BUSINESS ETHICS AND GOOD CORPORATE GOVERNANCE IN RELEVANCE IMPLEMENTATION OF THE COMPANY'S SOCIAL RESPONSIBILITY

Judiatin Rachmiarti Kusumah

doi:10.31933/dijemss.v1i6.461

Abstract

The challenges for companies are getting bigger today. CSR is used as a guideline for corporate strategy to take the interests of all stakeholders into account. The application of CSR has to do with how the company is well managed and managed (GCG). The implementation of GCG has a positive effect on the business environment of a company and has a positive effect on the company as investors increasingly trust the company. CSR develops because the long-term sustainability of the company is more important than just profitability. Companies have social and ecological responsibility for ethical behavior, which is referred to as corporate social responsibility (CSR) or corporate citizenship. Corporate Social Responsibility (CSR) is a company's commitment to the conduct of its business. It aims not only to increase the company's financial profit, but also to build a sustainable socio-economy. It can be concluded that the fundamental aspect of implementing CSR for the company is a form of the company's commitment to the well-being of employees and their families, the surrounding community (local) and in particular the entire community and that the implementation takes place in a sustainable manner. This paper is intended to provide an overview of the implementation of corporate social responsibility with its relevance to business ethics and good corporate governance in Indonesia. The research method used is a library and observation method based on the author's experience in dealing with PT XYZ Raya, one of the national companies for paints and chemicals, as a supplier of various types of colors

Highlights

The term corporate governance means "corporate management" or "corporate governance"
According to the two experts, the definition of good corporate governance (GCG), as defined by the UK Cadbury Committee in Sukrisno Agoes (2011: 101), provides an understanding that GCG is good corporate governance, which is the relationship between Shareholders and management of the company regulates For creditors, the government, employees and other internal and external stakeholders, this rule applies to all of their rights and obligations
From some of the meanings mentioned above, it can be interpreted that good corporate governance (GCG) is good corporate governance, which is based on the principle of the participation of all stakeholder components in accordance with the law and the rule of law and is carried out with full transparency, responsiveness, consensus orientation, fairness and fairness becomes fairness, efficiency and effectiveness, accountability and strategic vision in the management and control of a company

Summary

INTRODUCTION

The term corporate governance means "corporate management" or "corporate governance". CSR is a collaboration between a company and all stakeholders who interact directly or indirectly with the company to ensure the existence and survival of the company (Widjaja & Yeremia, 2008) This understanding is the same as responsibility for the social community and the environment in the form of a company's commitment to play an active role in sustainable economic growth, with the aim of improving the quality of life and the environment that the company, the local community and benefit society in general. In Indonesia, the definition of CSR in Law No 40 of 2007 on Limited Liability Companies (UUPT) is Article 1 (3), which provides: "Social and environmental responsibility is the company's obligation to participate in sustainable economic development to improve the quality of life and the environment, which benefits both the company itself and the local community and society in general. The following describes the benefits or features of CSR for the business, including the following:

Social operating license

Aim

RESULT

Conclusion