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26 J. Legal Ethical & Regul. Isses 1 (2023)
The Reflexive Law and Reformulation of Corporate Social Responsibility Regulation in Indonesia

handle is hein.journals/jnlolletl26 and id is 419 raw text is: Journal of Legal, Ethical and Regulatory Issues THE REFLEXIVE LAW AND REFORMULATION OF CORPORATE SOCIAL RESPONSIBILITY REGULATION IN INDONESIA Ratna Artha Windari, Universitas Indonesia Yetty Komalasari Dewi, Universitas Indonesia Andri Gunawan Wibisana, Universitas Indonesia ABSTRACT Although the provisions of Corporate Social Responsibility (CSR) in Indonesia have been enforced since 2007 through Law Number 40 of 2007 on Limited Liability Companies, the results of previous research suggest that the implementation of CSR in Indonesia is relatively lower than other ASEAN Countries. This condition indicates that there are problems in the regulation of CSR in Indonesia. This study aims to evaluate CSR regulation in correlation to leverage the implementation of CSR in textile and garment manufacturing companies and reviewing the concept of self-regulation which is the application of reflexive law theory as an alternative for reformulating CSR regulation in Indonesia. This paper started by discussing the regulation of CSR in Indonesia, lack of disclosure of CSR in textile and garment manufacturing companies, evaluating mandatory CSR regulation, and formulating of CSR regulation using the concept of self-regulation through comparisons from Australia. This paper is a doctrinal with a comparative and conceptual approach. Reflexive law is a middle way for the dilemma of CSR regulation in Indonesia, where companies are given the obligation to regulate themselves in giving a role, especially for environmental issues that arise from the activities of textile and garment companies in Indonesia. Keywords: Reflexive Law, Reformulating, CSR, Indonesia. INTRODUCTION Corporate Social Responsibility (CSR) and how it is regulated are widely discussed, and has created reactions both pro and cons since the beginning of the idea of CSR forward by Bowen in 2013. In its progress, several countries have developed CSR which were originally voluntary changes to the mandatory through legislation. Mandatory CSR regulation is seen by several countries as an indicator of state concern for various social and environmental issues. Indonesia is one of the countries that adopt a policy to regulate CSR on a mandatory basis through various regulations. One of the rules that guide CSR mandatory in Indonesia is Law Number 40 of 2007 on Limited Liability Companies (Law on Limited Liability Companies). Based on Elucidation of Law on Limited Liability Companies, Environmental and Social Responsibility aimed at creating sustainable economic development in order to improve the quality of life and environment. This provision also intended to support the company relationship which are harmonious, balanced and in accordance with the environment, values, norms and culture of the local community. Mandatory regulation of CSR is motivated by increasing social 1 1544-0044-26-S3-004 Citation Information: Windari, R.A., Dewi, Y.K., & Wibisana, A.G. (2023). The reflexive law and reformulation of corporate social responsibility regulation in Indonesia. Journal of Legal, Ethical and Regulatory Issues, 26(S3), 1-317. Volume 26, Special Issue 3, 2023

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