**1. Introduction**

Every company in the business process will interact with the social environment. As a result of this interaction requires reciprocity between the company and the social environment that has implications for the emergence of social impacts on the company's operations on the environment around the company. As long as

#### *Corporate Social Responsibility*

the company uses existing human and community resources, the company has the responsibility to return it as profit to the community [1].

A good company not only seeks economic benefits but also has a concern for environmental sustainability and public welfare. So, now it is known as a company whose products are environmentally friendly, which is not polluting the natural environment by the products it produced. Then a concept called corporate social responsibility (CSR).

In addition, consumers are now thinking rationally about buying products and services that are environmentally friendly because they have felt a very terrible impact due to environmental damage, namely, ecosystems and irregular seasonal cycles. Because the disturbed ecosystem, which is one of these cycles, has been damaged, there are undesirable environmental impacts such as floods, landslides, river and groundwater and air pollution. Damaged natural resources require a lot of costs that must be sacrificed to return it to its original state.

With the change in consumer behavior mentioned above, manufacturing companies are oriented to consumer needs, that is, they expect products produced by producers to have a low environmental impact. So the manufacturer must inform that the products produced are environmentally friendly and do not have a global effect on the environment both around the factory and on the environment outside the factory, with the use of these products by consumers.

To overcome the above matter, it is not only handled by manufacturers and consumers but the government has also participated in issuing regulations and very strict rules so that the natural damage does not become severe.

The relationship between the four entities related to CSR is shown in **Figure 1**.

The four entities have an interest in CSR, therefore each has a mutually supportive role so that CSR can work well and the natural environment is maintained.

Government makes rules and legal products that must be obeyed by producers, for example, in the form of environmental impact assessments and regulations related to environmentally friendly production processes.

Producers make environmentally friendly products that do not pollute the land, water, and air and they obey the rules issued by the government.

The public observes the impact of deviations that occur because producers who do not obey laws and regulations and become partners of these producers in improving living standards and having a healthy environment.

Consumers will buy products produced by producers if they have little influence on environmental pollution and become partners with producers. The impact for

**Figure 1.** *Entities related to CSR.*

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

the company is the level of sales increases and profits increases so that the company's value increases from the investor's perspective.

Based on the description above, the researcher wants to find out whether the implementation of corporate social responsibility will increase the value of companies listed on the Sustainable and Responsible Investment (SRI) Kehati Index Indonesia.
