DIFINITION AND MEASUREMENTOF HUMAN CAPITAL

Understanding and measuring human capital. Human capital theory is a thought which considers that humans are a form of capital or capital goods as other capital goods, such as land, buildings, machinery, and so forth. Human capital can be defined as the sum total of knowledge, skill, and intelligence of the people of a country.
These investments (human capital) is done in order to obtain higher levels of consumption in the future. Despite the controversy regarding the execution of human resources as human capital have not been resolved, but some classical economists and neo-classics like Adam Smith, Von Threnen, and Alfred Marshall agreed that human capital consists of skills acquired through education and useful for all members of society. Skills is a major force for economic growth.
In addition there is still disagreement about the concept of human capital, there are also disagreements about the measurement. According to Mary Jean Bowman's dissent is based on two things: First on the issue of whether capital (human capital) as a stock (store) or as an input to production. Second, with regard to weighting. In this weighting seen any efforts to treat the quantitative measures and qualitative in units of human capital. But there is no consensus on the treatment of quantitative measurement in human capital. A pendididikan size are realized in the labor force can be used to change the quality to quantity. Educational components and then into specific variables that can be compared with physical capital, and the size of the labor force in economic growth. As a consequence, the unit of capital is defined in a limited sense, namely in the labor force, which can be measured in several ways, among others are:
1. Number of school years
2. Efficiency-equivalence units
3. Base-year lifetime earned income
4. Approximations to real cost base year
5. Current approximations to real cost
There are some problems by measuring the formation of human capital approach to cost basis. Measures of net capital formation encountered some difficulties, among others.
1. With regard to the problem of the complexity of the relationship between consumption and investment.
2. Is related to how to treat unemployment in estimating the opportunity cost.

Human Resource Development
That there are three kinds of resources, namely natural resources (natural resources), human resources (human resources), and capital resources (capital resources). What is discussed here is a human resources emphasis on human capital (human capital .) The objective of human resource development is to improve the quality and use. About this destination Statement presented briefly in Budapest and the Jakarta Plan of Action. There are two main aspects in the development of human resources, namely the micro aspect, namely that relating to personal development, and macro aspects, with respect to the means, facilities, and climate with regard to personal development.
Development effort is done through education and training. Education and Training conducted with the intent to establish, prepare, maintain, and enhance human capabilities (learners) and their usage. Therefore, the development was done at the expense of current consumption pasa ongoing development and is intended to obtain a higher level of consumption in the future, then in essence these activities is an investment, ie investment in human resources (human capital). So education and training has an important role, not only increase knowledge, but also increase work productivity. As human capital, then education is meant here is education pursued after compulsory school.
Education and training can be done outside of school, including through on-the-job training, institutional training, apprenticeship traning, and up-grading training. On the job training provided to their official status as employees. There are two forms of training that is in-service training and pre-service training. Training institutions (institutional training) is done through the organization and development of an integral system as part of the national education system. Delivery is usually done by universities. Training the technical level and training level of workers' hands. Then the apprentice training. The training is given to those who will be appointed employees / workers. Furthermore, upgrading training. The training is conducted to enhance knowledge, skills and intelligence of those who already have a specific task.
1.
1. Improving the quality of education can be implemented by setting goals and standards of educational competence through a national consensus between the government and the whole society. Standards of educational outcomes might be different between schools and between regions will generate national competency standards in the levels of minimum standards, normal (mainstream) and seeded.
2. Improved efficiency in the management of education leading to school-based education management, by giving greater confidence to the schools to optimize the resources available for meeting the educational goals that are expected
3. Increased relevance of education leading to community-based education. Increased participation of parents and the community at the policy level and operational level through a committee or school board. This committee is comprised of principals, senior teachers, parent representatives, community leaders and student representatives. The role of this committee include planning, implementation, monitoring and evaluation of school work program.
4. Equitable education services leading to an equitable education. This is regarding the implementation of the education funding formula fair and transparent, equitable distribution of quality education efforts in the presence of minimum competency standards and equitable educational services for students at all levels of society.
Compulsory Basic Education

