Business Legal Framework and Challenges in Implementing Social Responsibility towards Local Communities in Large Investment Projects
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This study discusses the legal framework for business and the challenges of corporate social responsibility (CSR) towards local communities in large investment projects. Regulations in Indonesia have affirmed CSR as a legal obligation for companies engaged in or related to natural resources, as stipulated in the Limited Liability Company Law, Investment Law, and Environmental Protection and Management Law. In practice, the implementation of CSR faces challenges related to the interpretation of norms, weak supervision, and minimal participation of local communities. This research highlights the need for standardisation of implementation, transparency in reporting, and strengthening the capacity of local communities to ensure that the goals of social justice and environmental sustainability are truly achieved. This study is expected to serve as a reference for policy refinement and synergy between the government, business actors, and the community to achieve harmony between investment and the protection of local community rights.
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