Abstract
The concept of Corporate Social Responsibility (CSR) has been widely spread to developing countries. Most scholars argue that the CSR will give economic benefit to the local communities surrounding the company. Indonesia and Australia have adopted the concept of CSR into some legislation and regulations. When the laws of CSR were implemented in the field of tourism, some companies thought that they do not have any legal obligation to implement it. In practice, local communities have used CSR to demand the tourism industries to provide any social, cultural and economic facilities. This article is aimed at providing an analysis regarding the legal framework of Indonesian and Australian laws and regulations concerning CSR, particularly in Tourism Sector. In addition, it is intended to analyze how the implementation of CSR in tourism may strengthen the local communities. It is a normative legal research that primarily scrutinizes written official law and regulations as well as relevant court decisions regarding the issue of CSR, company, and tourism. It can be concluded that both Indonesia and Australia have regulated the concept of CSR very well as stipulated in official law and regulations. Regarding the implementation, by revolving within the scope of sustainable development concept as well as a gradual increase of tourism industries participation in CSR, the well-being of the local community will surely be improved.
Highlights
IntroductionCorporate Social Responsibility (CSR) reflects a concept that stimulates companies to maintain and upgrade the condition of communities and the environment surrounding the companies with regard to social and environmental development as well as economic empowerment
This paper deals with two issues in relation to Corporate Social Responsibility (CSR); whether clear rulings are present in legislation and what form of CSR is required to be implemented by the tourism industry to benefit local communities
In Indonesia, the concept of CSR has been transformed into norms as stipulated in Limited Liability Act, Investment Act, and some regulations issued by central and local governments while in Australia the CSR has basically been incorporated into Corporation Act, and to some extent, Commonwealth of Australian Constitution Act and Australian Human Rights Commission Act
Summary
Corporate Social Responsibility (CSR) reflects a concept that stimulates companies to maintain and upgrade the condition of communities and the environment surrounding the companies with regard to social and environmental development as well as economic empowerment. According to the Triple Bottom Lines (profit, people and planet), the existence of a company or corporation is to gain profit and benefiting the surroundings.. According to the Triple Bottom Lines (profit, people and planet), the existence of a company or corporation is to gain profit and benefiting the surroundings.4 Bearing in mind those components its connection to the sustainable development in the respective industries of tourism lies in the very core of the establishment of the industries it self
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