Copyright © 2019 Authors. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. International Journal of Engineering & Technology, 8 (1.9) (2019) 519-522 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research paper Economy and Social Commitment-Based Investment and Role of Board of Directors (BOD) toward Corporate Value Indriani, E 1* , Anton, R. P 2 1 STIE AUB, Surakarta, Jl. Mr. Sartono 46 Surakarta, Indonesia, ettyaub@yahoo.co.id Mobile phone: +6281548326699 2 STMIK AUB, Surakarta Jl. MW. Maramis 29 Surakarta, Indonesia, anton18@stmik-aub.ac.id Mobile phone: +62816676378 *Corresponding author E-mail: ettyaub@yahoo.co.id Abstract Economy and social commitment-based investment is a corporate investment policy strategy which can generate profits that are able to improve corporate values and meet the interests of stakeholders. Corporate social responsibility (CSR) activity is a high-cost program, but some companies consider that it does not give significant results to their corporate values. This study aims at bridging the gap be- tween the study and practice of the CSR. It was conducted at go public companies in Indonesia from 2012-2014. The result of this study shows that the intensive role of the Board of Directors (BOD) strengthened the effect support of economy and social commitment-based investment to enhance the corporate values. Keywords: Economy and social commitment-based investment, role of the BOD 1. Introduction Corporate Social Responsibility (CSR) is a form of the company's commitment to build, together with related stakeholders, a better quality of life, especially of community where it operates. The CSR has a very important role in encouraging more corporate social re- sponsibility to create a balance between economic, social, and environmental developments. In developing countries, the CSR gets a significant attention from the government, academia, and civil society. The government as the regulator confirms that the company's commitment to CSR is reflected in the regulation on the company's obligation to implement the CSR as stated in Article 74 of Law Number: 40 of 2007 regarding Limited Liability Company. In fact, not all companies carry out their CSR obligations. The companies assume the CSR as a waste because the company's budget is absorbed for unprofitable activities. Today the CSR practices are carried out as a public relation activity that builds a corporate image and that prioritizes programs viewable by public rather than by companies, which basically have the same position in the CSR stakehold- ers. The companies prefer donating the CSR funds to an existing program to creating their own initiatives (Bhattacharyya & Nag, 2012). Socially-oriented investment is the use of company funds for social and environmental interests as a form of the CSR to the stakeholders. The use of funds for the CSR gains indirect benefits. The CSR generate profits with regard to the benefits of creating goodwill of stake- holders (Ullmann, 1985; Jones, 1995; Waddock and Graves, 1997). The theoretical bases and the instrumental theories that explain this perspective are Stakeholder Theory (Jones, 1995) and Good Management Theory (Waddock and Graves, 1997; Orlitzky et al. 2003). The companies that implement the CSR can avoid the costs of fines or claims on environmental issues proposed by community (Waddock and Graves, 1997). A gap of the studies on the CSR is shown by their results, which claim that the CSR brings about negative impacts on the corporate val- ues. The cost on the bottom line is high and will always reduce the profits and wealth of the shareholders (Preston and Bannon 1997). Investment made by companies in India in the CSR program affects a financial performance. The result of the study shows that the CSR investment return is undetectable, but it is found not later than one year after it is created, and the investment in environmental initiatives is proved to have negative impacts on performance (Bhattacharyya & Nag, 2012). Based on the gap between the studies and the phenom- ena mentioned above, the objectives of this study are: (1) to assess the economy and social commitment-based investment toward the corporate values; (2) to examine the role of the BOD in strengthening the economy and social commitment-based investment strategies to enhance the corporate values. 2. Material and Method The economy and social commitment-based investment is a corporate investment strategy which integrates simultaneously-oriented eco- nomic and social investments. The aim of this strategy is to combine the advantages of an investment using a motive of getting profits as