AbstractCSR
should be understood is no longer just a responsibility because it is
voluntary, but it should be done as mandatory within the meaning of
liability due to be accompanied by sanctions. Investors
both domestic and foreign are not justified only achieve gains at the
expense of the interests of other parties kepentngan terkai and shall be
subject to and comply with the provisions of CSR as a legal requirement
if you want to invest in Indonesia. A
shared commitment to sustainable development and to create an
investment climate for investors to realize the welfare of society can
be achieved through the implementation of CSR. CSR in the context of capital investment should be interpreted as an instrument to reduce unethical business practices.
A. Background IssuesCorporate social responsibility or corporate social responsibility (hereafter CSR) may still not popular among businesses nationwide. However, do not apply to foreign investors. Social activities are voluntary, it is usually done by multinational companies hundreds of years ago.Unlike the situation in Indonesia, here CSR activities started in recent years. Demands of society and the development of democracy and the swift currents of globalization and the free market, which raises awareness of the importance of implementing the industrial world of corporate social responsibility (CSR). Although it has long CSR principles set out in legislation within the scope of the law firm. However regrettable the results of a survey conducted by Suprapto in 2005 to 375 companies in Jakarta showed that 166 or 44.27% of companies said they did not carry out CSR activities and 209 or 55.75% of the companies CSR activities. While the form of CSR undertaken include: first, family activities (116 companies), second, the contribution of the religious institutions (50 companies), third, the contribution of the social foundations (39) companies) fourth, community development (4 companies). [1] The survey also suggests that CSR undertaken by the company is very dependent on the whims of the management company itself.Results Company Rating Program (PROPER) Ministry of the Environment from 2004 to 2005 showed that of the 466 companies monitored there were 72 companies received a report card black, 150 red, 221 blue, 23 green, and no one rated gold. With so many companies that received report cards black and red, indicating that they do not apply to environmental responsibility. Besides, in practice not all companies are implementing CSR. For most companies, CSR is considered as a parasite that can charge a "capital maintenance". Even if there are doing CSR, that would be done to compete prestige. Rarely CSR contributes directly to the public.The condition is more popular when the House approved knocked the hammer marks CSR clause into Law no. 40 of 2007 on Limited Liability Company (PT Act) and Law no. 25 of 2007 on Investment (UU PM). Article 74 of Law PT which states that any company that runs its business activities in the field and / or related to the natural resources required to carry out social and environmental responsibility. If not done, then the company is going to be penalized in accordance with the statutory provisions.Tougher rules actually already in the Act PM In article 15 paragraph b mentioned, every investor is obliged to carry out the corporate social responsibility. If not, it can be subject to sanctions ranging from written warnings, restrictions on business activity, suspension of business activity and / or investment facilities, or revocation of business activities and / or investment facilities (Article 34 paragraph (1) of PM).Of course, these two provisions of the law makes a number of people, especially phobias local businesses. Moreover, the emergence of Article 74 of Law PT which consists of 4 verses could mengundnag polemic. The pros and cons of such provisions still continues today. Among businesspeople who are members of the Chamber of Commerce and the Indonesian Employers Association (Apindo) are very strongly against the presence of the chapter. The question that always arises is why CSR should be organized and become a liability? The reason they are CSR activities beyond general liability company and was established in formal legislation, such as: order of business, a tax on profits and environmental standards. If set apart contrary to the principle of continued compliance, CSR will also provide a new burden to businesses. Especially if not undermine a company's finances.These thoughts were expressed cons of setting CSR becomes an obligation, presumably to hamper the investment climate for both the existing and the company will go to Indonesia. On the basis of the various pros and cons that this paper was appointed to provide a con-gathering forum for understanding CSR in the perspective of legal liability.B. Problem Formulation
From the background and problems that appear above then the problem will be studied in this paper is how the essence of the legal regulation of CSR and its implications in improving the investment climate in Indonesia?C. Discussion1. The essence of CSR settings as Legal Liability
Before discussing further the relationship between CSR and its implications for the investment climate it is important to know what is meant by CSR. Until now there is no commonality of view regarding the concept and implementation of CSR, although the business world to realize that CSR is very important for the sustainability of the business of an enterprise. Gurvy Kavei said that the practice of CSR is believed to be the fundamental basis for sustainable development (sustainability development), not only for companies but also for the stakeholders in the overall sense. [2] It is seen from the various formulations of CSR is as follows:
The World Business Council for Sustainable Development (WBCSD) mentions CSR as "the continuing commitment by business to behave ethically and Contribute to economic development while improving the quality of life of the workforce and their families as woolly as of the local community and society at large" .
