Corporate Social Responsibility as a Legal Obligation for Companies to Improve Community Welfare in Indonesia

Abstract

Corporate Social Responsibility (CSR) is an inherent responsibility of the company to keep creating harmonious, balanced, and harmonious relationships with the environment, values, norms and culture of the community. CSR is basically a derivation of business ethics, which can bridge the interests of the company with the needs of the community, both directly and indirectly affected by the company's operations. The problem that will be discussed in this research is CSR as legal obligation for company to improve prosperity of society in Riau Province. The method used in this research is normative law research. The result of this research is that the regulation on CSR in the legal system in Indonesia is regulated in Law Number 25 of 2007 on Investment and Law Number 40 of 2007 on Limited Liability Company. However, the weakness of the law is that CSR is only applied to a company that conducts its business in the field of natural resources and / or related to natural resources. The birth of Riau Provincial Regulation Number 6 of 2012 on Corporate Social Responsibility in Riau Province further strengthens the legal basis for the implementation of CSR for companies operating in Riau Province. Riau Provincial Government develops CSR Program. As part of the CSR Program, the Riau Provincial Government formed a CSR Forum led by the Governor of Riau, which oversees the implementation of corporate CSR in Riau Province.