Skip to main content
Erschienen in: Social Indicators Research 3/2020

28.11.2019 | Original Research

A Data Envelopment Analysis-Based Methodology Adopting Assurance Region Approach for Measuring Corporate Social Performance

verfasst von: Tai-Hsi Wu, Hsiang-Lin Chih, Mei-Chen Lin, Yi Hua Wu

Erschienen in: Social Indicators Research | Ausgabe 3/2020

Einloggen

Aktivieren Sie unsere intelligente Suche um passende Fachinhalte oder Patente zu finden.

search-config
loading …

Abstract

Many research papers calculate corporate social performance (CSP) with the net score method, i.e., by subtracting the number of concerns from the number of strengths. Although widely adopted, this method implies, perhaps mistakenly, that each indicator is of equal importance and that however serious the social misconduct a firm may have engaged in, it can be completely offset by some positive social action. The method also implies that a given firm that has done both a lot of harm and a lot of good will have CSP similar to that of another firm that has done little harm and little good. In this study, however, we question the appropriateness of the net score method in terms of its ability to truly reflect CSP and truly identify the real effects of CSP on various characteristics. We therefore propose a data envelopment analysis-based methodology that adopts the assurance region approach for evaluating CSP, through which various CSP indicators are converted into a single composite measure of CSP. Our findings show that our proposed methodology consistently performs better than the net score method in evaluating CSP.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

  • über 102.000 Bücher
  • über 537 Zeitschriften

aus folgenden Fachgebieten:

  • Automobil + Motoren
  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Elektrotechnik + Elektronik
  • Energie + Nachhaltigkeit
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Maschinenbau + Werkstoffe
  • Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

  • über 67.000 Bücher
  • über 340 Zeitschriften

aus folgenden Fachgebieten:

  • Bauwesen + Immobilien
  • Business IT + Informatik
  • Finance + Banking
  • Management + Führung
  • Marketing + Vertrieb
  • Versicherung + Risiko




Jetzt Wissensvorsprung sichern!

Fußnoten
1
These papers are: Graves and Waddock (1994), Waddock and Graves (1997), Hillman and Keim (2001), David et al. (2007), El Ghoul et al. (2011), Hull and Rothenberg (2008), Choi and Wang (2009), Godfrey et al. (2009), Dahlmann and Brammer (2011), Wong et al. (2011), Barnett and Salomon (2012), Kim et al. (2012), Giuli and Kostovetsky (2014), Flammer (2015), Ioannou and Serafeim (2015), Tang et al. (2015) and Petrenko et al. (2016).
 
