Explain the meaning of Corporate Social Responsibility (CSR) and provide an

example.

CSR stands for Corporate Social Responsibility. The word "Corporate" means company,
"Social" means social, and "Responsibility" means responsibility. So, corporate social
responsibility is a business activity in which the company is socially responsible to
stakeholders and the wider community as a form of concern for improving welfare and
having a positive impact on the environment. As we know, a large company will pose various
potential risks of damaging the environment. The existence of a CSR company is expected
to help reduce or even make this risk zero.

An example of a company implementing CSR is PT PLN (Persero). PLN is determined

to harmonize the development of the three aspects in electricity supply, namely
economic, social and environmental
in Law Number 25 of 2007 concerning Planting Capital has no limit on the form of the
company and its line of business, temporarily in Law Number 40 of 2007 concerning Limited
Liability Companies is only intended for the form of a special limited liability company
engaged in the field of Resources Natural and related, as stated in article 74 paragraph (1),
namely: "Company who carry out their business activities in the field of and or related to
natural resources Nature is obliged to carry out social and environmental responsibilities.”in
law regarding limited liability companies the obligation is aimed at improving the quality of life
the community, while CSR obligations for companies are in the Law on Planting Capital is
intended to create a harmonious relationship.
Are BUMN, BUMD and BUMDes bound by CSR obligations? Explain.
Regulations that require companies to carry out CSR are stated in Government Regulation
or PP No. 47 of 2012 concerning Social Responsibility and Limited Liability Companies. In
Articles 2 and 3 of the PP, it is stated that every company as a legal subject has social and
environmental responsibilities.So BUMN and BUMD as business entities certainly have an
obligation to implement this CSR or TJSL.
We can get the mandate for the implementation of CSR/TJSL for BUMN and BUMD find in
Law Number 19 of 2003 concerning Business Entities State Owned, Law Number 40 of 2007
concerning Companies Limited, Law Number 25 of 2007 concerning Investment. This law
requires companies or investors to carry out corporate social responsibility/CSR activities.
Article 2 paragraph (1) letter e of Law Number 19 of 2003 concerning Business Entities State
Owned states that SOEs are formed to participate actively provide guidance and assistance
to entrepreneurs of economic class weak, cooperative, and community. It mandates a form
of responsibility BUMN to the community, which can be realized through CSR or
responsibility Social and Environmental Responsibility.
In Article 92 (3) letter d Government Regulation Number 54 of 2017 mentioning the
implementation of good corporate governance encourages organs BUMD in making
decisions and carrying out actions based on values high morale and compliance with laws
and regulations, as well awareness of BUMD social responsibility towards stakeholders as
well as environmental sustainability around BUMD. however, for BUMDes it is not obligatory
to carry out CSR because there are no regulations that clearly state it, while it is said that it
is obligatory to carry out CSR for PTs which are business units that are legal entities under
the auspices of BUMDes as joint business units (holding) that are engaged and/or have an
impact in the field of natural resources.