THE IMPLEMENTATION OF SOCIAL AND ENVIRONMENTAL RESPONSIBILITIES REGULATION BY PT KARYA TANGAN INDAH, BALI
The indonesian government has set a social day for the country smce 20 december2007. This determination is not intended for celebration only, but to encourage indonesian people to pay attention to social issues regardless their religion, tribe, race and ethic group. Private entities are also invited to actively participate in empowering the community and eradicating poverty through concepts of corporate social responsibilities. Because changes and shifts in business world paradigms in promoting business entities’ images, business entities both currently seek maximum profits arid pay attention to the neighborhoods where they operate. To avoid business entities’ image promotions to be entrapped into ceremonial activities through mass media, the government has passed a law concerning limited liability company no. 40 of 2007 where article 74 (uu. No 40, tahun 2007, pasal 74) of the law regulates further this issue. This law requires limited liability companies to set aside portions of their net profits for funding the social and environmental responsibility activities, particularly those operating in business activities related to natural resources. Although the law does not explicitly mention other companies apart from mining companies to contribute nor explicitly regulate the sum and/or percentage of the companies’ net profits to be distributed, it is hoped that other companies can follow the steps taken by the mining companies that are obliged to be sensitive and to pay attention to neighborhood environmental and ethical issues.