Study of Islamic Law in The Implementation of Corporate Social and Environmental Responsibilities in Indonesia

Abstract

This paper examines the nature of the Corporate Social and Environmental Responsibility in Indonesia as stipulated in the legal system in Indonesia to require companies in Indonesia to carry out their responsibilities to the community in the company environment where they operate. Obligations that are ordered through these laws and regulations have consequences in the form of sanctions given to companies that do not implement programs to empower communities around the company. In Islamic law teaches that the true best of human beings is beneficial for many people, and Islam also teaches mankind as rahmattan lil 'alamin is one of several teachings that are closely related to the existence of a company that in carrying out its activities is not only pursuing unilateral profit but the benefits obtained are having an impact on the wider community that is sustainable communally. In the Qur'an it is also stated that one of them is Surat Al Baqarah verse 11 which essentially states, "... Do not make damage on Earth ...". Besides that, the activity of social care is mandated in Sura Al-Hadid verse 18, 125 "indeed those who give charity, men and women, and lend to Allah a good loan, will undoubtedly be multiplied to them; and for them a lot of reward ". In essence, Social and Environmental Responsibility for Companies in Indonesia has three basic principles, namely Economic Democracy, Economic Welfare, Economic Sustainability. This will lead to a situation where Indonesia is approaching the harmony of interaction between the community, the company and the government so as to create a conducive investment climate. on fair welfare. Legal substances in Indonesia currently do not support the optimization of the implementation of Social and Environmental Responsibility for Companies in Indonesia. Countries as regulators must improve the Form of Policy, Institutionalization, Implementation, Monitoring and Evaluation. Reports on these activitis must be submitted to the state should have an institution specialized in the field of social and environmental responsibility which has the authority to determine the budget barometer based on "propriety and fairness". At the level of religious people who are Muslim majority Social and Environmental Answers companies are ideally understood as worship through charity which is useful for many people.