Open AccessAnalysis of CSR Legislation in Indonesia: Mandate to Business
Author(s) -
Rabin Ibnu Zainal
Publication year - 2019
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v9i3.14978
Subject(s) - legislation , mandate , corporate social responsibility , business , government (linguistics) , developing country , order (exchange) , accounting , local government , public administration , economic growth , public relations , finance , law , political science , economics , philosophy , linguistics
Indonesia was one of the first countries in the world to implement legislation mandating businesses to undertake Corporate Social Responsibility (CSR). Different with other countries with their voluntary approach of CSR, the legislation makes CSR as a mandate to business in Indonesia. Through document analysis method, this study analyses six laws related to CSR in Indonesia to define the mandate of CSR legislation in order to understand the form of CSR should be practiced by companies operating in Indonesia. Indonesia as one of the developing countries may require sufficient fund for their local development. CSR may be seen as a source of fund for local development. Therefore, CSR legislation in the country provides mechanism for wealth or resource distribution of companies for local government to develop local communities.