**6. Sri Kehati Index**

On June 8, 2009, the KEHATI Foundation in collaboration with PT Indonesia Stock Exchange launched the Sustainable and Responsible Investment (SRI) - KEHATI (Indonesian Biodiversity Foundation) launched an index that refers to the procedures of the Sustainable and Responsible Investment (SRI) under the name SRI KEHATI Index.

The base year used as the index starting year, with a base of 100, was launched in December 30, 2006, and was published by the IDX as the SRI KEHATI Index, which stood at 116,946 [15]. It is hoped that with the launch of the SRI KEHATI index, the public will be aware of the existence of an index that illustrates companies that are economically profitable while paying attention to environmental sustainability.

The purpose of the establishment of this index is to provide information to the public at large about the characteristics of selected companies in the SRI KEHATI Index, which is considered to have various forms of consideration in its efforts relating to environmental concerns, corporate governance, community involvement, human resources, human rights, and business conduct with business ethics that is accepted at the international level.

The KEHATI Foundation establishes 25 selected companies that are considered to be able to meet the criteria in the SRI KEHATI Index so that they can become guidelines for investors. The existence of selected companies will be evaluated every two periods in a year, namely, in April and October, and after being chosen, the names of 25 company constituents will be published by the IDX, which can be seen at www.idx.co.id [16].

The mechanism for selecting companies to enter the SRI KEHATI Index is carried out through two stages, namely, the first stage, which is the initial screening of negative selection and the financial aspect, and then the second stage, which is the fundamental aspect. The first stage of this initial screening is to ensure that the companies that are assessed as fulfilling the assessment requirements satisfy the selection stage, as shown in **Figure 2**.

The assessment is done through a review of secondary data, by filling out questionnaires by companies that have gone through the selection stages above, and from other relevant data. From the results of the review, 25 (twenty five) companies with the highest value were included in the SRI KEHATI Index. It is one of the indices that are indicators of stock price movements on the Indonesia Stock Exchange (BEI), and it can be a benchmark for investors or investment managers in determining which public companies have good performance in carrying out their business

**Figure 2.** *Selection stage to enter SRI KEHATI Index.*

*Implementation of Corporate Social Responsibility to Increase the Value of Companies Listed… DOI: http://dx.doi.org/10.5772/intechopen.93482*

**Figure 3.**

*Growth of the SRI KEHATI Index. Source: https://www.srikehati.or.id.*

in terms of financial, social, and environmental management in a sustainable manner [15].

The SRI KEHATI index is the first green investment index in ASEAN and the second in Asia based on Exchange and Sustainable Investment data (www.worldexchange.or) [17]. This index is included in the category of Socially Responsible Investing (SRI) or ethical investing, which is an investment strategy that considers both financial and social benefits that bring change. The growth of the SRI Kehati Index can be seen in **Figure 3**.

Several types of indexes included in the SRI index category include.

So, the SRI-Kehati Index is an index that measures the stock performance of 25 companies that have good performance in encouraging sustainable businesses as well as having an awareness of the environment, social, and good corporate governance or the so-called Sustainable and Responsible Investment (SRI). In addition, there are other indices such as the LQ45 index and the Composite Stock Price Index (IHSG) and JCI (Jakarta Composite Index). This indicates that there is a positive response from investors who are willing to pay a premium price from the shares of listed companies with the category, Sustainable and Responsible. There are six indicators used as a basis for assessment, including: (1) environmental awareness, (2) community development, (3) good governance, (4) business behavior, (5) labor practices, and (6) human rights. As of April 2017, there were 25 listed companies as shown in **Table 1**.


*Source: https://www.kehati.or.id, accessed date: September 14, 2017 [15].*

**Table 1.** *Indexes in SRI.*
