Corporate Social Responsibility
Corporate Social Responsibility
In 2020, the Company continued its Corporate Social Responsibility (CSR) involvement in several social activities focusing on community development, education support and environmental preservation. Those activities were conducted through cooperative partnerships with several Indonesian NGOs to manage certain social programs, especially the donation program.
The Company sees corporate social responsibility as a company- wide effort, and it encourages and supports the engagement of employees and customers in actions and initiatives that will ultimately contribute to a more equitable and sustainable society.
Social Responsibility for Environment
As the Company’s operation is solely focused on retail and distribution, and not manufacturing, the Company tries to minimize its impact on the environment through energy efficiency and waste management measures. The Company prioritizes various environment matters at all store levels. Certain measures are taken to create better environment at the stores’ surrounding.
Use of Environment-Friendly Energy
By the end of 2020, nearly all of the Company’s stores have adopted the energy saving LED bulbs, which was initiated in 2014. This policy has successfully reduced the Company’s overall electricity usage by approximately 30%. Going forward, the Company will continue to adopt the usage of LED bulbs for new stores as well as renovated stores.
Perseroan juga telah menggunakan pendingin ramah lingkungan (freon) R404 sejak tahun 2013. Hingga saat ini, hampir 60% dari keseluruhan mesin pendingin di gerai-gerai telah menggunakan pendingin R404 tersebut.
The Company actively promotes environment preservation through recycling efforts as well as reducing the usage of plastic bags. Education to consumers was carried out through cashiers at the Company’s stores, who offer to reduce the usage of plastic bags by offering the alternative non-plastic shopping bags.
The Company’s effort to reduce the usage of plastic bag have received awards from the Ministry of Environment and Forestry Republic of Indonesia in 2015 in the regards of environment-friendly plastic bags complying to the standards of Ecolabel and Green Label Indonesia consistently.
Started on August 1, 2019, the Company further enforced its efforts to reduce the usage of plastic shopping bags in order to comply with the regulation from the Ministry of Environment and Forestry Republic of Indonesia as well as regional governments. The Company no longer offers plastic shopping bags in the regions already prohibited by the regional government, while it charges Rp200 per bag to customers in the regions still allowing paid plastic shopping bags. The information was clearly communicated to customers with stores’ signages. The Company also offers alternatives method of packaging such as providing empty cartoon box as well as promoting attractive reusable shopping bags.
Starting mid-November 2019, the reusable shopping bags are also offered with Walt Disney’s attractive characters as part of the Company’s collaboration with Walt Disney Indonesia. These new reusable shopping bags have clearly become customers’ favorites to collect while the Company would continue to offer the bags with different characters in the future. In 2020, the Company successfully sold 401,573 Disney reusable shopping bags to customers. The Company expects to be able to sell 500,000 of those shopping bags in 2021 as part of its efforts to preserve the environment.
At stores level, the Company continues its efforts for waste management and disposal through coordination with waste disposal agencies on regular and consistent basis. All stores have been equipped with integrated grease trap features to filter out the fat waste which is the primary waste from meat, bakery and RTE process. While the Company completed the development of Seawage Treatment Plant (STP), a more comprehensive waste disposal system than grease trap system, at its main stand-alone Hypermart Puri Indah West Jakarta and Hypermart Gading Serpong Tangerang stores in 2019, it also completed another STP in Hyfresh Duta Garden in 2020.
Social Responsibility for Social and Community Development
Use Of Local Workforce
The Company prioritises local hiring for employees in stores. Every Company’s store opening creates significant job opportunities which contributes to local economic growth.
Social And Community Development
The Company pays the highest attention to social development, especially on community development and education support. Not only contributing to local economic and social development by providing attractive employment opportunities, the Company also investing in empowering people and communities through various health, education and livelihood initiatives. Workshops for food handling, food safety ,food quality and other issues for SME are regularly conducted tobenefit customers with better knowledge in higher food quality delivered to customers.
Coordinating with its parent shareholder group, the Company is always at the front line in giving financial aid to schools in-need in various regions and helping victims of natural disasters. Donations are provided for schools in certain regions through financial aid, books, teaching tools and other helpful materials. In 2020, the Company continued working with its parent shareholder group in mobilizing aid for victims of natural disasters as well as donating key food necessities to its surrounding amid Covid-19 situation.
