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en/indonesia-first-nation-on-earth-to-legislate-corporate-social-responsibility-legislature-passes-bill#c48862

Corporate social responsibility now the law in Indonesia

Author: Noke Kiroyan, managing partner of Kiroyan Kuhon Partners consulting firm, in Jakarta Post , Published on: 25 July 2007

It is now official. Indonesia has become the first nation on earth to legislate Corporate Social Responsibility (CSR) after the House of Representatives dismissed all objections from the business sector to pass the bill on Limited Liability Companies...the country needed such legislation because of the lack of understanding of CSR among Indonesian business people -- evident by their non-observance of existing laws on the environment... Initially, CSR was to be mandatory for all limited liability companies. But less than one week before the bill was passed into law, heavy opposition from the Indonesian Chamber of Commerce & Industry (KADIN) and other representatives of the business world compelled parliament to amend paragraph 74 on CSR by making it compulsory for companies in the natural resources sectors only... Almost as an afterthought, in verbal explanations by lawmakers, those industries producing hazardous waste such as hospitals are also included... CSR has entered into the laws of the country, but laws require implementing regulations within the next three months to make them operable.

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Related companies: Tata Group