Legal Analysis of Corporate Social and Environmental Responsibility Based on the Principles of Good Corporate Governance (A Case Study of Pt Lontar Papyrus Pulp & Paper Industry)

Abstract

Good Corporate Governance (GCG) and Corporate Social Responsibility (CSR) are pivotal concepts in sustainable modern corporate management. This study comprehensively examines the definitions, fundamental principles, implementation practices, and interrelationship between GCG and CSR within the Indonesian business context. A normative juridical research method was employed, focusing on the analysis of legal norms and the application of rules within the framework of prevailing positive law. Data were sourced from scientific literature, corporate annual reports, national regulations, and official policy documents pertaining to GCG and CSR. PT LPPPI was selected as a case study to assess the extent to which Corporate Social and Environmental Responsibility (TJSL) obligations translate potential environmental impacts into tangible ecological protection, as well as to determine whether TJSL implementation aligns with GCG principles. The findings demonstrate that GCG—through transparency, accountability, responsibility, independence, and fairness—strengthens the credibility and effectiveness of CSR practices. Field observations confirm that PT LPPPI has implemented TJSL activities, complies with applicable regulations, and applies GCG principles. Nevertheless, continuous evaluation of all TJSL programs is recommended to ensure intended outcomes are achieved and initiatives align with community needs and capacities.