Environmental and Corporate Social Responsibility Limited Company has been Regulated by The Government and East Java Provincial Government

By: Satriya Nugraha, SP
Ecotourism Consultant, Entrepreneurial Machine Shredded Fish “BONIK”
Candidates for the Regional Representatives Council of Indonesia from East Java Province 2014-2019
Youth of Malang City, East Java Province
satriya1998@gmail.com; satriya1998@yahoo.com

Social and environmental responsibility Corporate Limited aims to realize sustainable economic development to improve the quality of life and environment for the benefit of local communities and society in general as well as a Limited Liability Corporate itself in the context of a Limited Liability relations harmonious, balanced, and in accordance with the environment, values, norms, and culture.In Government Regulation No. 47 of 2012 on Corporate Social Responsibility Company Limited is a Limited Liability Company whose business activities in the field and / or related to the natural resources required to implement social and environmental responsibility. Activities to the obligations of social and environmental responsibility must be budgeted and accounted for as expenses of the Company are carried out by considering the appropriateness and reasonableness.

In Government Regulation No. 47 of 2012 on Corporate Social Responsibility Company Limited is set on: the social and environmental responsibility by the Company in conducting its business activities in the field and / or relating to natural resources under the Act; implementation of social and environmental responsibility carried out inside or outside the Company; social and environmental responsibility be implemented based on the annual work plan which includes action plans and budgets required for implementation.

Then set also on activities of social and environmental responsibility developed by considering the appropriateness and reasonableness; implementation of social and environmental responsibility must be loaded in the Company’s annual report to be accountable to the AGM; assertion sanction arrangements that do not implement the Company’s social and environmental responsibility and liability has limited the role and carry out social and environmental responsibility can be given an award by the relevant authorities.

Do not forget also, East Java Province DPRD was first passed, Java law No. 4 of 2011 on Corporate Social Responsibility as a means to reduce poverty in East Java Province. Java regulation is an attempt to achieve welfare and prosperity of society and the preservation of the environment in the region of East Java Province is an integral part of the implementation of the Regional Government of East Java Province. Then the law of East Java can be done well if the synergistic relationship exists between local governments and the perpetrators of the world business and society. That the perpetrators of the business gained in convenience and protection try and be given the opportunity to participate in a wider socio-economic empowerment of communities and environmental conservation in all its aspects. Java regulation is to implement the mandate of Article 74 of Law Number 40 Year 2007 regarding Limited Liability Company contains a provision that the company is conducting its business activities in the field and / or related to the natural resources required to implement social and environmental responsibility by allocating funds accounted for as expenses companies whose implementation is done by considering the propriety and duty.

While article 15 of Law Number 25 Year 2007 about Investment requires each investor in Indonesia implement corporate social responsibility, respect for cultural traditions around the location of investment business activities and comply with all applicable laws and regulations. On the other hand, Corporate Social Responsibility (TSP) is a concept whereby companies decide to contribute to society in order to better their lives, and environmental conditions remain intact and not damaged function. Indonesia is currently seeking a conception of values ​​is through the adoption of global thinking and local level to encourage corporate social responsibility to adhere to a fixed with reference to the concept of TSP as part of their corporate identity.

There are several factors that influence the management over the implementation of the Corporate Social Responsibility account, among others: a. New concerns and expectations of the community, consumers, governments and investors in the context of globalization and changes in the behavior of the elements of the corporate environment (business environment); b. Increasing social criteria that influence the investment decisions of individuals and institutions both as consumers and as investors; c. Demonstrate awareness of the environmental damage caused by economic activity, and d.transparency of business activities brought about by the media and modern information and communication technologies.

In conducting its business the company does not only have obligations that are economically and legally, but also have an ethical obligation. Business ethics is the behavior guidance for businesses to be able to distinguish what is good and what is not good, which is allowed and what is not done by the business community. Concern to local communities and the environment, including natural resources, can be interpreted very widely. But in brief can be understood as an increase in participation and placement of corporate organizations in a social community through various efforts together for the benefit of companies, communities and the environment. Awareness about the importance of the TSP is a global trend in line with the increasingly widespread concern prioritize stakeholders. Corporate Social Responsibility is in addition to being the application of the principles of good corporate governance is also related to supporting the achievement of the Millennium Development Goals (MDG’s), one of which is the reduction of poverty every year.

Corporate Social Responsibility is also useful for the realization of public accountability, build and strengthen the image, confidence, social security, strengthening the investment and corporate sustainability. For society, the TSP is useful for the protection and welfare of the people in the social dimension of economic, environmental comfort and reduce the gap and remoteness. Useful for the government to foster the implementation of TSP and synchronizing joint commitment of government programs with private parties to be implemented in a systematic and continuous in the acceleration of development.

Thus, the final conclusion of Social Responsibility Company Limited is a process to manage the company’s relationships with various stakeholders who can have a real impact on the social licensefor their operations in an area. As a standard implementation can be referred to for example the principle of Corporate Social Responsibility of the United National Global Compact and the benchmark ISO 26000 Social Responsibility and formulated by the International Organization for Standardization ( ISO) in September 2004, named Guidance Standard on Social Responsibility. To assess the implementation of Corporate Social Responsibility (including environment) in a sustainable report , there are three types of disclosure standards by the Global Reporting Initiative ( GRI), namely (1) strategy and TSP profiles, (2) management approaches, and (3) performance indicators.For each standard has a reference in expressing the Corporate Social Responsibility and environmental sustainability report.