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Business and Human Rights Law and Policy
Published by Center for Law and Responsible Business Studies
ISSN : -     EISSN : 31104762     DOI : -
Core Subject : Social,
Law, Crime, Criminology & Criminal Justice
The Business and Human Rights Law & Policy Journal is a multidisciplinary journal which focuses on responsible business conduct, human rights, sustainability both in legal and policy perspectives, and encouraging the global south point of views.
Arjuna Subject : Ilmu Sosial - Hukum
Articles 18 Documents
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The Concept of Corporate Social Responsibility and Social Enterprise: The Pursuit of Social Responsibilities in Business Practise Ardian Firmansyah
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Abstract

Corporate Social Responsibility (CSR) emphasizes addressing social and environmental issues often neglected by corporations. In the modern era, CSR has evolved to align with strategic management and corporate governance, guiding businesses toward ethical and sustainable practices. It contributes to economic development by supporting government efforts to boost per-capita income. However, critics argue that CSR has yet to reach its full potential. A key concern is the conflict between profit generation and social responsibility. Economist Milton Friedman asserts that CSR's focus on societal issues undermines a company's primary goal of generating income. Additionally, the legal framework for CSR remains weak. For example, the United Kingdom's Companies Act 2006 provides limited guidance, with no explicit provisions mandating CSR. This legal gap underscores the need for stronger legislative backing to enhance CSR's effectiveness and relevance. Social enterprises present a potential advancement of CSR principles. These organizations prioritize creating social impact over generating profits for shareholders, integrating community welfare into their core operations. In Europe, social enterprises demonstrate CSR at an advanced level, promoting sustainable social and economic growth. This research examines CSR's benefits for companies, the impact of legal reforms on enhancing its effectiveness, and the relationship between CSR and social enterprises. It explores whether aligning CSR with community welfare and corporate profitability is achievable. The study also investigates how a legal framework supporting CSR can ensure its significance in balancing business goals with societal responsibilities.
Assessing the Possibilities of PCA as a Legal Avenue to Seek Compensation in the Aftermath of the Montara Oil Spill Alexander
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Abstract

