What responsibilities does the limited liability business have to the environment?

Private Law, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

^* Corresponding author: anggriani@umy.ac.id

Abstract

Economic development is very dependent on the parties involved in implementing the economy. Accordingly, the state is needed as a regulator or constitution maker in a country. An effort to the economic development of the community is through business. One of the business forms chosen by the community with a legal entity is a Limited Liability Company, which is regulated in Law Number 40 of 2007 concerning Limited Liability Companies. In running its business, a Limited Liability Company does not only think about the benefits of a Limited Liability Company but also must pay attention to the surrounding environment. The extent to which a Limited Liability Company cares about the surrounding environment. This research was conducted normatively, using applicable laws and regulations. This research aims to determine the social responsibility of a Limited Liability Company to the surrounding environment based on laws and regulations. Social and environmental responsibility has been regulated in Chapter V Article 74 of Law No. 40 of 2007 concerning the Company, and social and environmental responsibility, as referred to in Article 2, is an obligation for the Company that carries out its business activities in the field of and/or related to natural resources based on the Law, has been affirmed in Government Regulation Number 47 of 2012, about Social and Environmental Responsibility Limited Liability Company, and Limited Liability Company will get sanctions if it violates these regulations.