John Elkingston's asserted "Corporate Social Responsibility is a concept that organization especially (but not only) corporations, have an obligation to consider the interestts of costomers, employees, shareholders, communities, and ecological considerations in all aspectr of theiroperations. This obligation is been to extend beyond their statutory obligation to comply with legislation ". [3]
Explanation of Article 15 letter b Investment Law states that the term "corporate social responsibility" is the responsibility inherent in any investment company to keep creating a harmonious, balanced, and in accordance with the environment, values, norms, and culture local ". [4]
Article 1 paragraph 3 of the Company Law, social and environmental responsibility is a commitment by the company to participate in sustainable economic development to improve the quality of life and environment is beneficial, both for the company itself, the local community and society at large.Notions of CSR seem lack of uniformity or equality perceptions and views on CSR. Seen from the provisions of the Capital Market Law and Company Law, see social responsibility point of view. UUPM emphasize CSR as a company attempts to create harmony with the environment in which it operates. While the Company Law seek to distinguish between social responsibility with environmental responsibility. UUPM departed from the concept of corporate responsibility in the economic, social and environmental (triple bottom line). However, both have the same goal lead on CSR as a company's commitment to sustainable economic development in order to improve the quality of life and environment.If withdrawn at different understanding on the CSR is a company's commitment to the interests of the stakeholders in a broader sense than mere corporate interests. In other words, though the moral is good that companies and investors profit, does not mean that companies or investors achieve profits justified the expense of the other party-related kepentngan.With the provision of CSR as an obligation to change the outlook and behavior of businesses, so that CSR is no longer just a moral imperative meant an-sich, but reassured the company's obligation to perform.This realization meant that the company is no longer a self-serving entity, or the exclusivity and alienation from society, but rather a business entity shall conduct cultural adaptation to the social environment. So it is not excessive if the CSR must be interpreted in the future is no longer just a responsibility because it is voluntary, but it should be done as mandatory within the meaning of liability due to be accompanied by sanctions. [5]In response to these conditions exist, the law as a product of political policy is not always a conditio sine qua non for the goals to be achieved. This shows the limits of the law to have a certain ability to accommodate the values that grow and live in the community, therefore Roscoe Pound stated that the main task of law dalah "social engineering". In this doctrine said that the law should be developed in accordance with changes in social values. For that formulas should be held in the community interest is self-interest, and the general public. [6]Thus the law of the Roscoe Pound is a tool for building community (law is a tool of social engineering). So the law is not only based on reason, but also the experience. Reason tested by experience and experience developed by reason.The context of corporate social responsibility (CSR) in this case there is no obligation on the orders of responsible laws, and repair or otherwise compensate for any damage they have caused. Social responsibility is the moral realm, so it is not the same as the legal position. Ajwab social moral responsibility rather the outward act based entirely from batiniha attitude, attitude is what is known as "morality" that attitudes and good deeds truly selfless. While the legal responsibility ksesuaian more emphasis on outward attitude to the rules, even though the action memorandum is not objectively wrong, maybe both and in accordance with Pandanan moral, legal, and cultural values. However, compliance alone can not be used as a basis to draw a conclusion because it does not know the underlying motives or intentions.When linked with the theory of social responsibility with corporate activity, it can be said that social responsibility more emphasis on the company's concern for the interests of stakeholders in the broad sense of the company's concern about the company's interests alone. [7] Thus, the concept of social responsibility more emphasis on corporate responsibility for the actions and activities of its impact on certain people, communities and the environment in which firms conduct their business activities in such a way that does not impact negatively on the parties within the community. While this is positive implies that the company must carry out its activities in such a way, so as to realize a better society and a prosperous society.Conditions Indonesia still requires the CSR as a legal obligation. Kesadarna the existence of CSR is still