^Supervisory Synergy: Local Government Oversight in Fostering Corporate Social Responsibility for a Green Economy^ Diana Setiawati1, Rizaldy Anggriawan2,Hary Abdul Hakim3
Ds170[at]ums.ac.id1 , anggriawan.rizaldy[at]stud.u-szeged.hu2 , haryabdulhakim[at]unimma.ac.id3,
Faculty of Law, Universitas Muhammadiyah Surakarta,Indonesia1,
Faculty of Law and Political Science, University of Szeged, Hungary2,
Faculty of Law, Universitas Muhammadiyah. Magelang,Indonesia3.
Abstract
Corporate Social Responsibility (CSR) is an obligation for every company in the form of a company which is regulated in Article 74 of Law no. 40 of 2007 concerning Limited Liability Companies. The company in its operations does not only focus on its goals only to earn profits but also must pay attention to the surrounding community where the company is located, so that the company also has a responsibility to its social environment which is known as Corporate Social Responsibility (CSR). This research investigates the dynamic interplay between local government supervisory mechanisms and corporate social responsibility (CSR) initiatives within the context of promoting a green economy. As businesses increasingly recognize their role in sustainable development, the role of local government oversight becomes crucial in ensuring the effective implementation of CSR practices. The study seeks to explore the strategies employed by local governments to supervise and incentivize businesses toward environmentally responsible practices, assessing the impact of such supervision on the overall success of CSR initiatives. In this research, the method used is normative-juridical empirical method, which in this study not only examines data from the literature but also examines data on events that actually occurred through observation, interviews, and so on. Additionally, the research examines the influence of these initiatives on stakeholder engagement and perceptions, considering the multifaceted relationships between businesses, local communities, and government bodies. Through a comprehensive analysis of case studies, regulatory frameworks, and stakeholder perspectives, this study aims to provide insights into how local government supervisory measures can synergize with corporate efforts, fostering a harmonious integration of CSR into the fabric of a green economy. The findings of this research are expected to contribute to a deeper understanding of the mechanisms that drive successful corporate-social-environmental collaborations and inform policy recommendations for optimizing the impact of CSR initiatives on sustainable development.
Keywords: Corporate Social Responsibility, Green Economy, Local Government Supervision, Stakeholder Engagement, Sustainable Development
