Corporate Accountability: Criminal Liability of Companies for Sustainable Environmental Damage

Abstract

Environmental degradation caused by corporate activity has become one of the most persistent legal challenges confronting both developing and developed jurisdictions. This article examines corporate criminal liability as an instrument of environmental accountability, situating it within the broader discourse on sustainable development and ecological justice. Employing a normative juridical method, the study analyzes statutory frameworks, judicial doctrines, and comparative practices governing the criminal responsibility of corporations for environmental harm, with particular attention to Indonesia's evolving legal architecture under Law Number 32 of 2009 on Environmental Protection and Management and the newly enacted National Criminal Code, Law Number 1 of 2023. The article identifies persistent normative gaps in attribution theory, sanction design, and enforcement capacity that weaken deterrence, and argues for a restoration-oriented model of corporate criminal liability that integrates strict liability principles, ecological justice, and compliance-based sanctions. The novelty of this study lies in proposing an integrated accountability framework combining criminal deterrence with restorative environmental remedies, moving beyond the conventional punitive paradigm. The findings contribute to theoretical and practical discourse on strengthening corporate environmental accountability as a foundation for sustainable development, offering doctrinal and policy recommendations for lawmakers, prosecutors, and corporate compliance practitioners