Legal Policy on Criminal Sanctions Regulation Related to Limited Liability Companies That Do Not Implement Social and Environmental Responsibility

Anak Agung Ayu Windah Wisnu Kesuma Sari, Kadek Adi Januarsa Sudharma, I Gede Agus Kurniawan

Abstract


The ambiguity in the regulations concerning sanctions for limited liability companies (LLCs) that fail to fulfill their social and environmental responsibilities renders the enforcement of such regulations ineffective. This study aims to analyze the legal implications of the ambiguity in regulations related to social and environmental responsibilities for LLCs, as well as the legal politics surrounding criminal sanctions for LLCs that fail to comply with these responsibilities. This research is a normative legal study employing a conceptual and legislative approach. The findings underscore that the legal implications of the ambiguity in regulations concerning sanctions for LLCs that do not adhere to social and environmental responsibilities render these regulations mere "paper tigers," with normative provisions lacking accompanying sanctions, thereby affecting the application and enforcement of the law against non-compliant LLCs. Furthermore, the ambiguity in sanctions, as outlined in the Company Law, the Omnibus Law on Job Creation, and the Government Regulation on Social and Environmental Responsibility, means that LLCs failing to meet these responsibilities might evade sanctions due to the absence of specific rules regarding sanctions applicable to such non-compliance. The legal politics surrounding criminal sanctions for LLCs that neglect their social and environmental responsibilities are proposed in two alternatives: the imposition of criminal sanctions in conjunction with administrative sanctions or the exclusive application of criminal sanctions with a maximum fine.


Keywords


Limited Liability Company, Criminal Sanction, Social and Environmental Responsibility

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DOI: https://doi.org/10.24815/sklj.v8i2.40742

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