The Meaning of Corporate Social Responsibility as a Legal Obligation in Limited Company Law: an Indonesian Case Study

Abstract

The purpose of this study is to analyse and determine the meaning of corporate social responsibility as a legal obligation to the company according to Article 74 of Law No. 40 of 2007 concerning Limited Liability Companies (UUPT). This type of legal research is doctrinal research using the short term (statute and pro) and short concept (conceptual and pro). From the results of the research, it can be found that philosophically the existence of corporate social responsibility (CSR) as stipulated in Article 74 paragraph (1) of Law Number 40 the Year 2007 concerning Limited Liability Companies. This is very closely related to the goals and functions of the Indonesian state in a form that is expressly stated in paragraph IV of the Preamble of the 1945 Constitution of the Republic of Indonesia, one of which is to advance public welfare. All the Indonesian Nation is guided by Pancasila as the Nation's Life View. The Indonesian people will not be able to achieve the goals they have dreamed of without the noble values that they uphold as a way of life, namely Pancasila. In this case, the implementation of CSR obligations is carried out to realise the objectives and functions of the state under Pancasila. Socially, the existence of CSR is a legal responsibility that is based on the values of benefits that will be accepted by the community. CSR can be used as a means to empower the poor. Even the implementation of CSR to the community through the utilisation of potential social capital can be used as an alternative to empowering the poor in Indonesia. The concept of CSR as referred to in Article 74 is the implementation in Article 33 paragraph (4) of the 1945 Constitution. Normalising CSR in Article 74 paragraph (1) of the PT Law which is then strengthened by Decision of the Constitutional Court No. 53/PUU-VI/2008 is a legal obligation accompanied by sanctions. Normalising CSR as a legal obligation accompanied by sanctions for violators is intended not only to regulate (aanvullend recht) but rather to force (dwingend rechr) to give more power to regulate, tie up, and force the responsibility of the company than the original responsibility (non-legal responsibility ) becomes a liability. Keywords: Corporate social responsibility, legal obligations, welfare