Reformulating Corporate Responsibility in the Modern Business Era as an Effort to Strengthen Consumer Protection

Abstract

The reformulation of corporate responsibility in the modern business era has become an urgent legal necessity in ensuring fairness and accountability within the Indonesian corporate governance framework. The legal basis for corporate liability was established through Law No. 40 of 2007 on Limited Liability Companies, which defines corporations as legal entities with independent rights and obligations. This framework is complemented by the Consumer Protection Law, which protects consumers' rights to safety, accurate information, and fair treatment in commercial transactions. In addition, Article 1365 of the Indonesian Civil Code provides a general tort principle for unlawful acts, which allows consumers to seek compensation for losses caused by corporate violations. These laws collectively serve as the normative basis for linking corporate law with consumer protection. Furthermore, Government Regulation No. 47 of 2012 concerning Corporate Social and Environmental Responsibility and Financial Services Authority (OJK) Regulation No. 21/POJK.04/2015 concerning Good Corporate Governance (GCG) reinforce companies' obligations to operate ethically, transparently, and responsibly towards stakeholders.

This study uses a normative juridical method with a legislative, conceptual, and comparative approach to analyze the reformulation of corporate accountability in line with national and international legal standards. This study also refers to the United Nations Guidelines for Consumer Protection (2016) and the OECD Principles of Corporate Governance (2015), which emphasize transparency, fairness, and accountability as universal principles of corporate behavior. The findings show that the corporate legal framework in Indonesia is still fragmented, with inadequate integration between corporate governance and consumer protection mechanisms. Therefore, a model for reformulating corporate accountability is needed to harmonize corporate law, civil law, and consumer law under a single integrated system based on good faith, fairness, and social responsibility. Strengthening the enforcement of GCG and CSR as binding legal obligations will ensure that corporations act not only as profit-seeking entities but as responsible, ethical, and legitimate institutions committed to consumer welfare and sustainable development.