low, the condition that occurs is not a sufficient moral consciousness and often there is a set course still hit, especially if it is not set. Since obedience to the law is still very low. CSR born of public pressure on the behavior of companies that ignore social responsibility, such as environmental destruction, exploitation of natural resources, "ngemplang" tax and oppress workers. Then, most companies also tend to make the distance with the surrounding community.If the circumstances that happened was as described above, then the law should play a role. Corporate responsibility is the responsibility of the original non-legal (responsibility) will be transformed into a legal responsibility (liability). Auto companies that do not meet the legislation could be sanctioned.2. CSR and its implications on Investment Climate in IndonesiaFurthermore, we will discuss how CSR and its implications for the investment climate in Indonesia. Investment in Capital Market Law No.. 25 of 2007, Article 1 paragraph 1 stated that "Investment is any form of investment activity, both by domestic investors and foreign investors to do business in the territory of the Republic of Indonesia".Attendance UUPM NO. 25 of 2007 on Investment is expected, is able to provide fresh air to investors and provides an exciting investment climate. Comfort and foreign investor interest, especially when creating a rule of law and guarantee the safety and comfort of the capital invested. The broad objective of the Regulations AM course while providing legal certainty and transparency also do not discriminate and provides equal treatment to domestic and foreign investors.With the guarantee of legal certainty and the comfort and security to investors, it will increase Indonesia's competitiveness in the global market slump since the financial crisis. In this regard, the investment must be part of the implementation of the national economy and put in a bid to boost economic growth, create jobs, promote sustainable economic development, enhance national capacity and technological capabilities, encourage community economic development, and the welfare of the community in a competitive economic system.Objectives of the investment can only be achieved if the supporting factors that inhibit investment climate can be addressed, including through improved coordination between central and local government, the creation of an efficient bureaucracy, the rule of law in the field of investment, the economic costs are highly competitive, and business climate conducive in the field of labor and security effort. With the improvement of these factors, the expected realization of capital investment will improve significantly.Mystical atmosphere expected by forming Law PM, based on the spirit to create a conducive investment climate that one of the rules governing the obligation to carry out CSR. For businesses (both domestic and foreign investors) have an obligation to conduct CSR in both environmental, social or cultural.
Implementation of CSR obligations stipulated in Law No. sebabagaimana. 25 of 2007 on Investment, Article 15 letter b says "Every investor is obliged to carry out corporate social responsibility". Failure to do so can be given administrative sanctions such as written warnings, restrictions on business activity, freezing, up to revocation of business activities and / or investment facilities (Article 34 paragraph (1) Law no. 25 of 2007). While the definition of "corporate social responsibility" is the responsibility inherent in any investment company to keep creating a harmonious, balanced, and in accordance with the environment, values, norms, and culture. [8]Illustration depicting the desires of the various members of the council at the time it is the duty of CSR must be done because many multinational companies operating in Indonesia, apart from its responsibility in managing the environment. "Experience shows that many companies are just doing operations but less so pay attention to the social interests". Some examples of cases, such as the Lapindo mudflow in Porong and Papuan conflict with PT. Freeport Indonesia, the Aceh conflict with Exxon Mobile who manages the Arun natural gas, pollution by Newmont in Buyat and so on.Another reason is the obligation of CSR has also been applied to state-owned companies. Company-owned companies have been implementing CSR by providing assistance to a third party in the form of physical development. Liability was stipulated in the Decree of Minister of State and Minister of Finance since 1997. "Therefore, the company is in Indonesia it's time to participate thinking about things related to the environment in which they operate." [9]Globalization trends show things related to the environment has become a matter of urgency for the benefit of mankind as a whole. Healthy environment is part of human rights. In Britain and the Netherlands for example, CSR becomes a legal assessment by the authority of the capital market, as well as assessment of the public itself. "If the company had not been done precisely CSR performance shares in the stock market is not good".