In-Store Educational CSR Fieldtrip for Children Program
The In-Store Educational CSR Fieldtrip for Children Program remains as the Company’s CSR focus. This CSR program is intended to invite children from kindergarten and elementary schools to visit nearest Hypermart, Primo and Foodmart stores, where children are encouraged to interact in basic information of hygieny, food handling, fresh products for health as well as the role and function of modern retailing within the overall distribution chain.
However, during 2020 the Company had to halt the program execution in late Q1 for the safety of all stakeholders when the Covid-19 virus started to spread in all region. As the results, there were only 30 Hypermart, Primo and Foodmart stores conducted this program in Q1 to 46 schools with participation from 2,334 children at several regions where the stores operate.
Community Engagement Activities by Employees
Through Ikatan Karyawan Matahari (IKM) and MPPA’s support, the employees voluntarily donate their time and skills to develop and implement various community engagement activities to address local issues and needs. These activities create added value for our communities, helping to earn the trust of the stakeholders to the Company.
Communication of Anti-Corruption Policy
The Company has a policy to prevent all corruption practices within all level of organization, where it is stated in the Code of Conduct Charter. The Charter is regularly disseminated to employees, management and suppliers through training and gatherings, and sets out the Company’s policies and procedures for addressing gratuities, bribery. Moreover, anti-fraud and anti-corruption policy are also communicated in these occasions.
Ensuring Supplier Responsibility
The cooperation between Company and suppliers has been conducted with applying high standard of business ethics and behavior. All suppliers and contractors are legal entities and as such are required by law to comply with minimum wage regulations and other provisions of the prevailing employment laws, environmental laws and regulations, and the laws governing business. This is stated in legally binding agreement and reviewed periodically. The Company will act firmly with termination of cooperation toward suppliers not complying with the regulations mentioned above.
Social Responsibility for Employment, Occupational Health and Safety
The Company is responsible to employees by upholding all relevant employment-related laws and regulations at local and national level, and by providing an inclusive, fair and rewarding working environment. The Company is committed to provide safe, healthy and comfortable working environment to employees. All stores, distribution centers and headquarter office are equipped with work safety tools such as sprinkler system, fire alarms and fire estinguishers, and emergency exit as well as emergency staircases. All employees at stores, distribution centers and headoffice regularly participate the fire evacuation drills and receive briefings for safe evacuation.
Social Responsibility to Customers
Customer Safety and Comfort
The Company always values customers’ safety and comfort as important priorities. Store layouts have safety standards with clear information of emergency exit and emergency staircases, fire alarms, sprinkler systems and fire estinguishers. In the regard of customer comfort, the stores’ design and layouts has bright illumination, air conditioned, wide aisles for shopping trolleys and product shelvings that put focus toward customer safety.
During the challenging Covid-19 situation in 2020, the Company took further steps to ensure customers safety by enabling strict health protocols at all stores such as body temperature checks at entrance; frequent cleaning of cashier areas & shopping baskets, use of face shields, masks and hand gloves by store employees, in-store signages for physical distancing and others.
The Company ensures that all products offered at all stores have passed certain quality standards in terms of information, ingredients, packaging and other elements. For compliance to stakeholders, the Company ensures that products being offered have certifications from the regulatory authority and include data about ingredients, expiration dates and other important information. This is a strong effort aimed at customer protection. Certain refund policies have been put in place to ensure customers’ satisfaction with all of their purchases at our stores.
Customer Complaint Mechanisms
As a retailer, the Company consistently seeks to strengthen its commitment to customers in all services and the Company’s goal is to ensure that customers are always satisfied with products and services. In the event that the customers are not satisfied for their purchases, the Company welcomes feedback that will help to improve the service level in resolving complaints. The Company has an exchange policy that allows customers to exchange certain goods for similar products within certain period.
Customers can file complaints, give feedbacks or request information about products and services through the following channels:
- In-store customer service desks in all stores during store opening hours;
- Interactional services through several social media accounts owned by the Company such as Facebook, Twitter, Instragram and others.
- Email services to firstname.lastname@example.org.
All customer feedback is logged and used as input for improvement. If a complaint or enquiry cannot be dealt directly, it will be forwarded to the relevant department to be followed up.