Literatur
Zurück zum Zitat Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review,32(3), 794–816. Barnett, M. L. (2007). Stakeholder influence capacity and the variability of financial returns to corporate social responsibility. Academy of Management Review,32(3), 794–816.
Zurück zum Zitat Barnett, M. L., & Salomon, R. M. (2012). Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal,33(11), 1304–1320. Barnett, M. L., & Salomon, R. M. (2012). Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal,33(11), 1304–1320.
Zurück zum Zitat Belu, C., & Manescu, C. (2013). Strategic corporate social responsibility and economic performance. Applied Economics,45(19), 2751–2764. Belu, C., & Manescu, C. (2013). Strategic corporate social responsibility and economic performance. Applied Economics,45(19), 2751–2764.
Zurück zum Zitat Brammer, S., & Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29(12), 1325–1343. Brammer, S., & Millington, A. (2008). Does it pay to be different? An analysis of the relationship between corporate social and financial performance. Strategic Management Journal, 29(12), 1325–1343.
Zurück zum Zitat Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European Journal of Operational Research,2, 429–444. Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European Journal of Operational Research,2, 429–444.
Zurück zum Zitat Charnes, A., Cooper, W. W., & Rhodes, E. (1979). Short communication: Measuring the efficiency of decision-making units. European Journal of Operational Research,3, 339. Charnes, A., Cooper, W. W., & Rhodes, E. (1979). Short communication: Measuring the efficiency of decision-making units. European Journal of Operational Research,3, 339.
Zurück zum Zitat Chen, C. M., & Delmas, M. A. (2011). Measuring corporate social performance: An efficiency perspective. Production and Operations Management,20(6), 789–804. Chen, C. M., & Delmas, M. A. (2011). Measuring corporate social performance: An efficiency perspective. Production and Operations Management,20(6), 789–804.
Zurück zum Zitat Choi, J., & Wang, H. (2009). Stakeholder relations and the persistence of corporate financial performance. Strategic Management Journal,30(8), 895–907. Choi, J., & Wang, H. (2009). Stakeholder relations and the persistence of corporate financial performance. Strategic Management Journal,30(8), 895–907.
Zurück zum Zitat Cook, W. D., & Zhu, J. (2008). CAR-DEA: Context-dependent assurance regions in DEA. Operations Research,56(1), 69–78. Cook, W. D., & Zhu, J. (2008). CAR-DEA: Context-dependent assurance regions in DEA. Operations Research,56(1), 69–78.
Zurück zum Zitat Dahlmann, F., & Brammer, S. (2011). Exploring and explaining patterns of adaptation and selection in corporate environmental strategy in the USA. Organization Studies,32(4), 527–553. Dahlmann, F., & Brammer, S. (2011). Exploring and explaining patterns of adaptation and selection in corporate environmental strategy in the USA. Organization Studies,32(4), 527–553.
Zurück zum Zitat David, P., Bloom, M., & Hillman, A. (2007). Investor activism, managerial responsiveness, and corporate social performance. Strategic Management Journal,28, 91–100. David, P., Bloom, M., & Hillman, A. (2007). Investor activism, managerial responsiveness, and corporate social performance. Strategic Management Journal,28, 91–100.
Zurück zum Zitat Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal,16(2), 312–322. Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal,16(2), 312–322.
Zurück zum Zitat Delmas, M., & Doctori-Blass, V. (2010). Measuring corporate environmental performance: The trade-offs of sustainability ratings. Business Strategy and the Environment,19(4), 245–260. Delmas, M., & Doctori-Blass, V. (2010). Measuring corporate environmental performance: The trade-offs of sustainability ratings. Business Strategy and the Environment,19(4), 245–260.
Zurück zum Zitat Dowell, G., Hart, S., & Yeung, B. (2000). Do corporate global environmental standards create or destroy market value? Management Science,46(8), 1059–1074. Dowell, G., Hart, S., & Yeung, B. (2000). Do corporate global environmental standards create or destroy market value? Management Science,46(8), 1059–1074.
Zurück zum Zitat Doyle, J. R., & Green, R. H. (1993). Data envelopment analysis and multiple criteria decision making. Omega,21, 713–715. Doyle, J. R., & Green, R. H. (1993). Data envelopment analysis and multiple criteria decision making. Omega,21, 713–715.
Zurück zum Zitat El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance,35(9), 2388–2406. El Ghoul, S., Guedhami, O., Kwok, C. C., & Mishra, D. R. (2011). Does corporate social responsibility affect the cost of capital? Journal of Banking & Finance,35(9), 2388–2406.
