Article 1 point 3 The act no 40 of 2007 on Limited Company define’s social and
environmental responsibility as a commitment from a company to play role in the sustainable
economic development in order to elevate the quality of life and environment that resulting a
benefit for the company itself ,local community and society in general. Corporate Social
Responsibility (CSR) changes the purpose of business from single bottom line to the triple bottom
line, because company should make a stakeholders rapprochement within perpetrate the
business and involved in takling the environmental and social problem.
Corporate Social Responsibility (CSR), which has a noble purpose, not to mention this
being an global trend nowadays, has been regulated in The act no 40 of 2007 about Limited
Company,, though raised a pro and contra after being enacted. Besides, Article 74 The act no 40
of 2007 on Limited Company has a lot of weaknesses. Inconsistences and obscurity from the
form of CSR will result in the unreachable purposes from the regulation of CSR on The act no 40
of 2007 on Limited Company
This research using a normative method based on secondary data resources as a primary
data, analysis method with a qualitative measurement, and concludes the research using the
deductive thinking method. The writer of this research would like to give a recommendation in
considering the meaning of CSR being adjusted to several concepts that exist and regulate a
number of things in future Peraturan Pemerintah, such as: the standard of CSR, obligation of a
company to reporting the CSR from the company, supervising verification council and sanction
mechanism