CSR in the context of capital investment should be interpreted as an instrument to reduce unethical business practices. Therefore it should be denied an opinion stating CSR synonymous with volunteer activities and hamper the investment climate. CSR is a means to minimize the negative impacts of the production process to the public business, especially with its stakeholders. Therefore, it is appropriate to apply CSR as an obligation that are mandatory and must be executed by the company while it is in operation. Similarly, the government as an agent representing the public interest. It is fitting they (government) have the authority to make arrangements or regulate CSR.Thus, the existence of the company will be very useful, so it can fulfill its mission to achieve profit optimization, as well as to carry out its social mission for the benefit of society. Setting the responsibility of the investor is required to encourage healthy competition climate, increase environmental responsibility and fulfillment of rights and obligations as well as efforts to encourage adherence to the investor legislation.CSR consistently by the company will be able to create a climate of investment (capital investment). Assumption that CSR will hamper the investment climate should be rejected. There is an obligation for every investor who came to Indonesia must obey the rules or the laws in force in Indonesia, regardless of its form. Indonesia is still promising for investors as well as foreign. Natural resources are still an attraction than fellow ASEAN countries in the position of Natural Resources (SDA) and Human Resources (HR). These conditions can be achieved if offset by the benefits of preparedness infrastrukturt quality improvement, human, knowledge and physical.UU PM gives assurance to all investors, both foreign and domestic, by the principle of the rule of law, transparency, accountability, equal treatment, and does not distinguish the origin of the state, togetherness, efficiency, justice, sustainability, environment, independence, unity and balance and economic progress nationwide. [10]
CSR in UUPM be done if accompanied by strong institutions in enforcing rules and process. As said by Mochtar Kusumaatmadja, an adequate understanding of the law should not only look at the law as a set of rules and principles that govern human life in society, but should also include institutions (institutions) and processes (processes) necessary to realize that the law in reality. [11]D. Cover1. Conclusion
Based on the background and discussion on the conclusions that can be drawn in this paper are as follows: the implementation of CSR is good and right in accordance with the rule of law will have implications for a conducive investment climate. To be able to realize any CSR entrepreneurs (investors) both domestic and foreign activities in the territory of the Republic of Indonesia shall implement the rules and subject to the laws in force in Indonesia, instead, the government as a regulator mandatory and consistently applying rules and sanction any breach committed by companies that do not implement CSR in accordance with applicable laws.2. Suggestionsa. Government needs to continue to do outreach to businesses to make the perception of the importance of CSR in realizing investment climate in Indonesia.b. It takes consistency and commitment from both the government and entrepreneurs (investors) in melakssanakan CSR as a legal obligation.REFERENCESA. The book - the book:Dirjosisworo Soejono, Company Law Concerning Investment in Indonesia, Mandar Forward, London, 1999.John Elkington, Cannibals with Forks, The Triple Bottom Line of Twentieth Century Business, quoted from Teguh Sri Pembudi, CSR, A Necessity in Social Investment, Social Counseling Center (PUSENSOS) Ministry of Social Affairs, Jakarta, La Tofi Enterprise, 2005.Mochtar Kusumaatmadja, Law, Society and the National Law Development, Binacipta, LondonRoscoe Pound in Mas Soebagio and Slamet Supriatna, Fundamentals of Philosophy, An Introduction to the Philosophy of Law, Akademika Presindo, Jakarta, 1992Sonny A. Keraf, Business Ethics: Claims and Relevance, Yogyakarta, Canisius, 1998,B. Journals, Scientific Writing and PapersGurvy Kavei in Teguh, Social Responsibility To Do, Papers in the seminar on "Corporate Social Responsibility": Integrating into Social acpect The Business, Yogyajarta, 2006.Suprapto, Siti Adipringadi Adiwoso, 2006, Patterns of Corporate Social Responsibility Local in Jakarta, Galang vol. No. 1. 2, January 2006.C. Regulation LegislationLaw No. 25 Year 2007 on InvestmentLaw No. 40 of 2007 on Limited Liability Companies.
* The writer is a lecturer at the Faculty of Law, University of Malang UB and now as a member of the Business Competition Supervisory Commission (KPPU).[1] Suprapto, Siti Adipringadi Adiwoso, 2006, Patterns of Corporate Social Responsibility Local in Jakarta, Galang vol. No. 1. 2, January 2006.[2] Gurvy Kavei in Teguh, Social Responsibility To Do, paper at the seminar on "Corporate Social Responsibility": Integrating Social acpect iinto The Business, Yogyajarta, 2006.[3] John Elkington, Cannibals with Forks, The Triple Bottom Line of Twentieth Century Business, quoted from Teguh Sri Pembudi, CSR, A Necessity in Social Investment, Social Counseling Center (PUSENSOS) Ministry of Social Affairs, Jakarta, La Tofi Enterprise, 2005 , h. 19.[4] Article 15 letter b Explanation of the Investment Law.[5] Pascal 74 paragraph (3) Company Law which states "that the company did not melaknakan obligation referred to in paragraph (1) shall be liable in accordance with statutory provisions.[6] Roscoe Pound in Mas Soebagio and Slamet Supriatna, Fundamentals of Philosophy, An Introduction to the Philosophy of Law, Akademika Presindo, Jakarta, 1992, p. 68.[7] A Sonny. Keraf, Business Ethics: Claims and Relevance, Yogyakarta, Canisius, 1998, p. 122-127.[8] The explanation of Article 15 letter b of Law No.. 25 of 2007 on Investment.[9] Statement by the Chairman of the Special Committee Act PT Akil Mochtar.[10] Article 3 of Law NO. 25 of 2007 on Investment.[11] Mochtar Kusumaatmadja, Law, Society and the National Law Development, Binacipta, London, p. 14.