Input, Process, and Results of Education
National education goals at the macro level is the realization of civil society as a nation and people of Indonesia with a new order of life in accordance with the mandate of the proclamation of the Republic of Indonesia through the education process. New Indonesian society has the attitude and insight of faith and high morals, freedom and democracy, tolerance and human rights menunjung and discerning and global perspective.
National education goals in micro was the realization of new human individuals who have the attitude and insight of faith and high morals, freedom and democracy, tolerance and respect for human rights, mutual understanding and global perspective.
Mission macro long-term national education is toward civil society. In the field of educational administration educational implementation of an autonomous organization, adaptability and broad but flexible, be open and oriented to the needs and interests of the nation. Balancing authority and community participation has evolved naturally. Education has held a vision of global community life, has a national commitment and act locally leads to excellence, and make the institution as a center of civilization.
Micro long-term educational mission is to prepare individuals of Indonesian society towards a civil society. Education produces individuals who are independent, faithful and devoted to God Almighty, virtuous, skilled technology and capability to act socially. Education curriculum implemented in the open so it can meet the needs of virtual and real. Education produces exemplary man with vision, commitment and discipline.
Relevance, Efficiency, Quality, Equity, and Education Policy
2. Children are the focus for the hopes of the nation, because the child is the next generation. In order for children to become the next generation who have the potential of a strong human resources, the growing development should be running optimally. And this is where the role of education.
3. Children and the future is a unity that can be realized to form a generation that needed by the nation, especially nations that are building. Increased skills, mental and moral development must be increased so did the other aspects.
4. Human quality is powerful, reliable and superior to be prepared by education, for support of livelihood that is being pursued. Superior quality in this educational process, in addition to having the characteristics of such enduring devotion to Almighty God, honesty, noble character, must be coupled with the tenacity, persistence, competitiveness, independence, courage to solve problems and deal with reality, and diligent and work hard too highly disciplined.
5. Education is a cultural process to increase the price and the dignity of the nation last a lifetime implemented within the family, school and community. Therefore, education is a shared responsibility between families, communities, and government.

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Education As the Consumption and Investment Economics

Micro economics education learn the elements of demand, supply, and price of product education services. At the request of the elements learned about how prospective students to maximize the net revenue expected lifetime. Who's on the producer, namely education units to learn about how to combine inputs in order to obtain the lowest total cost, therefore, the discussion will also be related to the discussion about education as an industry.
Education organized by educational institutions, in which educational institutions may establish one or more educational units, then this means that the institution has a position as a business entity, and education units such as elementary, junior high, high school, vocational school, and programs of study in college serves as the company (firm).
In addition, because the product of education in the form of services, it is necessary to note also about the characteristics of the service industry, in this case is education services.
Market, Demand, Supply and Education Services
Education is the overall market demand and supply on a particular type of educational services. Just as in the economic field, then the market in the education market can be divided into concrete and abstract market. Judging from its shape, the education market have in common with market competition monopoly. Talking about the education market, then at least there are two important elements, namely the education demand and supply of education.
About the education market there are several definitions. Among other things suggested by Hector Corea, he argued that the demand for education illustrates the need, and is manifested by a desire to be a specific lesson. There are several factors that affect demand for education such as cultural, political, and economic. Then, individual educational demand in the aggregate is affected by factors such as: parental income, parental education, parental employment, education, public policy (government), policy institutions, and individual perceptions of each type of education. Demand for education also depends on the perspective, that is whether education is considered as consumption, as an investment, or consumption and investment.
Educational offerings can be viewed at the macro and micro. At the macro level, the provision of education can be implemented on the basis of employment approach. Who's in micro, namely the procurement of education at the unit level of education, such as a junior, a high school education and sebagainya.Terlepas by whom it was held, then the procurement process of education should be carried out effectively and efficiently.
About the price of education. To determine the price of education services is not simple, as the price of goods. Since many components that must be calculated, including the registration fee, registration fees (BP3, etc.), money summative tests, reports money education, money re-registration, and so forth.
Then about price elasticity. The price elasticity or the elasticity of demand for education is the comparison between the relative changes of demand for educational services with relative change of the price. In accordance with its market form, ie monopolistic competition, the nature of the elasticity of demand is inelastic.
Education as Public Goods and Private Goods
Education can be a public goods and private goods can be. Public goods (public goods) is a type of goods that are needed by society, but nobody is willing to produce it. There are two main characteristics of these goods, namely nonrival consumption and non-exclusion. Based on the definition and properties of public goods, for education can be classified as public goods, it must meet the following criteria:
1. Education should be the goods / services consumption.
2. Education is needed by everyone.
3. Private parties are not willing to produce it.
4. Education, consumption has nonrival nature consumption and non-exclusion.
In accordance with these criteria, then the basic education or compulsory education consisting of primary and secondary school can be classified as public goods. There are some underlying theory of public goods. The theories put forward by Bowen, Eric Lindahl, and Samuelson. All three theories are in principle talk about how the procurement and loading costs.
Education can also be classified as private goods. Private goods (private goods) is their provision of goods is done through market mechanisms. Included in this category is at the level of education after compulsory education, namely high school (SMU and SMK), and Universities. At this level of provision of education is not only driven by motivations that are religious, and nationality, but also driven by business considerations. Thus, the presence or absence or extent of production of education is influenced by the extent of demand and revenues that may be received by the organizer / manager in the future.

