Acta Univ. Agric. Silvic. Mendelianae Brun. 2012, 60(4), 195-206 | DOI: 10.11118/actaun201260040195

Construction of the economic indicators of performance in relation to environmental, social and corporate governance (ESG) factors

Alena Kocmanová, Marie Dočekalová
Ústav ekonomiky, Vysoké učení technické v Brně, Fakulta podnikatelská, Kolejní 4, 612 00 Brno, Česká republika

The article is focused on economic performance in relation to environmental, social and corporate governance indicators. Indicators are increasingly used by investors to understand the processes in company, focusing on the key factors. Many international institutions engaged in the development of environmental, social and corporate governance indicators and they are in accordance with financial institutions trying to find a common language in defining the environmental, social and corporate governance indicators affecting their common objectives to achieve sustainable, long-term growth and prosperity. The aim of the article is searching for the way of measuring economic performance of the company in relation to environmental, social and corporate governance indicators. On the basis of analysis of the environmental, social and corporate governance performance indicators of international organizations has been carried out empirical research of economic indicators for the companies in the manufacturing sector. The expected result of the research is the design of the economic indicators of performance in relation to environmental, social and corporate governance indicators. These proposed economic performance indicators should enable companies to measure the economic performance and added value towards sustainability.

Keywords: performance, key performance indicators, ESG performance, integrated reporting, empirical research, Person Chi-Sguare, T-test, Economic scales of the performance, Economic indicators, Economic Value Added
Grants and funding:

This paper is supported by the Czech Science Foundation. Name of the Project: Construction of Methods for Multifactor Assessment of Company Complex Performance in Selected Sectors. Registration No. P403/11/2085.

