Regulation on Corporate Social and Environmental Responsibility (CSER) in Indonesia: Changing Concept of Corporate Social Responsibility (CSR) from Voluntary to Mandatory

Abstract

The research is financed by Ministry of Research, Technology and Higher Education of the Republic of Indonesia No. 180/K3/KM/2014

Abstract

The purpose of this paper is to describe the results of the research on the regulation of Corporate Social Responsibility (CSR) in Indonesia as well as its development, as regulated in Chapter V - Article 74 of Law No. 40 of 2007, using the term Corporate Social and Environmental Responsibility (CSER). The research method employed is legal research, which is analyzed prescriptively, to produce novelty about alterations in the concept and regulation of CSER which is in force Indonesia, changed from voluntary (morale obligation) to mandatory (legal obligation). The existence of the CSER regulation, which has been passed by the Government and House of Representatives, is intended to improve the welfare of society in its environment. Moreover, it is intended to create legal certainty regarding the implementation of CSER for limited liability companies running their business activities in the field of and/or related to natural resources. However, the existence of such regulations is not without problems, which will be discussed in this paper.

Keywords: CSER, Voluntary, Mandatory, Changing Concept

DOI: 10.7176/JLPG/81-09