Education as consumption and as an Investment
Education can be viewed as consumption, as investment and as consumption and investment are complementary. Education as consumption is education as a fundamental human right. Or is one of the democratic rights of every citizen. So until a certain level of procurement should be done by the government. Therefore, in many countries basic education (primary and secondary school) were used as compulsory education. As a consequence of education at this level of education not only as a right, but also as an obligation for every citizen at a particular age level (in Indonesia between 6 and 15 years).
In terms of the nature of needs, procurement of education at this level is a public good. Then views of motivation, then education as consumption is motivated by a desire to satisfy the need for personal development, social needs, the need for knowledge and understanding. Furthermore, the orientation time is now. Demand for education is influenced by the size of disposable income.
Education as an investment objective to obtain net income or rate of return is greater in the future. Education costs in this type of education is viewed as the amount of money bought to acquire or invest in a number of human capital (human capital) that can enlarge the economic capacity in the future. Education as an investment based on the assumption that man is a form of capital (capital) as other forms of capital that are critical to the growth of productivity of a nation. Through his investment someone can expand alternative to other activities so as to improve the welfare of his life in the future.
Education as consumption and investment are complementary.
Education after compulsory education has the aim not only to acquire knowledge, understanding, personality development, and the satisfaction of social needs (status and prestige) as well as to obtain better jobs, so it can earn net income for life is higher in the foreseeable come.
In accordance with the above description, the amount of education acquired by a person will have high impact on low income that he obtained, though not fully guarantee. But the trend is quite large.

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CORPORATE SOCIAL REAPONSIBILITY

The company has a social obligation for what is happening around the community environment. In addition to using funds from shareholders, the company also uses funds from other resources that come from the public (consumers) so that it is fair if people have certain expectations of the company.
Dauman and Hargreaves (1992) in Hasibuan (2001) states that awab liability company can be divided into three levels as follows:
1. Basic responsibility (BR)
At the first level, connecting the first responsibility of a company, which arises because the existence of such companies as; company must pay taxes, comply with the law, employment standards, and satisfy shareholders. If responsibility is not fulfilled at this level will result in very serious ang.
2. Organization responsibility (OR)
At this second level shows the company's responsibility to meet the changing needs of "stakeholders" such as employees, shareholders, and the surrounding community.

