Criminal Liability of Multinational Corporate Leaders Against Dumping B3 Conducted by Branch Companies

Oct 13, 2025 by talynt.org 86 views

Criminal Liability of Multinational Corporate Leaders Against Dumping B3 Conducted by Branch Companies

Introduction

Establishing a branch company is a common strategy used by large corporations to develop their business, both domestically and in various countries. Transnational corporations, a type of corporation with branches in several countries, often engage in illegal practices, including crime dumping dangerous and toxic waste (B3). This criminal offense is often carried out intentionally or due to negligence, requiring legal instruments to account for transnational corporations. This study aims to analyze multinational corporate criminal accountability for B3 waste dumping conducted by their subsidiaries.

According to Article 60 of Law No. 32 of 2009 concerning Environmental Protection and Management, everyone is prohibited from dumping into the environment without permission. The main focus of this research is to find out how transnational corporate criminal accountability can be applied, especially in a situation where the leadership of the branch company is the party that gives an order to commit the crime of dumping. The complexity that arises in this case lies in the fact that the subsidiary is a separate legal entity, even though it is under the auspices of the transnational corporation.

Background

Transnational corporations have become a dominant force in the global economy, with many operating in multiple countries. However, this has also led to concerns about the environmental and social impact of their operations. Dumping B3 waste is a serious environmental crime that can have devastating consequences for local communities and ecosystems. In Indonesia, for example, the government has implemented laws and regulations to prevent environmental pollution, including the prohibition on dumping waste into the environment without permission.

Methodology

This study adopted a normative law approach with descriptive analysis, where data collection was carried out through literature studies. The results showed that to demand transnational corporate criminal accountability, several factors must be considered. First, aspects of giving orders or leaders of activities involved in criminal acts, as stipulated in Article 116 paragraph 1 of Law No. 32 of 2009, very influential on the accountability charged. In addition, the geographical location of the parent company and subsidiary also plays an important role in the applicable legal context.

Factors Influencing Transnational Corporate Criminal Accountability

Several factors must be considered when demanding transnational corporate criminal accountability. First, aspects of giving orders or leaders of activities involved in criminal acts are very influential on the accountability charged. This is because the leadership of the branch company plays a crucial role in determining the direction and actions of the subsidiary. In addition, the geographical location of the parent company and subsidiary also plays an important role in the applicable legal context.

Furthermore, aspects of citizenship of each corporate leader and subsidiary can affect the effectiveness of criminal law, as regulated in Article 2-9 of the Criminal Code (KUHP). This shows that there is a limit to the effectiveness of criminal law that will affect the relationship between subsidiaries and their parent corporations.

Conclusion

Effective law enforcement in the case of B3 waste dumping by transnational corporate subsidiaries requires a deep understanding of the organizational structure and responsibilities of each party involved. Collaboration between legal authority and corporate parties is needed to create compliance with environmental law, as well as to protect the environment from harmful dumping practices. This study highlights the importance of considering the role of the parent corporation in transnational corporate criminal accountability.

Recommendations

Based on the findings of this study, several recommendations can be made. First, the government should strengthen the legal framework to hold transnational corporations accountable for environmental crimes committed by their subsidiaries. This can be achieved by implementing stricter regulations and penalties for environmental crimes. Second, the government should also establish a mechanism for collaboration between legal authority and corporate parties to create compliance with environmental law.

Limitations

This study has several limitations. First, the study only focuses on the legal aspects of transnational corporate criminal accountability, without considering the social and economic impacts of environmental crimes. Second, the study only examines the case of B3 waste dumping, without considering other types of environmental crimes.

Future Research Directions

This study highlights the need for further research on transnational corporate criminal accountability. Future research should focus on the social and economic impacts of environmental crimes, as well as the effectiveness of collaboration between legal authority and corporate parties. Additionally, future research should also examine other types of environmental crimes, such as pollution and habitat destruction.

References

Law No. 32 of 2009 concerning Environmental Protection and Management
Article 116 paragraph 1 of Law No. 32 of 2009
Article 2-9 of the Criminal Code (KUHP)
Various literature studies on transnational corporate criminal accountability and environmental crimes.
Frequently Asked Questions (FAQs) on Criminal Liability of Multinational Corporate Leaders Against Dumping B3 Conducted by Branch Companies

Q: What is the main focus of this study?

A: The main focus of this study is to analyze multinational corporate criminal accountability for B3 waste dumping conducted by their subsidiaries.

Q: What is B3 waste?

A: B3 waste refers to dangerous and toxic waste that can have devastating consequences for local communities and ecosystems.

Q: Why is it difficult to hold transnational corporations accountable for environmental crimes committed by their subsidiaries?

A: The complexity that arises in this case lies in the fact that the subsidiary is a separate legal entity, even though it is under the auspices of the transnational corporation.

Q: What are the factors that influence transnational corporate criminal accountability?

A: Several factors must be considered when demanding transnational corporate criminal accountability, including aspects of giving orders or leaders of activities involved in criminal acts, geographical location of the parent company and subsidiary, and citizenship of each corporate leader and subsidiary.

Q: What is the role of the parent corporation in transnational corporate criminal accountability?

A: The parent corporation plays a crucial role in determining the direction and actions of the subsidiary, and therefore, should be held accountable for environmental crimes committed by their subsidiaries.

Q: What is the importance of collaboration between legal authority and corporate parties in creating compliance with environmental law?

A: Collaboration between legal authority and corporate parties is needed to create compliance with environmental law, as well as to protect the environment from harmful dumping practices.

Q: What are the limitations of this study?

A: This study only focuses on the legal aspects of transnational corporate criminal accountability, without considering the social and economic impacts of environmental crimes, and only examines the case of B3 waste dumping, without considering other types of environmental crimes.

Q: What are the future research directions?

A: Future research should focus on the social and economic impacts of environmental crimes, as well as the effectiveness of collaboration between legal authority and corporate parties, and should also examine other types of environmental crimes, such as pollution and habitat destruction.

Q: What are the recommendations for the government?

A: The government should strengthen the legal framework to hold transnational corporations accountable for environmental crimes committed by their subsidiaries, and establish a mechanism for collaboration between legal authority and corporate parties to create compliance with environmental law.

Q: What are the implications of this study for policymakers and practitioners?

A: This study highlights the importance of considering the role of the parent corporation in transnational corporate criminal accountability, and the need for collaboration between legal authority and corporate parties to create compliance with environmental law.

Q: What are the potential consequences of not addressing transnational corporate environmental crimes?

A: The potential consequences of not addressing transnational corporate environmental crimes include continued environmental degradation, loss of biodiversity, and harm to human health and well-being.

Q: What are the potential benefits of addressing transnational corporate environmental crimes?

A: The potential benefits of addressing transnational corporate environmental crimes include the protection of the environment, preservation of biodiversity, and promotion of human health and well-being.