KnE Social Sciences

Published date: Oct 31 2025

Journal Title: KnE Social Sciences

Issue title: The 8th Legal International Conference and Studies (LICS 2025): Corporate Responsibility and Environmental Law Through Economic & Business Management Practices

Pages: 112 - 123

DOI: 10.18502/kss.v10i27.20055

Nabih Ameramer575817@gmail.comDoctoral of Law Program, Universitas Islam Sultan Agung (UNISSULA), Semarang

The corporate legal framework centered on shareholder primacy and profit maximization has shown its insufficiency in addressing the issues posed by climate change and biodiversity loss, which increasingly jeopardize the planet’s sustainability. This study seeks to reconstitute the corporate law paradigm based on the tenets of ecological justice and the environmental, social, and governance (ESG) framework as a revolutionary initiative towards a more adaptable and sustainable legal structure. This paper employs a normative and conceptual legal method to analyze regulatory deficiencies and disparities within the Indonesian legal system, focusing on the inadequate ecological accountability of companies and the contradictions in policy shown in the Job Creation Law. The study’s findings indicate that significant amendments to the Limited Liability Company Law are necessary, alongside the introduction of new regulations that position ESG as a mandatory legal standard, to enhance corporate accountability for environmental harm and infringements on the rights of indigenous populations. This study provides an institutional framework for participative and ecologically fair ESG oversight, serving as a foundation for prospective reforms in Indonesian company law.

Keywords: corporate, ecological, justice, law

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