23 J.L. Pol'y & Globalization 1 (2014)

handle is hein.journals/jawpglob23 and id is 1 raw text is: 


Journal of Law, Policy and Globalization                                                       www.iiste.org
ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online)                                                          t
Vol.23, 2014                                                                                         IIsT


            Deviation Concept of CSR Regulation in Indonesia

     (Article 74 of Law 40 of 2007 on Limited Liability Company)

                       I Made Arjaya'*, Moch. Bakri2, Sihabudin3, Bambang Winarno4
             1.1 Made Arjaya, a doctoral student in the UB law school. Field of study: Economic Law
                    2. Moh Bakri, Professor at the UB law school. Field of study: Private Law
                    3. Sihabudin, doctorate in law school UB. Field of study: Economic Law
                4. Bambang Winarno, doctorate in law school UB. Field of study: Economic Law
                  Corespondence address: 11 Letda Suci Street, Denpasar 80232, Bali Indonesia
                                       E-mail: imd.arjaya 4gmail.com

Abstract
The concept of CSR was originally a moral concept. CSR in Indonesia is the concept of law as set out in Law No.
40 of 2007 on Limited Liability Company, in particular on Article 74 which provides that the company is
carrying on business activities in the field and / or related to the natural resources required to implement the
Social and Environmental Responsibility. This concept has strayed from the original concept of corporate social
responsibility is not put on the orientation of the physical environment, but the social environment as a form of
corporate environments (business environment).
Keywords: Concept of CSR, Act 40 of 2007, Limited Liability Company.

1. Introduction
The concept of CSR was originally a moral concept. CSR in Indonesia is the concept of law as set out in Law No.
25 of 2007 on Investment, in particular on article 15 and in Law No. 40 of 2007 on Limited Liability Company,
in particular on Article 74.
The Company is conducting its business activities in the field and / or related to the natural resources required to
implement the Social and Environmental Responsibility as stipulated in Article 74 paragraph (1) of Law No. 40
of 2007 on Limited Liability Company. Social and Environmental Responsibility as referred to in paragraph (1)
an obligation of the Company are budgeted and accounted for as an expense of the Company that the
implementation is done with regard to the appropriateness and fairness, as specified in Article 74 paragraph (2)
of Law No. 40 of 2007.
Normative facts above indicate the presence of legal issues that require research and study, namely: why the
deviation occurs in the regulation of the concept of corporate social responsibility (Article 74 of Law No. 40 of
2007)?

2. Methodology
This type of research is a normative legal research and policy oriented research.1 This study intends to examine
the correlation between the construction of norms and norm conformity with the concept of reality as content
objects arranged (consistency); completeness substance norm (coherency) and unprotected substrate element
norm conformity with the characteristics of the object are arranged in setting corporate social responsibility in
Indonesia. This study uses the approach of law (statute approach), conceptual approaches (conceptual approach),
and functional legal approach (functional normative approach) with specialization in policy -oriented approach
to law (policy - oriented approach or policy - oriented research). The results of the study were analyzed using
analysis methods of deduction and analysis of substantive legal norms. Analysis of substantive legal norms using
constructive analysis and contextual analysis of the norm or construction norms and norm context analysis.

3. Results and Discussion
3.1. The Concept of CSR
Many of the terms and definitions of Corporate Social Responsibility, the following will be presented some
terms and definitions of Corporate Social Responsibility.
Corporate Citizenship, the term was introduced by Joseph W McGuire in 1963. Corporations should pay
attention to political issues, social welfare, education, happiness of labor and other social problems throughout.


'Ida Bagus Wyasa Putra, Legal Theory to Orientation Policy (Policy - Oriented Theory of Law ) : Problems Solving in the Legislative
Process Indonesian context,  Legal Theory Lecture Materials Science Doctoral Program of Law and Master of Law Graduate Program,
Udayana University  (Denpasar : Udayana University , 2012), p.17. Myres S. McDougal and W. Michael Reisman, International Law in
Policy-Oriented Perspective, dalam R. St Johnston and J. Macdonald Douglas, The Structure and Process of International Law: Essays in
Legal Philosophy, Doctrine and Theory, (Martinus Nijhoff Publishers, The Hague, 1983), p. 103.
2 Ibid.

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