A. Background IssuesCorporate social responsibility or corporate social responsibility (hereafter CSR) may still not popular among businesses nationwide. However, do not apply to foreign investors. Social activities are voluntary, it is usually done by multinational companies hundreds of years ago.Unlike the situation in Indonesia, here CSR activities started in recent years. Demands of society and the development of democracy and the swift currents of globalization and the free market, which raises awareness of the importance of implementing the industrial world of corporate social responsibility (CSR). Although it has long CSR principles set out in legislation within the scope of the law firm. However regrettable the results of a survey conducted by Suprapto in 2005 to 375 companies in Jakarta showed that 166 or 44.27% of companies said they did not carry out CSR activities and 209 or 55.75% of the companies CSR activities. While the form of CSR undertaken include: first, family activities (116 companies), second, the contribution of the religious institutions (50 companies), third, the contribution of the social foundations (39) companies) fourth, community development (4 companies). [1] The survey also suggests that CSR undertaken by the company is very dependent on the whims of the management company itself.Results Company Rating Program (PROPER) Ministry of the Environment from 2004 to 2005 showed that of the 466 companies monitored there were 72 companies received a report card black, 150 red, 221 blue, 23 green, and no one rated gold. With so many companies that received report cards black and red, indicating that they do not apply to environmental responsibility. Besides, in practice not all companies are implementing CSR. For most companies, CSR is considered as a parasite that can charge a "capital maintenance". Even if there are doing CSR, that would be done to compete prestige. Rarely CSR contributes directly to the public.The condition is more popular when the House approved knocked the hammer marks CSR clause into Law no. 40 of 2007 on Limited Liability Company (PT Act) and Law no. 25 of 2007 on Investment (UU PM). Article 74 of Law PT which states that any company that runs its business activities in the field and / or related to the natural resources required to carry out social and environmental responsibility. If not done, then the company is going to be penalized in accordance with the statutory provisions.Tougher rules actually already in the Act PM In article 15 paragraph b mentioned, every investor is obliged to carry out the corporate social responsibility. If not, it can be subject to sanctions ranging from written warnings, restrictions on business activity, suspension of business activity and / or investment facilities, or revocation of business activities and / or investment facilities (Article 34 paragraph (1) of PM).Of course, these two provisions of the law makes a number of people, especially phobias local businesses. Moreover, the emergence of Article 74 of Law PT which consists of 4 verses could mengundnag polemic. The pros and cons of such provisions still continues today. Among businesspeople who are members of the Chamber of Commerce and the Indonesian Employers Association (Apindo) are very strongly against the presence of the chapter. The question that always arises is why CSR should be organized and become a liability? The reason they are CSR activities beyond general liability company and was established in formal legislation, such as: order of business, a tax on profits and environmental standards. If set apart contrary to the principle of continued compliance, CSR will also provide a new burden to businesses. Especially if not undermine a company's finances.These thoughts were expressed cons of setting CSR becomes an obligation, presumably to hamper the investment climate for both the existing and the company will go to Indonesia. On the basis of the various pros and cons that this paper was appointed to provide a con-gathering forum for understanding CSR in the perspective of legal liability.B. Problem Formulation
From the background and problems that appear above then the problem will be studied in this paper is how the essence of the legal regulation of CSR and its implications in improving the investment climate in Indonesia?C. Discussion1. The essence of CSR settings as Legal Liability
Before discussing further the relationship between CSR and its implications for the investment climate it is important to know what is meant by CSR. Until now there is no commonality of view regarding the concept and implementation of CSR, although the business world to realize that CSR is very important for the sustainability of the business of an enterprise. Gurvy Kavei said that the practice of CSR is believed to be the fundamental basis for sustainable development (sustainability development), not only for companies but also for the stakeholders in the overall sense. [2] It is seen from the various formulations of CSR is as follows:
The World Business Council for Sustainable Development (WBCSD) mentions CSR as "the continuing commitment by business to behave ethically and Contribute to economic development while improving the quality of life of the workforce and their families as woolly as of the local community and society at large" .
