The Corporate Social Responsibility Regulation in the Development of Business Law: Comparison of Indonesia and Thailand

Abstract

The regulatory approach to CSR in Indonesia is mandatory through legislation, while in Thailand, it emphasizes a voluntary approach based on incentives, analyzing its impact on corporate behavior, sustainable development, and the effectiveness of CSR implementation. The purpose of this research is to analyze the differences in CSR regulations between Indonesia and Thailand, as well as to identify the strengths and weaknesses of each approach in influencing the implementation of corporate social responsibility towards society and the environment. This study employs a normative legal method with a legislative approach to analyze the differences in CSR regulations between Indonesia and Thailand, using primary, secondary, and tertiary legal materials analyzed descriptively, analytically, and comparatively. The research findings reveal that the differences in CSR regulations between Indonesia and Thailand reflect contrasting approaches in the implementation of corporate social responsibility. Indonesia mandates CSR through legislation, providing legal certainty and formal oversight, though often resulting in programs that tend to be formalistic and lack innovation. On the other hand, Thailand adopts a voluntary approach that promotes flexibility and creativity, enabling companies to focus more on long-term sustainability, although participation is often limited to large corporations. These differences highlight that Indonesia's mandatory regulation is more effective in ensuring compliance, whereas Thailand's voluntary approach excels in fostering innovation and local relevance.