Zurück zum Zitat Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society,120(3), 253–290. Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society,120(3), 253–290.
Zurück zum Zitat Flammer, C. (2015). Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management Journal,36(10), 1469–1485. Flammer, C. (2015). Does product market competition foster corporate social responsibility? Evidence from trade liberalization. Strategic Management Journal,36(10), 1469–1485.
Zurück zum Zitat Giuli, A. D., & Kostovetsky, L. (2014). Are red or blue companies more likely to go green? Politics and corporate social responsibility. Journal of Financial Economics,111, 158–180. Giuli, A. D., & Kostovetsky, L. (2014). Are red or blue companies more likely to go green? Politics and corporate social responsibility. Journal of Financial Economics,111, 158–180.
Zurück zum Zitat Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal,30(4), 425–445. Godfrey, P. C., Merrill, C. B., & Hansen, J. M. (2009). The relationship between corporate social responsibility and shareholder value: An empirical test of the risk management hypothesis. Strategic Management Journal,30(4), 425–445.
Zurück zum Zitat Graves, S. B., & Waddock, S. A. (1994). Institutional owners and corporate social performance. Academy of Management Journal,37(4), 1034–1046. Graves, S. B., & Waddock, S. A. (1994). Institutional owners and corporate social performance. Academy of Management Journal,37(4), 1034–1046.
Zurück zum Zitat Griffin, J. J., & Mahon, J. F. (1997). The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research. Business and Society,26, 5–31. Griffin, J. J., & Mahon, J. F. (1997). The corporate social performance and corporate financial performance debate: Twenty-five years of incomparable research. Business and Society,26, 5–31.
Zurück zum Zitat Halkos, G. E., Tzeremes, N. G., & Kourtzidis, S. A. (2015). Weight assurance region in two-stage additive efficiency decomposition DEA model: An application to school data. Journal of the Operational Research Society,66, 696–704. Halkos, G. E., Tzeremes, N. G., & Kourtzidis, S. A. (2015). Weight assurance region in two-stage additive efficiency decomposition DEA model: An application to school data. Journal of the Operational Research Society,66, 696–704.
Zurück zum Zitat Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal,22(2), 125–139. Hillman, A. J., & Keim, G. D. (2001). Shareholder value, stakeholder management, and social issues: What’s the bottom line? Strategic Management Journal,22(2), 125–139.
Zurück zum Zitat Hull, C. E., & Rothenberg, S. (2008). Firm performance: The interactions of corporate social performance with innovation and industry differentiation. Strategic Management Journal,29(7), 781–789. Hull, C. E., & Rothenberg, S. (2008). Firm performance: The interactions of corporate social performance with innovation and industry differentiation. Strategic Management Journal,29(7), 781–789.
Zurück zum Zitat Ingley, C., Mueller, J., & Cocks, G. (2011). The financial crisis, investor activists and corporate strategy: Will this mean shareholders in the boardroom? Journal of Management and Governance,15, 557–587. Ingley, C., Mueller, J., & Cocks, G. (2011). The financial crisis, investor activists and corporate strategy: Will this mean shareholders in the boardroom? Journal of Management and Governance,15, 557–587.
Zurück zum Zitat Ioannou, I., & Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts’ perceptions and shifting institutional logics. Strategic Management Journal,36(7), 1053–1081. Ioannou, I., & Serafeim, G. (2015). The impact of corporate social responsibility on investment recommendations: Analysts’ perceptions and shifting institutional logics. Strategic Management Journal,36(7), 1053–1081.
Zurück zum Zitat Isaksson, R., & Steimle, U. (2009). What does GRI-reporting tell us about corporate sustainability? The TQM Journal,21(2), 168–181. Isaksson, R., & Steimle, U. (2009). What does GRI-reporting tell us about corporate sustainability? The TQM Journal,21(2), 168–181.
Zurück zum Zitat Khouja, M. (1995). The use of data envelopment analysis for technology selection. Computers & Industrial Engineering,28, 128–132. Khouja, M. (1995). The use of data envelopment analysis for technology selection. Computers & Industrial Engineering,28, 128–132.
Zurück zum Zitat Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The Accounting Review,87(3), 761–796. Kim, Y., Park, M. S., & Wier, B. (2012). Is earnings quality associated with corporate social responsibility? The Accounting Review,87(3), 761–796.