The 2009 Montara Oil Spill, caused by the caused by the blowout of an offshore oil well operated by PTT Exploration and Production Public Company (PTTEP) Australasia (Ashmore Cartier) Proprietary Limited, had severe environmental and economic consequences for Indonesia. This article assesses the possible legal proceedings available to Indonesia for seeking compensation against Australia and PTTE AA in international tribunals, specifically the Permanent Court of Arbitration (PCA). That is to take account of liability with respect to relevant international law principles, including those pertaining to state responsibility and liability for transboundary harm as well as infringement of Indonesia's sovereign rights over its exclusive economic zone. The discussion will analyze the legal merits, jurisdictional aspects, and potential challenges associated with pursuing these legal proceedings in PCA.
Human Rights Due Diligence as a Tool to Prevent Human Rights Violation by TNCs: An Assessment of the Current Regulations Joel Niyobuhungiro
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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This paper explores the role of Human Rights Due Diligence (HRDD) as a tool to prevent human rights violations by Transnational Corporations (TNCs). Despite their contributions to economic development, TNCs often engage in activities that undermine fundamental human rights. This study evaluates the effectiveness of HRDD frameworks, focusing on the UK Modern Slavery Act (2015) and the French Duty of Care Law (2017). The research compares these regulations in terms of scope, corporate compliance mechanisms, and overall impact on mitigating human rights violations. Findings reveal that while these frameworks provide foundational steps toward accountability, significant gaps persist, such as limited applicability to certain corporations and insufficient reporting standards. This paper highlights the need for internationally binding instruments to regulate TNCs comprehensively and improve human rights compliance.
Minimum Wage Setting: A Comparison of Wage Formulation in Indonesia and Malaysia Lalu Hadi Adha; Zaeni Asyhadie; Rahmawati
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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The enactment of wage regulations through Government Regulation (GR) No. 51 of 2023, as an amendment to GR No. 36 of 2021 concerning Wages, raises many different opinions. The government claims that GR No. 51 of 2023 is better than the existing wage regulations in terms of preventing gaps or disparities in minimum wages between regions, therefore the minimum wage of workers will certainly increase in the year 2024. Likewise, the GR No. 51 of 2023 will be the basis in determining the minimum wage for the year 2024 and beyond. Meanwhile, the opinion of workers in on the opposite, the new regulation has the potential to make workers unable to obtain a wage increase in the following year. As several articles contained in GR No. 51 of 2023 is unclear, there may be no increase in the minimum wage. This article aims to analyze the differences and similarities in the wage legal system applicable in Indonesia and Malaysia. Whether the regulations have been able to protect the rights of Indonesian workers, and how to formulate minimum wage setting that can provide protection and legal certainty for workers. This article is doctrinal legal research which by analyses and interpreting the applicable wage rules and regulations, particularly on the determination of the national minimum wage, and comparing them with the wage setting regulations applicable in Malaysia. Similarities and differences is examined in the minimum wage determination rules in Indonesia and Malaysia. It is found that there is a need for an effective regulatory framework that can adapt to the dynamics of the global economy while ensuring adequate protection for all workers.
Tackling Forced Labour in Supply Chains: The Brazilian Case Harada Mirra, Margarida Maria
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Despite the global prohibition of slavery and the widespread implementation of legal frameworks to combat forced labour, this illegal practice remains widespread, particularly in complex global supply chains. Given this worrying scenario, exacerbated by the expansion of cross-border manufacturing, this study critically examines the effectiveness of existing laws in addressing forced labour in supply chains, with a particular focus on international legal instruments and Brazil’s anti-slavery legislation. Brazil was chosen as a case study due to its comprehensive and robust legal framework against forced labour, but persistent incidence of modern slavery cases. Using the traditional research method, this paper conducts a conceptual and theoretical analysis of Brazilian anti-slavery laws, incorporating an examination of relevant international and national legislation, case law and treaties. By examining the Brazilian case study, this article aims to provide valuable insights for other developing countries facing similar challenges. It demonstrates that modern slavery persists in environments where legal enforcement is weak, public institutions are ineffective, and institutional support is lacking.
Examining the Indonesia FATF Membership to Combat Money Laundering in Natural Resources Sector Gisela Keyla; Auralia Rizki Putri
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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The aim of this study is to shed light on Indonesia's decision to become a full member of the Financial Action Task Force (FATF) and examine its impact on money laundering within the country's mining, forestry, and fishery sectors. The research follows a deductive approach, attempting to respond to the question: How does full FATF membership contribute to eradicating money laundering in Indonesia's mining, forestry, and fishery sectors? This article employs doctrinal legal research method, which analyzes and interprets existing rules, principles, and case law. The paper finds that FATF membership is advantageous for Indonesia, as it helps address the gaps and challenges the country faces in tackling money laundering in the natural resources sector. Specifically, it addresses Indonesia’s struggles in mutual legal assistance in extradition and asset confiscation, beneficial owner tracking, regional and international financial sector collaboration, and other internal issues. Furthermore, FATF membership demonstrates Indonesia's strengthened commitment to tackling money laundering in the natural resources sectors.
The Board Duty to Comply with Good Corporate Governance Principles under the Australian and Indonesian Company Law Tangkau, Daniel Julian
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Abstract

