Regulation on the Fund of Corporate Social and Environmental Responsibility

Abstract

Objective: The objectives of this research are to study and analyze Act Number 40 of 2007 concerning Limited Liability Companies which does not regulate on the amount of funds for Corporate Social and Environmental Responsibility, and the concept of the regulation of Corporate Social and Environmental Responsibility in ius to be established. Method: This research applies normative legal research by using library research or secondary data consisting of primary, secondary, and tertiary legal resources. Results and conclusion: Results of the research show that of the regulation of Corporate Social and Environmental Responsibility (TJSLP) stipulated in Article 74 of Act Number 40 of 2007 concerning Limited Liability Companies is aimed at implementing sustainable economic development in order to improve the quality of life and environment useful for the company itself, local community, and community in general. Act Number 40 of 2007 does not explicitly regulate the amount of Corporate Social and Environmental Responsibility (TJSLP) which must be prepared by the company. The lawmaker only explicitly mentions that its implementation is performed by taking into account propriety and reasonableness. Implication: The People's Representative Council (DPR) needs to determine the amount of the Fund of Corporate Social and Environmental Responsibility (TJSLP), so there is legal certainty and it has binding power to every company to be borne with the obligation of Corporate Social and Environmental Responsibility (TJSLP). Currently, there is a vacuum of law because there is uncertainty on the amount of the Fund of Corporate Social and Environmental Responsibility (TJSLP). So it is deemed necessary to regulate Corporate Social and Environmental Responsibility (TJSLP)by the local government through Regional Regulation (Perda).