Zurück zum Zitat Lai, P. L., Potter, A., Beynon, M., & Beresford, A. (2015). Evaluating the efficiency performance of airports using an integrated AHP/DEA-AR technique. Transport Policy,42, 75–85. Lai, P. L., Potter, A., Beynon, M., & Beresford, A. (2015). Evaluating the efficiency performance of airports using an integrated AHP/DEA-AR technique. Transport Policy,42, 75–85.
Zurück zum Zitat Lee, K.-H., & Saen, R. F. (2012). Measuring corporate sustainability management: A data envelopment analysis approach. International Journal of Production Economics,140, 219–226. Lee, K.-H., & Saen, R. F. (2012). Measuring corporate sustainability management: A data envelopment analysis approach. International Journal of Production Economics,140, 219–226.
Zurück zum Zitat Mattingly, J. E., & Berman, S. L. (2006). Measurement of corporate social action discovering taxonomy in the Kinder Lydenburg Domini ratings data. Business and Society,45(1), 20–46. Mattingly, J. E., & Berman, S. L. (2006). Measurement of corporate social action discovering taxonomy in the Kinder Lydenburg Domini ratings data. Business and Society,45(1), 20–46.
Zurück zum Zitat McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal,31(4), 854–872. McGuire, J. B., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal,31(4), 854–872.
Zurück zum Zitat McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal,21(5), 603–609. McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal,21(5), 603–609.
Zurück zum Zitat McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review,26, 117–127. McWilliams, A., & Siegel, D. (2001). Corporate social responsibility: A theory of the firm perspective. Academy of Management Review,26, 117–127.
Zurück zum Zitat McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies,43(1), 1–18. McWilliams, A., Siegel, D. S., & Wright, P. M. (2006). Corporate social responsibility: Strategic implications. Journal of Management Studies,43(1), 1–18.
Zurück zum Zitat Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies,24(3), 403–441. Orlitzky, M., Schmidt, F. L., & Rynes, S. L. (2003). Corporate social and financial performance: A meta-analysis. Organization Studies,24(3), 403–441.
Zurück zum Zitat Petrenko, C. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal,37(2), 262–279. Petrenko, C. V., Aime, F., Ridge, J., & Hill, A. (2016). Corporate social responsibility or CEO narcissism? CSR motivations and organizational performance. Strategic Management Journal,37(2), 262–279.
Zurück zum Zitat Richardson, A. J., & Welker, M. (2001). Social disclosure, financial disclosure and the cost of equity capital. Accounting, Organizations and Society,26(7), 597–616. Richardson, A. J., & Welker, M. (2001). Social disclosure, financial disclosure and the cost of equity capital. Accounting, Organizations and Society,26(7), 597–616.
Zurück zum Zitat Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal,23, 1077–1093. Roberts, P. W., & Dowling, G. R. (2002). Corporate reputation and sustained superior financial performance. Strategic Management Journal,23, 1077–1093.
Zurück zum Zitat Ruf, B. M., Muralidhar, K., Brown, R. M., Janney, J. J., & Paul, K. (2001). An empirical investigation of the relationship between change in corporate social performance and financial performance: A stakeholder theory perspective. Journal of Business Ethics,32(2), 143–156. Ruf, B. M., Muralidhar, K., Brown, R. M., Janney, J. J., & Paul, K. (2001). An empirical investigation of the relationship between change in corporate social performance and financial performance: A stakeholder theory perspective. Journal of Business Ethics,32(2), 143–156.
Zurück zum Zitat Ruf, B. M., Muralidhar, K., & Paul, K. (1998). The development of a systematic, aggregate measure of corporate social performance. Journal of Management,24, 119–133. Ruf, B. M., Muralidhar, K., & Paul, K. (1998). The development of a systematic, aggregate measure of corporate social performance. Journal of Management,24, 119–133.
Zurück zum Zitat Sarkis, J. (2000). A comparative analysis of DEA as a discrete alternative multiple criteria decision tool. European Journal of Operational Research,123, 543–557. Sarkis, J. (2000). A comparative analysis of DEA as a discrete alternative multiple criteria decision tool. European Journal of Operational Research,123, 543–557.
Zurück zum Zitat Stewart, T. J. (1996). Relationship between data envelopment analysis and multicriteria decision analysis. Journal of the Operational Research Society,47, 654–665. Stewart, T. J. (1996). Relationship between data envelopment analysis and multicriteria decision analysis. Journal of the Operational Research Society,47, 654–665.