John Elkingston's asserted "Corporate Social Responsibility is a concept that organization especially (but not only) corporations, have an obligation to consider the interestts of costomers, employees, shareholders, communities, and ecological considerations in all aspectr of theiroperations. This obligation is been to extend beyond their statutory obligation to comply with legislation ". [3]
Explanation of Article 15 letter b Investment Law states that the term "corporate social responsibility" is the responsibility inherent in any investment company to keep creating a harmonious, balanced, and in accordance with the environment, values, norms, and culture local ". [4]
Article 1 paragraph 3 of the Company Law, social and environmental responsibility is a commitment by the company to participate in sustainable economic development to improve the quality of life and environment is beneficial, both for the company itself, the local community and society at large.Notions of CSR seem lack of uniformity or equality perceptions and views on CSR. Seen from the provisions of the Capital Market Law and Company Law, see social responsibility point of view. UUPM emphasize CSR as a company attempts to create harmony with the environment in which it operates. While the Company Law seek to distinguish between social responsibility with environmental responsibility. UUPM departed from the concept of corporate responsibility in the economic, social and environmental (triple bottom line). However, both have the same goal lead on CSR as a company's commitment to sustainable economic development in order to improve the quality of life and environment.If withdrawn at different understanding on the CSR is a company's commitment to the interests of the stakeholders in a broader sense than mere corporate interests. In other words, though the moral is good that companies and investors profit, does not mean that companies or investors achieve profits justified the expense of the other party-related kepentngan.With the provision of CSR as an obligation to change the outlook and behavior of businesses, so that CSR is no longer just a moral imperative meant an-sich, but reassured the company's obligation to perform.This realization meant that the company is no longer a self-serving entity, or the exclusivity and alienation from society, but rather a business entity shall conduct cultural adaptation to the social environment. So it is not excessive if the CSR must be interpreted in the future is no longer just a responsibility because it is voluntary, but it should be done as mandatory within the meaning of liability due to be accompanied by sanctions. [5]In response to these conditions exist, the law as a product of political policy is not always a conditio sine qua non for the goals to be achieved. This shows the limits of the law to have a certain ability to accommodate the values that grow and live in the community, therefore Roscoe Pound stated that the main task of law dalah "social engineering". In this doctrine said that the law should be developed in accordance with changes in social values. For that formulas should be held in the community interest is self-interest, and the general public. [6]Thus the law of the Roscoe Pound is a tool for building community (law is a tool of social engineering). So the law is not only based on reason, but also the experience. Reason tested by experience and experience developed by reason.The context of corporate social responsibility (CSR) in this case there is no obligation on the orders of responsible laws, and repair or otherwise compensate for any damage they have caused. Social responsibility is the moral realm, so it is not the same as the legal position. Ajwab social moral responsibility rather the outward act based entirely from batiniha attitude, attitude is what is known as "morality" that attitudes and good deeds truly selfless. While the legal responsibility ksesuaian more emphasis on outward attitude to the rules, even though the action memorandum is not objectively wrong, maybe both and in accordance with Pandanan moral, legal, and cultural values. However, compliance alone can not be used as a basis to draw a conclusion because it does not know the underlying motives or intentions.When linked with the theory of social responsibility with corporate activity, it can be said that social responsibility more emphasis on the company's concern for the interests of stakeholders in the broad sense of the company's concern about the company's interests alone. [7] Thus, the concept of social responsibility more emphasis on corporate responsibility for the actions and activities of its impact on certain people, communities and the environment in which firms conduct their business activities in such a way that does not impact negatively on the parties within the community. While this is positive implies that the company must carry out its activities in such a way, so as to realize a better society and a prosperous society.Conditions Indonesia still requires the CSR as a legal obligation. Kesadarna the existence of CSR is still low, the condition that occurs is not a sufficient moral consciousness and often there is a set course still hit, especially if it is not set. Since obedience to the law is still very low. CSR born of public pressure on the behavior of companies that ignore social responsibility, such as environmental destruction, exploitation of natural resources, "ngemplang" tax and oppress