Social Environmental Responsbility (CSR) as a Legal Obligation in Corporate Law: Implementation and Its Impact on Society
DOI:
https://doi.org/10.65358/haqqiyyah.v1i2.55Keywords:
Social and Environmental Responsibility (TJSL), Corporate Social Responsibility (CSR), Legal Obligation, Implementation, GovernanceAbstract
Specifically, the study identifies a crucial legal gap: the limited scope of this obligation only to natural-resource-based companies, and critically analyzes the disproportionality of legal sanctions that undermines its deterrent effect. Initially recognized as a voluntary, ethics-driven initiative, TJSL has now become a legal mandate for certain limited liability companies, especially those engaging in or related to natural resources. This shift creates a distinctive paradigm compared to neighboring Southeast Asian countries, which mostly prefer incentive-based or voluntary frameworks. The study aims to analyze in depth the juridical construction of TJSL as a mandatory obligation, identify primary challenges in its implementation and governance, and examine the legal enforcement and empirical implications of such regulation for the community in the context of sustainable development. Findings highlight legal gaps, particularly the limited scope of the obligation to only natural-resource-based companies, ambiguities in operational definitions and funding sources, and weaknesses in the effectiveness of legal sanctions. The research suggests the need for comprehensive regulatory reforms to ensure the effectiveness of TJSL both legally and empirically for Indonesian society as a whole
References
Ama Khasanayanti, Efendi, J., & Sadjijono. (2025). Supervision and enforcement of CSR in Indonesia: A comparative study of ASEAN regulations and harmonization with global standards. Remittances Review, 10(2). https://remittancesreview.com/menu-script/index.php/remittances/article/view/2713
Andriani, K., & Lie, G. (2025). Regulatory disharmony of corporate social responsibility (CSR) between state-owned and private enterprises and its implications for sustainable development indicators in Indonesia. Indonesian Journal of Law and Economics Review, 20(4). https://ijler.umsida.ac.id/index.php/ijler/article/view/1389
ASEAN Exchanges. (2025, December 18). 265 listed firms achieve SET ESG ratings as Thai bourse prepares for FTSE Russell ESG transition in 2026. https://www.aseanexchanges.org/content/265-listed-firms-achieve-set-esg-ratings-as-thai-bourse-prepares-for-ftse-russell-esg-transition-in-2026/
Bursa Malaysia. (n.d.). Questions and answers in relation to Bursa Malaysia Listing Requirements: CSR disclosure requirements (Appendix 9C, Part A). https://www.bursamalaysia.com/sites/5bb54be15f36ca0af339077a/assets/5bb581c35f36ca0c2cacc86a/listing_requirement_faq_consolidated_main_market_010716.pdf
Dasenta, V. (2025). Konsistensi pengaturan tanggung jawab sosial dan lingkungan perusahaan dalam peraturan perundang-undangan di Indonesia. Justitia et Pax, 39(1). https://doi.org/10.24002/jep.v39i1.7031
du Toit, E. (2024). Thirty years of sustainability reporting: Insights, gaps and an agenda for future research through a systematic literature review. Sustainability, 16(23), Article 10750. https://doi.org/10.3390/su162310750
Erbhasan, R. A., & Supratman, L. P. (2023). Challenges in the implementation of corporate social responsibility during the COVID-19 pandemic in 2020–2022. Discourse: Scientific Journal of Communication Sciences, 22(1), 166–177.
European Commission. (2023). Corporate Sustainability Reporting Directive (CSRD). European Union Publications Office.
Freeman, R. E. (2010). Strategic management: A stakeholder approach. Cambridge University Press. https://books.google.co.id/books?id=NpmA_qEiOpkC
Government Regulation Number 47 of 2012 concerning Social and Environmental Responsibility of Limited Liability Companies. (2012). State Gazette of the Republic of Indonesia Year 2012 Number 89.
Hahn, R., Figge, F., Pinkse, J., & Preuss, L. (2022). A paradox perspective on corporate sustainability: Descriptive, instrumental, and normative aspects. Journal of Business Ethics, 148(2), 235–248. https://doi.org/10.1007/s10551-017-3587-2
Hatta, H. H., & N. W., R. (2024). The impact of PT VDNI on the socio-economic life of the community. Journal of Social Welfare Sciences, 5(1), 99–108.
Hombore, E. (2025). Corporate social responsibility as a public policy instrument: An analysis of the impact of plantation company CSR programs in Merauke. https://indojurnal.com/index.php/jisoh/article/download/372/304/998
International Journal of Islamic Education, Research and Multiculturalism. (2025). Legal inconsistency of CSR regulations in Indonesia and its implications for corporate compliance. International Journal of Islamic Education, Research and Multiculturalism, 7(1), 387–410.
Journal of Corporate Finance. (2025). Demand-driven corporate social responsibility: Symbolic versus substantive change after environmental disasters. Journal of Corporate Finance, 94, Article 102816. https://doi.org/10.1016/j.jcorpfin.2025.102816
Kagan, R. A. (2020). Adversarial legalism: The American way of law. Harvard University Press.
Kaptein, M. (2025). The limits of the ethical responsibilities of companies: Using corporate social contract theory to identify boundary principles. Journal of Business Ethics. https://doi.org/10.1007/s10551-025-06109-3
Lubis, E. P., & Hajar, I. S. (2024). The corporate social responsibility regulation in the development of business law: Comparison of Indonesia and Thailand. Journal of Legal Sciences.
