Conceptualizing the Doctrine of Reasonableness and Fairness in Corporate Social Responsibility as a Corporate Duty: A Legal Constructivist Perspective
Abstract
The mandatory implementation of Corporate Social Responsibility (CSR) within Indonesian corporate law triggers severe normative clashes by delegating financial obligations to abstract principles of propriety and fairness. The absence of definitive quantitative parameters within legislation degrades public legal duties into administrative voluntary discretions, actively facilitating funding allocation disparities and corporate budget manipulation. Previous literature remains trapped in normative critiques regarding absent sanctions without formulating substitute technical parameters. To overcome this blind spot, this research aims to conceptualize the propriety norm into an absolute and binding mathematical measurement. This doctrinal study evaluated sectoral regulations and sustainability reporting data using statutory alongside conceptual approaches. The analysis demonstrates that allowing corporations to autonomously interpret propriety boundaries acts as a legal loophole legitimizing commutative injustice for affected communities. Through the analytical lens of Legal Constructivism Theory, the propriety principle is not left as static text, but rather reconstructed into a binding consensus instrument negotiating state authority, corporations, and local communities. This study recommends quantitative norm standardization based on industrial sectoral risk segmentation and absolute minimum net profit proportion mandates. Comparative practices across global capital regulatory regimes prove that imposing fixed percentages never destroys the investment climates, but guarantees regulatory certainty.
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DOI: https://doi.org/10.5281/zenodo.23422702
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