FROM VOLUNTARY CORPORATE SOCIAL RESPONSIBILITY TO MANDATORY CORPORATE RESPONSIBILITY: A COMPARATIVE LEGAL ANALYSIS OF REGULATORY APPROACHES IN THE MINING SECTOR

Abstract

This research examines the effectiveness and necessity of mandatory corporate responsibility frameworks by comparing regulatory approaches in the mining sector in Indonesia, India, and the European Union, and with implications for Myanmar. The issue of this research is based on the unenforceable Corporate Social Responsibility (CSR) under Myanmar’s laws, although there is Myanmar’s legislation on investment, environmental, and mining that indirectly and voluntarily refer to CSR obligations. This leads to continuous degradation of the environment, resettlement of local communities, and social conflict in Myanmar. Using doctrinal and comparative legal approaches, this paper will examine the differences in regulatory strategies used in Indonesia, India, and the European Union, which include incorporation of CSR obligations into company laws, mandatory CSR expenditure, and due diligence, respectively. Research results prove that Indonesia's CSR strategy with reference to mining license, India's “comply or be penalized” approach based on fines, and the European Union extraterritorial value-chain due diligence all provide for an appropriate regulatory framework. Nonetheless, it can be seen that transplanting legal norms to Myanmar directly is infeasible. Instead, the paper suggests a contextual CSR mandate including sector-specific duties, improved transparency, community involvement, and graduated enforcement based on license penalties. This study adds value to the field of CSR research in that it shows that good governance in the extractive sector is not only about compliance with legal requirements but also about capability and integration of enforcement.

Keywords: Corporate Social Responsibility, Mining Sector Regulation, Comparative Legal Analysis, Mandatory CSR, Myanmar