workers. Then, most companies also tend to make the distance with the surrounding community.If the circumstances that happened was as described above, then the law should play a role. Corporate responsibility is the responsibility of the original non-legal (responsibility) will be transformed into a legal responsibility (liability). Auto companies that do not meet the legislation could be sanctioned.2. CSR and its implications on Investment Climate in IndonesiaFurthermore, we will discuss how CSR and its implications for the investment climate in Indonesia. Investment in Capital Market Law No.. 25 of 2007, Article 1 paragraph 1 stated that "Investment is any form of investment activity, both by domestic investors and foreign investors to do business in the territory of the Republic of Indonesia".Attendance UUPM NO. 25 of 2007 on Investment is expected, is able to provide fresh air to investors and provides an exciting investment climate. Comfort and foreign investor interest, especially when creating a rule of law and guarantee the safety and comfort of the capital invested. The broad objective of the Regulations AM course while providing legal certainty and transparency also do not discriminate and provides equal treatment to domestic and foreign investors.With the guarantee of legal certainty and the comfort and security to investors, it will increase Indonesia's competitiveness in the global market slump since the financial crisis. In this regard, the investment must be part of the implementation of the national economy and put in a bid to boost economic growth, create jobs, promote sustainable economic development, enhance national capacity and technological capabilities, encourage community economic development, and the welfare of the community in a competitive economic system.Objectives of the investment can only be achieved if the supporting factors that inhibit investment climate can be addressed, including through improved coordination between central and local government, the creation of an efficient bureaucracy, the rule of law in the field of investment, the economic costs are highly competitive, and business climate conducive in the field of labor and security effort. With the improvement of these factors, the expected realization of capital investment will improve significantly.Mystical atmosphere expected by forming Law PM, based on the spirit to create a conducive investment climate that one of the rules governing the obligation to carry out CSR. For businesses (both domestic and foreign investors) have an obligation to conduct CSR in both environmental, social or cultural.
Implementation of CSR obligations stipulated in Law No. sebabagaimana. 25 of 2007 on Investment, Article 15 letter b says "Every investor is obliged to carry out corporate social responsibility". Failure to do so can be given administrative sanctions such as written warnings, restrictions on business activity, freezing, up to revocation of business activities and / or investment facilities (Article 34 paragraph (1) Law no. 25 of 2007). While the definition of "corporate social responsibility" is the responsibility inherent in any investment company to keep creating a harmonious, balanced, and in accordance with the environment, values, norms, and culture. [8]Illustration depicting the desires of the various members of the council at the time it is the duty of CSR must be done because many multinational companies operating in Indonesia, apart from its responsibility in managing the environment. "Experience shows that many companies are just doing operations but less so pay attention to the social interests". Some examples of cases, such as the Lapindo mudflow in Porong and Papuan conflict with PT. Freeport Indonesia, the Aceh conflict with Exxon Mobile who manages the Arun natural gas, pollution by Newmont in Buyat and so on.Another reason is the obligation of CSR has also been applied to state-owned companies. Company-owned companies have been implementing CSR by providing assistance to a third party in the form of physical development. Liability was stipulated in the Decree of Minister of State and Minister of Finance since 1997. "Therefore, the company is in Indonesia it's time to participate thinking about things related to the environment in which they operate." [9]Globalization trends show things related to the environment has become a matter of urgency for the benefit of mankind as a whole. Healthy environment is part of human rights. In Britain and the Netherlands for example, CSR becomes a legal assessment by the authority of the capital market, as well as assessment of the public itself. "If the company had not been done precisely CSR performance shares in the stock market is not good".
