConn < 0
?’Connection failed’
RETURN .F.
ELSE
SQLText=”<SQL SCRIPT>”
xx=SQLEXEC(DBConn,SQLText)
=SQLDISCONNECT(DBConn)
ENDIF
ENDIF
SELECT SERVER
SKIP
LOOP
ENDDO

The simplest thing that you can do in finding IP Address is by using win32_pingstatus class provided by Microsoft. Win32_pingstatus represents ping standard command but, unfortunately, it does not work in Windows 2000 and Windows NT Server. You could modify the simple script syntax below in trying ping command in Visual Foxpro.

Local vWM, vAddr, vPinging, vPing, vNetCon
vAddr = “192.168.1.1″
vWinS = createobject(“MSWinsock.Winsock”)
YourComputerIpAddress=vWinS.LocalIP
vPinging = vWMI.ExecQuery([Select * from WIN32_Pingstatus where address='] + vAddr + ['])
for each vPinging in vPing
if vNetConn>0
messagebox(“ IPAddress 192.168.1.1 “+vNetStatus+” “,16,0)
vNetConn=0
return
endif
next

Modification of the script above could be done, particularly in using SQL script in manipulating your transaction table. Please notify that I use Microsoft SQL server 2000 and Microsoft Visual Foxpro V9 in demonstrating the script.

Best.

Dari Puspanjolo

May 23, 2008

Puspanjolo, berdasar perangkat lunak google earth, lokasinya berada di 6″58′xx’.xx”S dan 110″23′xx’.xx”E. Cuman itu yang bisa kutulis sebagai informasi tentang wilayah Puspanjolo dari atas ketinggian 300 kaki. Lokasinya menarik? Tidak begitu. Masih banyak lokasi menarik di kota Semarang. Tetapi kalau ada yang mau berkunjung, dengan senang hati dan tangan terbuka lebar. Masyarakatnya cukup bersahabat untuk dijadikan sahabat, cukup bermusuhan juga kalau ada yang mau cari musuh disitu. Wilayahnya tergolong padat dengan popuaisi yang semakin meningkat. Maklum, program Keluarga Berencana yang dicanangkan rezim Orde Baru belum sempat terlaksana saat masyarakat ini tumbuh di awal tahun 70an. Berkembang sebagai masyarakat menengah ke bawah, tentulah hanya sedikit yang berpendidikan tinggi, apalagi kaya raya. Hingga saat ini, masih cukup banyak anak muda yang tinggal di Puspanjolo, meskipun sebagian besar adalah para orang tua yang sudah pensiun setelah berjuang demi kehidupan mereka. Anak muda sudah pada gede dan ingin merantau ke tempat lain yang jauh lebih banyak tantangan yang berbaur dengan pantangan. Setiap kali musim mudik, terutama lebaran, banyaklah mobil mobil beridentitas luar kota Semarang.

Di jaman koloni belanda, wilayah ini merupakan wilayah penampungan genangan banjir setelah dibangun kanal oleh pemerintah Koloni Belanda. Banjir besar dan menenggelamkan wilayah puspanjolo terjadi tahun 1970 dan 1990 sebagai akibat kutukan imbas dari kepercayaan orang Puspanjolo sendiri bahwa banjir itu adalah banjir musiman duapuluhtahunan. Seharusnya itu tidak terjadi kalau mereka tidak percaya. Sampai awal tahun 90an, wilayah ini memang hanya areal persawahan dan perkebunan dengan air irigasi dari Sungai Banjir Kanal barat. Jadi wajar kalau banjir masih menghinggapi puspanjolo sampai hampir satu abad lamanya, karena sungai ini juga bersemangat untuk ‘mengairi’ wilayahnya. Paling tidak, hal ini sebagai upacara peringatan bahwa wilayah ini dahulunya adalah persawahan dan Banjir Kanal Barat sebagai sumber kehidupan. Bendungan Kali Garang yang berlokasi sebelah tenggara Puspanjolo malah lebih nggegirisi sebagai ‘penunggu’ puspanjolo. Jika air dari Semarang atas tidak dapat ditahannya, maka dengan riang gembira air akan dialirkan ke wilayah puspanjolo tanpa sensor melalui Banjir Kanal Barat. Tidak peduli air itu bercampur lumpur, kotoran manusia maupun binatang, sisa makanan, dedaunan, bangkai ayam maupun bangkai babi, semua diaduk jadi satu lalu dikasihkan dengan sukarela kepada masyarakat Puspanjolo untuk segala keperluan baik nyuci pakaian, minum plus makan, atau bahkan air itu dibiarkan saja oleh rakyat setempat. Bahkan air yang dialirkan oleh perusahaan pengelolaan juga berasal dari air sungai ini.

Sekarang, Puspanjolo dengan segala kekiniannya, sudah siap-siap ditinggalkan oleh ‘penghuni utamanya’ yang (mungkin) sudah ketinggalan jaman. Anak2 yang suka bikin mobil2an dari gabus plus sandal jepit sudah lenyap digusur mainan plastik sumber limbah. Kawula muda yang tergabung dalam karawada (Keluarga Remaja RW dua) dan saingannya KRC (Keluarga Remaja Cabean) yang terdiri anak muda yang siap ngejar maling tengah malam kian hilang cari uang. Dan yang lebih kurang ajar, beberapa diantara anak muda ini sudah ada yang menghadap Sang Pencipta mendahului kawan sebayanya. Wilayah Bongsari, yang berada di sebelah selatan Puspanjolo, yang sampai pertengahan 85an hanyalah hutan belantara yang dihuni dedemit dan keturunannya, sekarang sudah dihuni manusia rasional yang juga siap gebuk2an kalau diperlukan. Jalanan sepanjang Puspanjolo raya yang dulu hanya beralas tanah becek tak karuan nan sunyi senyap, sekarang berlalu lalang kendaraan dengan pengemudinya hanya ada dua jenis: jenis pertama adalah supir asli Puspanjolo, jenis kedua adalah supir gila. Dari supir kalem sampai gemar trek2an ada semua.
Tahun 2000an, Puspanjolo sudah berada di wilayah yang mudah sekali diakses dari semua penjuru kota. Sayang sekali, gerobak sapi tempat saya numpang kalo ke sekolah sudah tak ada. Tanah tempat main kelereng sudah habis ditimbun aspal. Langit bebas hambatan kalau main layang2 sudah bertebaran kabel gak karuan. Bagaimanapun juga, Puspanjolo tetap dalam ingatan.

Puspanjolo, 2008


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