3. Sociental responses (SR)
At the third level, shows the stages when the interaction between business and other forces in society so strong that the company can grow and develop in a sustainable, engaged with what happens in the environment as a whole. Corporate responsibility is not only limited to the company's financial performance, but also must be responsible for social problems caused by operational activities by the company.
The Teuku and supplement (1997) in a Nour Cahyonowati (2003) describe social responsibility as an obligation not only organizations that provide goods and services that are good for society, but also maintain the quality of social and physical environment, and also contributed positively to the welfare of the community where they are located. Meanwhile, according to Ivan Sevic (Hasibuan, 2001) social responsibility means that companies have a responsibility in actions that affect consumers, society and environment. In addition, Weston and Brigham (1990) states that companies should play an active role in supporting the welfare of society at large. Of the three terms above can be concluded that social responsibility is a form of accountability that should be firm, for both positive and negative impacts from operational activities, and perhaps more or less
affect the internal and external community in the corporate environment. In addition to profit-oriented activities, companies need to conduct other activities, such activities to provide a safe working environment for its employees, ensure that the production process does not pollute the environment around the company, placing their honest labor, to produce a safe product for consumers, and maintaining the external environment to achieve corporate social responsibility.
1. Disclosure of Corporate Social Responsibility According to Hackston and Milne, tangggung corporate social responsibility is often referred to as corporate social responsibility or social disclosure, corporate social reporting, social reporting is a process of communicating the social and environmental impacts of economic activities of organizations of special interest groups and on society overall (Sembiring, 2005). It is the responsibility of expanding the organization in this company, beyond its traditional role to provide financial reports to the investors, especially shareholders. The expansion was made with the assumption that the company has a broader responsibility than simply seek profits for shareholders (Gray et.al (1995) in Hasibuan (2001). According to Gray in Sembiring et.al (2005) there are two approaches that significantly different in conducting research on corporate social responsibility disclosure. First, the disclosure of corporate social responsibility may be treated as a supplement of the conventional accounting activities. This approach generally will consider the financial community as the primary users of corporate social responsibility disclosure and tends to limit the perception of responsibility reported social.
The second alternative approach by putting corporate social responsibility disclosure in a testing role of information in public relations and organization. This broader view has become the main source of progress in the understanding of disclosure of corporate social responsibility and is a major source of criticism against the disclosure of corporate social responsibility Many theories explaining why companies tend to disclose information relating to the activities and the impact caused by the company them. Gray et al (1995) in Henny
and Murtanto (2001) says there are three studies are:
1. Decision usefullness studies.
Most of the studies conducted by researchers who put forward this theory have found evidence that social information needed by the users of financial statements. In this case, analysts, bankers, and other parties involved in the study were asked to perform rating on accounting information. Accounting information is not limited to accounting information tradisioanal known so far, but also other information that is relatively new in the discourse of accounting. They put information on the position of corporate social activities are moderately Important for use as consideration by the users in decision making
2. Economic theory studies
This study uses agency theory and positive accounting theory, where theory menganalogikan management as an agent of a principal. In the use of agency theory, principals interpreted as a shareholder or other traditional users. But understanding the principals expanded to all companies concerned interest groups. As a management agent will attempt to operate the company in accordance with the wishes of the public (stakeholders).
3. Social studies and political theory.
Studies in this field using the theory of stakeholders, organizational legitimacy theory, and theory of political economy. The theory assumes that the existence of the company's stakeholders are determined by parastakeholders. Companies trying to find a justification of the stakeholders in the company's operations. Resulting greater the tendency of companies to adapt themselves against the wishes of their stakeholders.
According Murtanto (2006) in Media Accounting, disclosure of company performance is often done voluntarily (voluntary disclosure) by the company. As for the reasons companies voluntarily disclose social performance, among others:
1. Internal Decision Making: Management needs information to determine the effectiveness of a particular social information in achieving the social objectives of the company. Although it is difficult to be identified and measured, but simply analissis better than nothing at all sam
2. Product Differentiation: company managers have an incentive to differentiate themselves from competitors who are not socially responsible to the public. Contemporary accounting records do not separate the costs and benefits of corporate social activity in the financial statements, so the company is not social care will look more successful than the company that cares. This encourages companies to disclose social care information so that people can distinguish them from other companies.
3. Enlightened Self Interest: companies make disclosures to maintain social harmony with the stakeholders because they can affect sales revenue and the company's stock price. Social Accountability relates also to the social contract theory. According to this theory, among the company's business and the community there is a social contract that is implicitly or explicitly. Where the social contract, social accounting is used as a series of techniques of data collection and disclosure to enable the public to evaluate the social performance of organizations in giving an assessment on the feasibility of operating the organization according to Parker (2002) in a Nour Cahyonowati (2003). In addition, corporate responsibility is needed to assess whether the activities of the company has complied with, standards and regulations. For example, on pollution, health and safety, the danger of the use of toxic materials.
At the company begin to interact and close to the outer environment (society), then the developing relationship of mutual dependence and mutual interests and objectives between the company and existing social institutions. These interactions cause the company can no longer make decisions or policies that only benefit his party alone. But the company also must consider the needs of the parties interested in the company (stakeholder needs). If the pressure from stakeholders strongly affected the continuity and performance of the company then the company should be able to arrange social and environmental policies of targeted and legitimate (Nur Cahyonowati, 2003).
2 Factors Affecting Social Disclosure
Social activities the company is one of the components used in the annual report. The absence of standards regulating the reporting of corporate social activity causing the diversity of forms of social disclosure made by the company. Each company has different policies regarding social disclosure in accordance with the characteristics of the company. This raises a problem in measuring social disclosures. Therefore, measurement of social disclosure made by using a research instrument of social disclosure items list based on research conducted by Hackston and Milne (1996) Many factors can influence the social accountability, such as company size, profitability, size of the board of commissioners, as well as profile which is considered as a variable estimators in the disclosure of social responsibility. Given the many factors that affect social pertangggungjawaban, this research will see whether the company size, profitability, size of the board of commissioners, and the types of companies will have an effect or not on social responsibility by companies.
1 Size
Company size is a variable that is widely used to explain social disclosures by the company in the annual report is made. In general, large companies will disclose more information than smaller companies. This is because large companies will face greater political risk than small firms. Theoretically, large companies will not be free from political pressure, the pressure to perform social responsibility. Greater social disclosure is a political cost reductions for the company (Hasibuan, 2001). By expressing concern for the environment through financial reporting, then the company for a long time can avoid the huge costs resulting from the demands of society.
According to Buzby (Hasibuan 2001) there are allegations that the company would reveal little of poorer quality than large companies. This is due to lack of resources and substantial funds in the Annual Report. Management concerned with reveal more would jeopardize the company's position against other competitors. The availability of resources and funds to make the company feel the need to finance the provision of information for social accountability.
In addition, larger companies tend to have a public demand for information is higher than smaller companies. Another reason is the large enterprises and have greater agency costs of course will disclose information more widely this is done to reduce agency costs incurred. More shareholders, meaning also requires more disclosure, this is because tunt

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