CSR in the context of capital investment should be interpreted as an instrument to reduce unethical business practices. Therefore it should be denied an opinion stating CSR synonymous with volunteer activities and hamper the investment climate. CSR is a means to minimize the negative impacts of the production process to the public business, especially with its stakeholders. Therefore, it is appropriate to apply CSR as an obligation that are mandatory and must be executed by the company while it is in operation. Similarly, the government as an agent representing the public interest. It is fitting they (government) have the authority to make arrangements or regulate CSR.Thus, the existence of the company will be very useful, so it can fulfill its mission to achieve profit optimization, as well as to carry out its social mission for the benefit of society. Setting the responsibility of the investor is required to encourage healthy competition climate, increase environmental responsibility and fulfillment of rights and obligations as well as efforts to encourage adherence to the investor legislation.CSR consistently by the company will be able to create a climate of investment (capital investment). Assumption that CSR will hamper the investment climate should be rejected. There is an obligation for every investor who came to Indonesia must obey the rules or the laws in force in Indonesia, regardless of its form. Indonesia is still promising for investors as well as foreign. Natural resources are still an attraction than fellow ASEAN countries in the position of Natural Resources (SDA) and Human Resources (HR). These conditions can be achieved if offset by the benefits of preparedness infrastrukturt quality improvement, human, knowledge and physical.UU PM gives assurance to all investors, both foreign and domestic, by the principle of the rule of law, transparency, accountability, equal treatment, and does not distinguish the origin of the state, togetherness, efficiency, justice, sustainability, environment, independence, unity and balance and economic progress nationwide. [10]
CSR in UUPM be done if accompanied by strong institutions in enforcing rules and process. As said by Mochtar Kusumaatmadja, an adequate understanding of the law should not only look at the law as a set of rules and principles that govern human life in society, but should also include institutions (institutions) and processes (processes) necessary to realize that the law in reality. [11]D. Cover1. Conclusion
Based on the background and discussion on the conclusions that can be drawn in this paper are as follows: the implementation of CSR is good and right in accordance with the rule of law will have implications for a conducive investment climate. To be able to realize any CSR entrepreneurs (investors) both domestic and foreign activities in the territory of the Republic of Indonesia shall implement the rules and subject to the laws in force in Indonesia, instead, the government as a regulator mandatory and consistently applying rules and sanction any breach committed by companies that do not implement CSR in accordance with applicable laws.2. Suggestionsa. Government needs to continue to do outreach to businesses to make the perception of the importance of CSR in realizing investment climate in Indonesia.b. It takes consistency and commitment from both the government and entrepreneurs (investors) in melakssanakan CSR as a legal obligation.REFERENCESA. The book - the book:Dirjosisworo Soejono, Company Law Concerning Investment in Indonesia, Mandar Forward, London, 1999.John Elkington, Cannibals with Forks, The Triple Bottom Line of Twentieth Century Business, quoted from Teguh Sri Pembudi, CSR, A Necessity in Social Investment, Social Counseling Center (PUSENSOS) Ministry of Social Affairs, Jakarta, La Tofi Enterprise, 2005.Mochtar Kusumaatmadja, Law, Society and the National Law Development, Binacipta, LondonRoscoe Pound in Mas Soebagio and Slamet Supriatna, Fundamentals of Philosophy, An Introduction to the Philosophy of Law, Akademika Presindo, Jakarta, 1992Sonny A. Keraf, Business Ethics: Claims and Relevance, Yogyakarta, Canisius, 1998,B. Journals, Scientific Writing and PapersGurvy Kavei in Teguh, Social Responsibility To Do, Papers in the seminar on "Corporate Social Responsibility": Integrating into Social acpect The Business, Yogyajarta, 2006.Suprapto, Siti Adipringadi Adiwoso, 2006, Patterns of Corporate Social Responsibility Local in Jakarta, Galang vol. No. 1. 2, January 2006.C. Regulation LegislationLaw No. 25 Year 2007 on InvestmentLaw No. 40 of 2007 on Limited Liability Companies.
* The writer is a lecturer at the Faculty of Law, University of Malang UB and now as a member of the Business Competition Supervisory Commission (KPPU).[1] Suprapto, Siti Adipringadi Adiwoso, 2006, Patterns of Corporate Social Responsibility Local in Jakarta, Galang vol. No. 1. 2, January 2006.[2] Gurvy Kavei in Teguh, Social Responsibility To Do, paper at the seminar on "Corporate Social Responsibility": Integrating Social acpect iinto The Business, Yogyajarta, 2006.[3] John Elkington, Cannibals with Forks, The Triple Bottom Line of Twentieth Century Business, quoted from Teguh Sri Pembudi, CSR, A Necessity in Social Investment, Social Counseling Center (PUSENSOS) Ministry of Social Affairs, Jakarta, La Tofi Enterprise, 2005 , h. 19.[4] Article 15 letter b Explanation of the Investment Law.[5] Pascal 74 paragraph (3) Company Law which states "that the company did not melaknakan obligation referred to in paragraph (1) shall be liable in accordance with statutory provisions.[6] Roscoe Pound in Mas Soebagio and Slamet Supriatna, Fundamentals of Philosophy, An Introduction to the Philosophy of Law, Akademika Presindo, Jakarta, 1992, p. 68.[7] A Sonny. Keraf, Business Ethics: Claims and Relevance, Yogyakarta, Canisius, 1998, p. 122-127.[8] The explanation of Article 15 letter b of Law No.. 25 of 2007 on Investment.[9] Statement by the Chairman of the Special Committee Act PT Akil Mochtar.[10] Article 3 of Law NO. 25 of 2007 on Investment.[11] Mochtar Kusumaatmadja, Law, Society and the National Law Development, Binacipta, London, p. 14.
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