In the field of private economic activities, the formulation of a legal entity or a legal form chosen to run the business is a crucial part to be decided in the first place. In Indonesia, there are various forms of legal entity, such as sole trader, firm, commanditaire venootschap, limited liability corporation, and cooperation, in which the limited liability corporation is deemed as the most dominant form. Similarly, companies in Australia are dominated by limited liability corporations. In the light of setting up a company, the corporate governance aspect is an essential element that shall be highly upheld. This article compares the law on limited liability company in both Indonesia and Australia, as there is a significant difference in how both countries structuring the boards. The Indonesian company has two-tier boards: the board of directors and the board of commissioners, while the Australian company only has one, which comprises only the directors. Considering this difference, it is hypothetical that both systems have different approaches toward the compliance of corporate governance principles. This paper will discuss two issues: first, the overall comparison of board structure between Indonesian and Australian companies and the duty of the board. Second, discussion and criticism towards the compliance and implementation of corporate governance principles by each board system. It is notable that the company board system in both countries was formed by a long history of culture, politics, and law. Therefore, this paper aims not to make a simplistic conclusion of whether the one-board system in Indonesian companies is better than the two-board system in Australia or vice versa.
Balancing the State and Transnational Corporate Responsibility in the Protection of Transboundary Air Pollution Abdurrahaman, Ahmad Yahaya; Edward-Ekpo, Cyprian Friday
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Transboundary air pollution (TAP) represents a significant global challenge that necessitates a nuanced equilibrium between state responsibility and the accountability of transnational corporations. This scholarly article delves into the intricacies and obstacles inherent in striking this balance, employing a comprehensive examination of case studies, legal frameworks, and international precedents. The central objective of this inquiry revolves around determining the degree to which states and corporations should bear responsibility for transboundary harm as an infringement on Environmental Rights. The renowned Trail Smelter’s case serves as a crucial example, shedding light on the assignment of liability to a privately owned company and the relevance of delving into international liability. This study highlights the Trail Smelter case and other TAP instances, emphasizing their significant role in shaping International Environmental Law (IEL). Despite these notable advancements, the article concludes that challenges persist in addressing TAP. As exemplified in Trail Smelter’s case, beyond the identification of pollution sources, grappling with issues of causation and determining state responsibility proves to be complex, particularly when pollution traverses vast distances, a disconcerting problem arises regarding the direct accountability of corporations for their actions without involving states at the international level. To address this issue, the research recommends enhancing international cooperation via agreements and information-sharing, establishing comprehensive monitoring systems with transparent data reporting, and fostering corporate accountability and sustainable practices through robust national and internal regulatory frameworks. These frameworks should prioritize principles like the polluter pays principle, Equator Principles, Precautionary Principle, and due diligence.
Front Matter Volume 1 No. 1, February 2025 BHRLAWPLY
Business and Human Rights Law & Policy Vol. 1 No. 1 (2025): Business and Human Rights Law & Policy - February
Publisher : Center for Law and Responsible Business Studies

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Front Matter Volume 1 No. 1, February 2025
Approaches to Abuse of Dominance in EU Competition Law: Lesson Learned and Consumer Protection Yorgita Pascallanda; Joy Andrea Sihombing
Business and Human Rights Law & Policy Vol. 1 No. 2 (2025): Business and Human Rights Law & Policy - August
Publisher : Center for Law and Responsible Business Studies

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Abstract

Competition law has several main objectives, which are: economic welfare, economic efficiency, and free and fair competition. Among such objectives, economic efficiency exists when available resources are allocated to their best use and the goods and services are distributed to individuals who appreciate them the most. For consumers, this leads to lower prices, higher quality of goods and service, and wider choices in the market, and increased innovation. By deterring anti-competitive conduct, competition law helps ensure that consumers are protected from conducts that may harm them. EU competition law has undergone significant changes to maintain competitive markets. The EU’s initial approach to abuse of dominant position focused more on the form of the undertakings’ conduct (form-based), which only assessed an action based on its form. This form-based approach is risky in producing false positives, that is, the wrong conclusion that an action is considered detrimental, when in practice, it may not actually be detrimental to competition or consumers. in applying Article 102 of the Treaty on the Functioning of the European Union (TFEU). In this regard, the Commission published a Discussion Paper indicating that the Commission planned to update its approach to Article 102 TFEU in 2005. This article will critically analyse the Guidance, its revision, and the changes between them to determine whether these concerns are justified or simply unfounded. It begins with an introduction and explores the prohibition of abuse of dominant position under Article 102 TFEU. It then continues with a discussion of the Guidance and its revisions and continues with key changes in the amending communication. An analysis of the changes will be provided, and followed by lessons, notably for Indonesia on ways to improve its enforcement of abuse of dominance to protect consumers’ interest.

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