OECD. (2020). Corporate governance and responsible business conduct. OECD Publishing. https://www.oecd.org/corporate/responsible-business-conduct/
OECD. (2022). Corporate governance and sustainability reporting: Policy perspectives for inclusive growth. OECD Publishing.
Papafloratos, T. (2025). A systematic review of the effects of mandatory corporate sustainability reporting. Sustainability, 17(12), Article 5336. https://www.mdpi.com/2071-1050/17/12/5336
PT PLN (Persero). (2021). Report on the social and environmental responsibility program (TJSL) 2021. PT PLN (Persero).
PwC Indonesia. (2023, September 5). Trends and directions of Indonesia’s sustainability report in the future.
Rahmadany, R., Syafitri, I., Dewi, A. S., & Daud. (2022). Tinjauan hukum terhadap tanggung jawab sosial perusahaan (corporate social responsibility). Legal Brief, 11(4), 2509–2517. https://www.legal.isha.or.id/index.php/legal/article/view/490
Riska Septi Ariani, H. H., & Ramadanthy, F. W. (2025). Development of corporate social responsibility implementation (Study in Indonesia and Malaysia). Journal of Economics, Assets, and Evaluation, 2(2), 346. https://doi.org/10.47134/jeae.v2i2.346
Rozak, Y. N. (2023). Corporate social responsibility as a legal obligation. Lex Renaissance, 8(1), 93–108.
Samarawickrama, D. (2025). CSR disclosure, business groups and firm risk. Journal of Corporate Finance (forthcoming). https://www.sciencedirect.com/science/article/pii/S156601412500113X
Scherer, A. G., Palazzo, G., & Seidl, D. (2020). Managing legitimacy in complex and heterogeneous environments: Sustainable development in a globalized world. Journal of Management Studies, 57(2), 308–335. https://doi.org/10.1111/joms.12460
Seow, R. Y. C. (2025). The drivers of CSR-ESG conflation and fragmented disclosures: Regulatory challenges for meaningful sustainability reporting. Journal of Environmental Management, 394, Article 127468. https://doi.org/10.1016/j.jenvman.2025.127468
Setiawati, D., Astutik, Z. A., Soepatini, S., & Naranta, E. H. G. (2024). Corporate social responsibility supervisors in Indonesia: Analysis of local government regulation in 10 provinces in Indonesia. Varia Justicia. https://doi.org/10.31603/variajusticia.v18i2.7022
Setiawati, D., Soepatini, S., Febriani, H., & Anggraeni, C. (2025). Transparency and accountability in corporate social responsibility programs. Law and Justice, 9(1), 1–15. https://doi.org/10.23917/laj.v9i1.10313
Siahaan, L., Siregar, H., & Nababan, R. (2025). Legal responsibility of companies in implementing corporate social responsibility (CSR) in Indonesia. Journal of Legal and Cultural Analytics, 4(1), 437–448. https://doi.org/10.55927/jlca.v4i1.13892
Sondakh, J. S. (2025). Corporate social responsibility regulation and enforcement gaps: Implications for legal accountability and substantive CSR implementation in Indonesia. International Journal of Islamic Education, Research and Multiculturalism, 7(1), 387–410. https://journal.yaspim.org/index.php/IJIERM/article/download/457/316
Supreme Court of Indonesia. (2022). Decision No. 1022 PK/Pdt/2022 on CSR obligations in the mining sector. Supreme Court Registry.
Teubner, G. (1993). Law as an autopoietic system. Blackwell Publishers.
Thammaraksa, C. (2024). Business reporting of Sustainable Development Goals: Global trends and implications. https://research-api.cbs.dk/ws/portalfiles/portal/102380135/Bus_Strat_Env_-_2024_-_Thammaraksa_-_Business_reporting_of_Sustainable_Development_Goals_Global_trends_and_implications.pdf
UNAIR Executive Education. (2021). Corporate social responsibility (CSR) in Indonesia. https://executive-education.unair.ac.id
UNCTAD. (2023). Guidance on core indicators for entity reporting on the contribution towards implementation of the Sustainable Development Goals. United Nations. https://unctad.org/publication/guidance-core-indicators-entity-reporting-contribution-towards-implementation
Windari, R. A., & Dewi, Y. K. (2025). Evaluating mandatory corporate social responsibility disclosure policies and sustainability development goals achievement in Indonesia. Yustisia. https://jurnal.uns.ac.id/yustisia/article/view/81940
Yang, W., & Kim, J. (2025). Symbolic or substantial: Firms’ adaptive CSR compliance strategies in developing institutional contexts. European Journal of Sustainable Development, 14(3), 616. https://ecsdev.org/ojs/index.php/ejsd/article/view/1866
Zidni, M. I., & Mahfud, M. (2025). Tinjauan yuridis Putusan Mahkamah Agung Nomor 1022 PK/Pdt/2022 berkaitan dengan tindak pelanggaran perdata corporate social responsibility. Sang Pencerah: Jurnal Ilmiah Universitas Muhammadiyah Buton. https://core.ac.uk/outputs/640240741/
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Imam Nur Hidayat Tarigan, Ivana Novrinda Rambe, Yessi Kurnia Arjani Manik (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Download Template (.DOCX) 
Join as Reviewer 
