A Novel Approach in Corporate Social Responsibility Performance Measurement

Maria Belesioti – University of the Aegean, 41 Kountouriotou Str. 82100, Chios, Greece

Michail Glykas – University of the Aegean, 41 Kountouriotou Str. 82100, Chios, Greece

Abstract

Corporate Social Responsibility Performance (CSR) Measure­ment is as essential as performing CSR. Measurement of Corporate Social Performance is two-fold: firstly, can assist stakeholders in understanding the difference between short-term financial metrics and building valuable long-term relationships and assets leading to long-term corporate value. Secondly, it offers society, employees, and customers the ability to judge a corporation’s social behaviour and ethics and reward it accordingly. So, the exact contribution of CSR to a company and its stakeholders should be evaluated and assessed by tangible and measurable results. Since there is no standardised method or predefined criteria for CSR assessment, litera­ture has tried to define the influencing factors of corporate social perfor­mance and to describe the techniques and methodologies of CSR assess­ment. However, due to its “soft nature”, the pure social part of the term is difficult to measure. Corporations use Global Reporting Initiative (GRI) Standards and Key Performance Indicators (KPIs) to measure their perfor­mance. However, these measures are not sufficient since they cannot af­fect corporate strategic goals. In the present paper, a CSR performance measurement framework is presented, targeting to assist organisations in measuring the effectiveness of their CSR initiatives. The key factors affect­ing corporate performance are identified, and a literature review of the concept is performed.

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