Sustainable Development Goals (SDGs) have been the global endeavor in continuing the improvement of Millennium Development Goals—launched in 2015 and expected to commence till 2030. The targets of these SDGs lie in the areas of people, planet, prosperity, peace, and partnership. The last key is the missing puzzle to realize these action plan provided by the data and analysis in the implementation of SDGs by far.
SDGs are long term goals in which the roles of multiple stakeholders play important part in the implementation. Collaboration and synergies are evident to execute the action plans and achieve the goals since they lie in such a complex and multidisciplinary framework. These cannot be achieved by government solely or any individual without collaboration among the stakeholders in order to be effectively implemented.
SDGs integrate the balance of multiple dimensions in term of economic, environmental, and social sectors. These dimensions are inter-related and become the foundation of sustainability. Thus, in achieving the needs of the current generation without compromising the future generations in terms of economic, environmental, and social dimensions; SDGs are the universal mutual goals to be implemented.
In achieving the SDGs which are embodied in the 17 specific goals, business plays a significant big role in the economy, environment, and social. Corporations are the world business players that have significant impacts in shaping the global economy. The business operations with their supply chain affect severe impacts in terms of environments and society. The stakeholder theory suggests how business creates values to its stakeholders in order to sustain. Moreover, there has been a high consideration in the global business that the business operations affect significantly to the sustainability. Thus, there has been high pressure to corporations to be aware of their impacts not only in the economic terms, but also in the social and environmental implications.
The high consideration of the global citizens towards the sustainability impacts of the corporations create more corporate philanthropy in the business sectors. The corporate social responsibility (CSR) has become the competitive advantage and the means of corporations to cope with the issues. More and more corporations implement CSR. The implementation of CSR has been growing not only in numbers but also in the quality, for instance CSR has been considered as social investment instead of cost. This further transforms the mindset of traditional CSR as merely corporate philanthropy into a contemporary CSR which requires integration of CSR into the business value chains and corporate strategy. This is to answer the lack of CSR alignment to the corporate nature shown by the indication of CSR implementation as sidecar (side project) beside the corporate core business. Therefore, by integrating CSR into the business value chain and strategy, corporations are expected to effectively foster the implementation of SDG by integrating social values into the business value chain.
Research conducted by Hivos and Jembatan Tiga in 2011 show that CSR realization in Indonesia is still low though there is improvement of CSR budget allocation in numbers from year to year. Many corporations achieve CSR realization at the level of under 50 percent realization. Thus, the implementation of CSR is considered as ineffective.
Beside the ineffectiveness of CSR implementation in Indonesia, corporate awareness in disclosing its sustainability performance is still low. According to the study of OJK in 2017, only 9 percent of publicly listed companies have published sustainability report. This is understandable as the disclosure of CSR in Indonesia is still voluntary. However, the government has released the regulations that require the responsibility of conducting CSR to corporations listed in the IDX since 2007. Hopefully, more rigid regulation and comprehensive implementation of CSR disclosure will be developed in the future.
The importance of collaboration is shown by the term of partnership as the foundation of SDGs. Moreover, it has been analyzed that the overlapping and some counter-productive activities and operations of every element (stakeholder) could hinder the implementation of CSR in achieving SDGs.
The gap in the effectiveness of CSR implementation in Indonesia can be achieved by fostering collaborations among stakeholders. Government, corporations, academic institution (universities), social enterprises, and the third sector such as civil society organization and the NGOs should work together hand in hand and create more synergy in order to achieve more collaboration which will improve the effectiveness of CSR.
Government plays role in the policy sector and top down approach. Corporations rule the global economy through its value chain and significant impacts to sustainability by implementing value creation and more sustainable practice, for instance providing more of social empowerment fund in their CSR and establish environmental friendly business conducts. Social enterprises should collaborate more in creating massive impacts through their embodied social values and by their limited capacity. Academic institution provides learning center and human resources center to internalize sustainability values and principles as well as in the development of the scientific findings in support with the SDGs. The third sector such as non-profit organizations, NGOs, think thanks, and other social movements in the society can foster and bridge the gap of needs vs demands and the roles of other stakeholders in order to build sustainable collaboration.