1.

Of course, every company has the main goal of achieving financial benefits in order to strive for
business continuity, but financial benefits for the prosperity of investors are not the only goal in
running a business. Explain this statement using the concepts of Shareholder Theory and Stakeholder
Theory, and provide examples in modern business practices.

Shareholder theory is a theory that can maximize the profits earned by its shareholders. and if the
company is doing something that has nothing to do with making a profit then the shareholders will try
to sell their shares by using the funds to buy shares in some other company that is better at making
profits. An example of this theory is that GreenRoof is a small lawn care company with three investors,
ten employees, and a client base of 50 households.

Stakeholder theory is a business ethics perspective where company managers have an obligation to
balance the interests of stakeholders in running a business. For example Self Vehicle Company, which
recently went public, is producing next-generation vehicles equipped with self-driving mechanisms.
Executives want to please the shareholders who invest in the company and aim to increase the share
price. They run their business according to this theory rather than the shareholder theory, prioritizing
the various groups of people who contribute to the success of their business.

2. In implementing Good Corporate Governance (GCG), it is necessary to have BoD and BoC whose
roles are in accordance with applicable regulations. Provide an explanation of the differences in duties
and functions between the BoD and the BoC accompanied by concrete examples of a company in
accordance with the Corporate Governance structure that applies in Indonesia based on the legal
system written in the Law of the Republic of Indonesia No. 40 of 2007 concerning Limited Liability
Companies.

The duties of the directors in UURI No. 40 of 2007 is to run the management of the Company for the
benefit of the Company and in accordance with the aims and objectives of the Company. The duties of
the board of commissioners in UURI No. 40 of 2007 is to supervise management policies, the course of
management in general, both regarding the Company and to provide advice to the Board of Directors.
Examples of CGC as internal control and oversight systems, reporting mechanisms for alleged
irregularities, information technology governance, ethical behavior guidelines.

3. Give examples of cases of company violations of Corporate Social Responsibility (CSR) rules and
provide your analysis of these cases based on the concept of the Triple Bottom Line.

PT. Freeport Indonesia which provides medical services for the people of Papua through the provision of
modern clinics and hospitals in Banti and Timika. Apart from that, the company also provides
educational funding assistance for Papuan students and develops entrepreneurship programs such as in
Komoro and Timika. However, of the many CSR programs that have been carried out, PT Freeport is still
not experiencing good fortune. Imagine, PT. Freeport Indonesia, which has been operating since 1969,
until now has not been free from prolonged conflicts with local communities, both related to ulayat
land, customary violations, as well as social and economic inequalities that occur.
In my opinion, PT Freeport Indonesia should pay more attention to the economy of the people of Papua
there so that their company can develop a good image of the company. Preferably PT. Freeport
Indonesia pays more attention to their environment.