Corporate Governance In Palm Oil Companies In Aceh Province

Safrina Safrina, Khairani Khairani


Nowadays, companies are not only required to provide information on financial accountability but also about corporate performance related to social and environmental aspects in order to promote shareholder values and sustainable practices, which eventually lead to the concept of corporate governance. This study aims to discuss the implementation of corporate governance, in palm oil companies in Aceh Province. A qualitative research method is applied with an empirical juridical approach. Data were collected by interviewing respondents and analyzing corporate reports. The result found that the implementation of corporate governence by the companies through the availability of code of good corporate governance (GCG) and code of conduct. Although it does not necessarily guarantee the implementation applied properly, but it can show company commitment to run a good business. Some companies also implement corporate social and environmental responsibility in a different approach. However, some of the activities are actually not in accordance with existing regulations, but is only limited to activities that have no direct impact on community.


Corporate governance; palm oil company; CSR

Full Text:




Walhi Aceh, Laporan investigasi, Perkebunan Kelapa Sawit dan Kaitannya dengan Tingkat Kesejahteraan masyarakat Singkil, 2015.

Monks, Robert and Minow, N., ‘Corporate Governance, Blackwell, UK, 1995.

National Committee on Governance, Indonesia’s code of Good Corporate Governance, 2006.

Sony Keraf, 2013, Tanggung Jawab Sosial Perusahaan Berbasis HAM in Abdul Hakim G. Nusantara, et. al, Tanggung Jawab Sosial Perusahaan Berdimensi HAM: Tinjauan Teori dan Prinsip-prinsip Universal dan Implementasinya di Indonesia, 2013, Komnas HAM, Jakarta.

Tricker, B 2009, Corporate governance: principles, policies, and practices, Oxford University Press, New York.


Aras, G. Crowther, D., ‘Governance and sustainability: An investigation into the relationship between corporate governance and corporate sustainability’, Management Decision, vol. 46, no. 3, 2008.

Clarke, ‘Theories of corporate governance: The philosophical foundation of corporate governance’, Routledge, London, New York, 2004.

Daily, CM, Dalton, DR & Canella, AA, 'Corporate governance: decade of dialogue and data ', Academy of Management Review, vol. 28, no. 3, 2003.

Font, X, Walmsley, A, Cogotti, S, McCombes, L & Hausler, N, Corporate Social Responsibility: the disclosure-performance gap, Tourism Management, vol. 33, no. 6, 2012.

Kotter P. Kotter and James L. Heskett, 1992, Corporate Culture and Performance, The Free Press, retrieved from

Marsden, C, ‘The new corporate citizenship of big business: part of the solution to sustainability’, Business and Society Review, vol. 105, no. 1, 2000.

Maignan, I & Ferrell, OC, 'Corporate social and responsibility and marketing: an integrating framework', Journal of the Academy of Marketing Science, vol. 32, no. 1, 2004.

Miko Kamal, Corporate governance and state-owned enterprises: A study of Indonesian’s code of corporate governance, Jurnal of International Commercial Law and Technology, vol. 5, no. 4, 2010.

Money, K., ‘Are CSR and corporate governance converging? A view from boardroom directors and company secretaries in FTSEI 100 companies in the UK’, Journal of General Management, vol. 33, no. 2, 2007.

Petrovic-Lazarevic, S, 'Good corporate citizenship in the Australia construction industry', Corporate Governance, vol. 10, no. 2, 2010.

Wiseman, J 1982, 'An evaluation of environmental disclosures made in corporate annual reports', Accounting, Organizations and Society, vol. 7, no. 1, 1982.

Internet sources

Organization for Economic Co-operation and Development (OECD) 2005, ‘Glossary of Statistical terms,

Rino Abonita, Prahara Sawit di Negeri Serambi Mekah, 2019, Retrived from ,,kelapa%20sawit%20di%20provinsi%20itu.

PT. Sucofindo (Persero), Sustanable Report: Committed to A Sustainable Future, 2018, Retrieved from

PT Asian Agri, Sustainability Report 2017-2018: Growing Sustainably Together with Smallholders, 2019, Retrieved from


Copyright (c) 2020 Syiah Kuala Law Journal

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.


Creative Commons License

Syiah Kuala Law Journal published by Magister Ilmu Hukum Fakultas Hukum Universitas Syiah Kuala is licensed under a Creative Commons Attribution 4.0 International License. Based on a work at