Corporate social and environmental responsibility of companies in the natural resources business industry: An Indonesian juridical perspective

Abstract

This study aims to analyze the problems regarding the social and environmental responsibility (CSR) of natural resource companies, as clearly regulated in Law Number 40 of 2007 concerning Limited Liability Companies. The law requires every company to conduct CSR. However, the obligation needs to be followed by a clear arrangement of sanctions given to companies that do not carry out their CSR obligations. Therefore, this study will analyze the urgency of CSR for companies in the field of natural resources and the sanctions that should be imposed on companies that do not carry out mandatory CSR. This research was conducted using a normative method by reviewing regulations per related laws or other documents related to the company's social and environmental obligations. The results of this present study may provide recommendations to the regulatory bodies in Indonesia that it is necessary to have clear arrangements regarding the imposition of sanctions for companies that do not carry out their CSR.