Company's Responsibility on Corporate Social Responsibility (CSR): Legal Arrangements and Their Consequences in the Sectors of Economics and Environment in Indonesia

摘要

Every company in Indonesia has an obligation to carry out a social and environmental responsibility, or on the other words it is known as Corporate Social Responsibility (CSR) as regulated in Law Number 40 of 2007 which concerns on 'Limited Liability Companies'. The problem that arises is that when the law only appears as to fulfill an obligation, however, regarding the sanctions, they are not clearly regulated in other related laws/regulations, though there is only an obscurity even overlapping the regulations governing this matter. The method used in this study was literature study. The results of this study showed that regarding to Corporate Social Responsibility (CSR) there are some rules that governs on corporate responsibility in the sectors of economic and environmental but only restricted to the form of moral roles. In addition, there is still a lack of level of corporate initiative in implementing Corporate Social Responsibility (CSR) hence, legal arrangements and consequences related to the implementation of Corporate Social Responsibility (CSR) need to be updated by adding and affirming sanctions in the form of fines against companies that do not implement Corporate Social Responsibility (CSR) in the economic field and environment. The sanctions can be in the form of fines in the form of compensation when not implementing CSR or social and moral sanctions in the form of community initiatives not to buy or use the company's products and eliminate pride in the company. Moreover, it is expected that the implementation of Corporate Social Responsibility (CSR) in Indonesia can run effectively and help to realize the prosperity of the Indonesian peoples based on the basic principles of economic development stated in Article 27 and Article 33 of the 1945 Constitution.