Received: April 30, 2012; Published: August 7, 2013  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Kocmanová, A., & Dočekalová, M. (2012). Construction of the economic indicators of performance in relation to environmental, social and corporate governance (ESG) factors. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 60(4), 195-206. doi: 10.11118/actaun201260040195
Share...
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. BARNETT, M. L., SALOMON, R. M. 2006: Beyond Ditochomy: The Curvilinear Relationship Between Social Responsibility And Financial Performance, Strategic Management Journal No 27, pp. 1101-1122. ISSN 1097-0266. DOI: 10.1002/smj.557 Go to original source...
    2. BARTES, F. 2010: Competitive intelligence - tool obtaining specific basic for strategic decision making TOP management firm. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2010, LVIII, No. 6, pp. 43-50. ISSN 1211-8516. Go to original source...
    3. CADBURY, A. 1992: The Committee on the Financial Aspects of Corporate Governance and Gee and Co. Ltd. Report. 1992, p. 61.
    4. CA, 2010 : Environmental, Social and Governance (ESG) Issues in Institutional Investor Decision Making: http://www.cica.ca/publications/list-ofpublications/manual/item41881.pdf.
    5. CFA Institute, 2008. Environmental, Social, and Governance Factors at Listed Companies: A Manual for Investors. Available from internet:
    6. Czech Statistical Office, 2012: http://vdb.czso.cz/vdbvo/maklist.jsp?kapitola_id=33&expand=1
    7. DEMB, A., NEUBAUER, F. F., 1992: The Corporate Board-Confronting The Paradoxes. New York, Oxford University Press 1992. Go to original source...
    8. DVFA, 2008: KPIs for ESG. Key Performance Indicators for Environmental, Social and Governance Issues. A Guideline for Corporates on How to Report on ESG and a Benchmark for Investment Professionals on How to Integrate ESG into Financial Analysis, DVFA Financial Papers No. 8/08_e,DVFA, Dreieich.
    9. FEE, 2011: Environmental, Social and Governance (ESG) indicators in annual reports - An introduction to current frameworks
    10. http://www.fee.be/publications/default.asp?library_ref=4&content_ref=1392.
    11. G3.1 Guidelines, 2011: G3.1 Guidelines, Available: http://www.globalreporting.org/ReportingFramework/G31Guidelines/.
    12. G4 Development, 2012: Available: https://www.globalreporting.org/resourcelibrary/G4-PCP1-Full-Report.pdf.
    13. HORVÁTHOVÁ, E., 2010: Does environmental performance affect financial performance? A meta-analysis. Ecological Economics, 70 (1), 52-58. ISSN 0921-8009. DOI: 10.1016/j.ecolecon.2010.04.004 Go to original source...
    14. HŘEBÍČEK, J., SOUKOPOVÁ, J., 2008: Voluntary Company Assessment Report on the linkages between environment, economy and society (in Czech). Praha: Ministry of Environment of the Czech Republic, 61. ISBN 978-80-7212-495-4.
    15. HŘEBÍČEK, J., SOUKOPOVÁ, J., ŠTENCL, M., TRENZ, O., 2011: Corporate Key Performance Indicators for Environmental Management and Reporting. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, 2: 99-108, ISSN 1211-8516. Go to original source...
    16. HŘEBÍČEK, J., SOUKOPOVÁ, J., ŠTENCL, M., TRENZ, O., 2011a: Integration of Economic, Environmental, Social and Corporate Governance Performance and Reporting in Enterprises. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis 59, 7: 157-177, ISSN 1211-8516. Go to original source...
    17. CHVÁTALOVÁ, Z., KOCMANOVÁ, A., DOČEKALOVÁ, M., 2011: Corporate Sustainability Reporting and Measuring Corporate Performance, In: Environmental Software Systems. Frameworks of eEnvironment. 9th IFIP WG 5.11 International Symposium. ISESS 2011. Heidelberg: Springer, 398-406, ISBN 978-3-642-22284-9. Go to original source...
    18. IFAC, 2012: Investor demand for encironmental, social and governance disclosures: http://www.ifac.org/publications-resources/investor-demand-environmental-social-and-governance-disclosures.
    19. IIRC, 2012: The International Integrated Reporting Council website. Available: http://www.theiirc.org/.
    20. KLÍROVÁ, J., 2001: Corporate Governance-správa a řízení obchodních společností. Praha, ManagementPress, 2001. 119 s. ISBN 80-7175-140-5.
    21. KAVALÍŘ, P., 2005: Hodnocení corporate governance v České republice. Centrum ekonomických studií VŠEM, Working Paper CES VŠEM No. 14/2005. ISSN 1801-2728.
    22. KLÍROVÁ, J., KAVALÍŘ, P., 2004: Demand for Education in Corporate Governance on Increase. Acta Oeconomica Pragensia, No. 5, 13-21. ISSN 0572-3043.
    23. KOCMANOVÁ, A., DOČEKALOVÁ, M., 2011: Environmental, social and economic performance and sustainability in SMEs. In: Liberec Economic Forum 2011. 1. Technical University of Liberec, Czech Republic: Technical University of Liberec, Czech Republic. p. 242-252. ISBN 978-80-7372-755-0.
    24. KOCMANOVÁ, A., DOČEKALOVÁ, M., 2011: Corporate sustainabilita: Environmental, Social and Corporate performance. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 7, 203-209. ISSN 1211-8516. Go to original source...
    25. KOCMANOVÁ, A., DOČEKALOVÁ, M., NĚMEČEK, P., ŠIMBEROVÁ, I., 2011: Sustainability: Environmental, Social and Corporate Governance Performance in Czech SMEs. In: The 15th World Multi-Conference on Systemics, Cybernetics and Informatics. 2011. IFSR, Orlando, USA: WMSCI 2011,Orlando, USA, 2011. p. 94-99. ISBN 978-1-936338-42-9.
    26. LÓPEZ-GAMERO, M. D., MOLINA-AZORÍN, J. F., CLAVER-CORTÉS, E., 2009: The whole relationship between environmental variables and firm performance: competitive advantage and firm resources as mediator variables. Journal of Environmental Management 2009(10): 3110-3121. ISSN 0301-4797. DOI: 10.1016/j.jenvman.2009.05.007 Go to original source...
    27. OECD Guidelines, 2010: OECD Guidelines for Multinational Enterprises. Available http://www.oecd.org/document/28/0,3746,en_2649_34889_2397532_1_1_1_1,00.html.
    28. OECD, Principles of Corporate Governance. Available at: http://www.oecd.org/dataoecd/32/18/31557724.pdf.
    29. Sustainability Reporting Framework, 2012: website on Globalreporting. Available: https://www.globalreporting.org/reporting/reporting-framework-overview/Pages/default.aspx.
    30. UN Global Compact, 2010: United Nations Global Compact. Available: http://www.unglobalcompact.org/.
    31. UNEP FI, 2010: United Nations Environment Programme Finance Initiative. Available: http://www.unepfi.org/about/index.html.

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content