Zurück zum Zitat Strike, V. M., Gao, P., & Pratima, B. (2006). Being good while being bad: Social responsibility and the international diversification of US firms. Journal of International Business Studies,37(6), 850–862. Strike, V. M., Gao, P., & Pratima, B. (2006). Being good while being bad: Social responsibility and the international diversification of US firms. Journal of International Business Studies,37(6), 850–862.
Zurück zum Zitat SustainAbilty. (2010). Rate the raters (phase two): Taking inventory of the ratings universe. October 2010. SustainAbilty. (2010). Rate the raters (phase two): Taking inventory of the ratings universe. October 2010.
Zurück zum Zitat SustainAbilty. (2013). Rate the raters (phase five): The 2013 rating survey: Polling the experts. A GlobeScan/Sustainability Survey. SustainAbilty. (2013). Rate the raters (phase five): The 2013 rating survey: Polling the experts. A GlobeScan/Sustainability Survey.
Zurück zum Zitat Tang, Y., Qian, C., Chen, G., & Shen, R. (2015). How CEO hubris affects corporate social (ir)responsibility. Strategic Management Journal,36(9), 1338–1357. Tang, Y., Qian, C., Chen, G., & Shen, R. (2015). How CEO hubris affects corporate social (ir)responsibility. Strategic Management Journal,36(9), 1338–1357.
Zurück zum Zitat Thompson, R. G., Dharmapala, P. S., Gatewood, E. J., Macy, S., & Thrall, R. M. (1996). DEA/assurance region SBDC efficiency and unique projections. Operations Research,44(4), 533–542. Thompson, R. G., Dharmapala, P. S., Gatewood, E. J., Macy, S., & Thrall, R. M. (1996). DEA/assurance region SBDC efficiency and unique projections. Operations Research,44(4), 533–542.
Zurück zum Zitat Thompson, R. G., Lee, L., & Thrall, R. M. (1992). DEA/AR-efficiency of U.S. independent oil/gas. Computers & Operations Research,19(5), 377–391. Thompson, R. G., Lee, L., & Thrall, R. M. (1992). DEA/AR-efficiency of U.S. independent oil/gas. Computers & Operations Research,19(5), 377–391.
Zurück zum Zitat Thompson, R. G., Singleton, F. D., Jr., Thrall, R. M., & Smith, B. A. (1986). Comparative site evaluation for locating a high-energy physics lab in Texas. Interfaces,16, 35–49. Thompson, R. G., Singleton, F. D., Jr., Thrall, R. M., & Smith, B. A. (1986). Comparative site evaluation for locating a high-energy physics lab in Texas. Interfaces,16, 35–49.
Zurück zum Zitat Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. The Academy of Management Journal,40(3), 658–672. Turban, D. B., & Greening, D. W. (1997). Corporate social performance and organizational attractiveness to prospective employees. The Academy of Management Journal,40(3), 658–672.
Zurück zum Zitat Waddock, S. (2003). Stakeholder performance implications of corporate responsibility. International Journal of Business Performance Management,5, 114–124. Waddock, S. (2003). Stakeholder performance implications of corporate responsibility. International Journal of Business Performance Management,5, 114–124.
Zurück zum Zitat Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal,18(4), 303–319. Waddock, S. A., & Graves, S. B. (1997). The corporate social performance-financial performance link. Strategic Management Journal,18(4), 303–319.
Zurück zum Zitat Wolfe, R., & Aupperle, K. (1991). Introduction to corporate social performance: Methods for evaluating an elusive construct. In J. E. Post (Ed.), Research in corporate social performance and policy (Vol. 12, pp. 265–268). Greenwich, CT: JAI Press. Wolfe, R., & Aupperle, K. (1991). Introduction to corporate social performance: Methods for evaluating an elusive construct. In J. E. Post (Ed.), Research in corporate social performance and policy (Vol. 12, pp. 265–268). Greenwich, CT: JAI Press.
Zurück zum Zitat Wong, E. M., Ormiston, M. E., & Tetlock, P. E. (2011). The effects of top management team integrative complexity and decentralized decision making on corporate social performance. Academy of Management Journal,54, 1207–1228. Wong, E. M., Ormiston, M. E., & Tetlock, P. E. (2011). The effects of top management team integrative complexity and decentralized decision making on corporate social performance. Academy of Management Journal,54, 1207–1228.
Zurück zum Zitat Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review,16, 691–718. Wood, D. J. (1991). Corporate social performance revisited. Academy of Management Review,16, 691–718.
Metadaten
Titel
A Data Envelopment Analysis-Based Methodology Adopting Assurance Region Approach for Measuring Corporate Social Performance
verfasst von
Tai-Hsi Wu
Hsiang-Lin Chih
Mei-Chen Lin
Yi Hua Wu
Publikationsdatum
28.11.2019
Verlag
Springer Netherlands
Erschienen in
Social Indicators Research / Ausgabe 3/2020
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI
https://doi.org/10.1007/s11205-019-02228-3

Weitere Artikel der Ausgabe 3/2020

Social Indicators Research 3/2020 Zur Ausgabe