Implementation of CSR by Limited Liability Companies Amidst the Covid-19 Pandemic Based on Law Number 40 of 2007 Endang Jaya, Bismar Nasution, Sunarmi, and Mahmul Siregar.
Universitas Sumatera Utara
Abstract
Based on Law Number 40/2007, economic activities undertaken by limited liability companies have the purpose and objective of obtaining profits. However, these companies are also obligated tomaintain the surrounding environment through CSR activities. This study analyzes the implementation of CSR by limited liability companies amidst the Covid-19 pandemic based on Law Number 40/2007. This is normative juridical research using a descriptive research method. Based on Article 74 (1) of Limited Liability Company Law, companiesare obligated to conduct social and environmental responsibilities. Furthermore,Paragraph 3 states that companies that do not fulfill the obligations as referred to in Paragraph (1) are subject to sanctions following the provisions of the law. However, the Limited Liability Company Law does not impose strict sanctions. It only states administrative sanctions according to Article 34 (1) of Law Number 25/2007 concerning company investment. The results show thatnot all companies have implemented CSR programs. Rather than administrative sanctions, criminal sanctions should be imposedonviolators, to ensure the implementation of CSR as a legal obligation.
