It legitimately aggregates across scales and addresses consistency in judgments from multiple participants. It also formalizes the selection process, reduces time commitments, creates a process-oriented selection method and results in better selection of CSR indicators [ 22 ].
Furthermore, it can be replicated in similar situations and ultimately reduces costs and effort related to the selection process and to the occurrence of selection errors post-selection. Very few studies have attempted to formulate a framework of analysis that systematically documents or prioritizes CSR practices.
This research set out to construct a comprehensive CSR index that aimed to understand and analyze CSR practices within Saudi corporations. Most previous CSR literature fell short in addressing this issue. Given the shortcomings of the existing indices, the study proposed and constructed a CSR index based on the AHP methodology.
Expert judgments were collected through a survey of people from the corporate sector as well as the wider community. The proposed index has been verified by implementing it in the same business environment. Local corporations in the service sector were investigated and their performance was evaluated and finally they were rated by the proposed index. Extant CSR studies are usually one-dimensional, tending to focus on environmental and community issues and using secondary data sources, both of which are considered shortcomings.
This research overcomes these shortcomings by collecting original data and by using the AHP model that extends beyond the restrictions of previous approaches. The findings demonstrate that Saudi companies do not view CSR mainly in terms of philanthropy given that employment and production efficiency emerge as the most highly ranked corporate priorities. This confirms the view that Saudi businesses are moving towards adopting CSR practices as part of their corporate strategy.
This further highlights the need for a robust CSR index for the Saudi corporate sector. For future research the proposed model can be easily replicated or modified in similar situations not only inside Saudi Arabia but in other countries around the world.
Furthermore, the findings can be used to facilitate CSR best practices across borders. It recognized companies for their outstanding economic, environmental and social performances. The eight new indices target investors who measure performance against standard benchmarks, but want to add sustainable companies to their portfolios.
In , Dow Jones launched the Dow Jones Sustainability Emerging Markets, the first index to measure sustainability performance from emerging markets. It consists of global firms dedicated to a sustainable environment, corporate governance, and international human rights.
FTSE4GOOD provides a tool for responsible investors to identify and invest in companies that meet globally recognized corporate responsibility standards, and it contributes to the development of responsible business practices around the world.
The index concentrates on environmental and human rights criteria in addition to supply chain labor standards, countering bribery and climate change criteria. In , the UK-based Social Stock Exchange SSE was launched, and in , companies that used more than MWh per year were to start reporting on all emissions related to energy use [ 27 ]. It is used by a growing community of responsible investors to define sustainable investment universes, to benchmark their investment performances and to create index-linked products.
It consists of six main criteria: environment, community involvement, human rights, business behavior, human resources and corporate governance. The Morning Japan K.
Morningstar Japan selects the top publicly listed companies with respect to their CSR activities and calculates an index based on stock prices. It is based on five criteria, namely, governance, accountability, markets, working environment, and social contributions. It tracks the performance of the constituent companies of the BSE index and their commitment to greenhouse gas emissions reduction.
BSE also launched its green index. The index will also examine the performances of companies regarding their mandatory CSR spent as per the new Companies Act as one of the important and objective criteria [ 28 ]. The purpose of the index is to raise the profile of those companies that perform well with respect to their environmental, social and corporate governance responsibility when compared to their market peers registered on the Egyptian Stock market [ 29 ].
It aims to promote good CSR practices within the Saudi corporate sector. Participation in the index is voluntary for companies. Following North America and the U.
K, in the corporation act in Australia required the disclosure of violations of environmental legislation in listed companies. In , Australia introduced its new ethical disclosure requirements under the Financial Services Reform Act FSRA annual reports whereby companies listed on the Australian Stock Exchange ASX must disclose whether they have developed a code of conduct on environmental risks and controls [ 31 ].
In Germany, Deutsche Borse established the DAX Global Alternative Energy Index, which includes international companies whose revenues are based on technology and services designed to promote and generate alternative energy sources in an effort to highlight growth trends towards alternative energy. The Warsaw Stock Exchange launched the first stock index of responsible companies in Central and Eastern Europe by the end of Three years later, the Warsaw Stock Exchange launched the RESPECT index, which lists companies with a high reporting quality and an advanced level of investor relations or information governance.
The Shanghai Stock Exchange launched a new environmental protection industry index in September In the KEJI index was the first comprehensive evaluation scheme for corporate business ethics and social responsibility developed and implemented in Korea. One of the distinctive features of the KEJI index is that it is a product of an independent rating service.
It focuses on the evaluation of multidimensional corporate social performances and yields a score on seven individual categories of CSR: soundness, fairness, contribution to society, consumer protection, environmental protection, employee satisfaction, and contribution to economy [ 32 ]. It tracks corporations that has sustainable business practices.
Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution 3. Help us write another book on this subject and reach those readers. Login to your personal dashboard for more detailed statistics on your publications. I would argue just based on experience, and download this report []. They want to do the research to understand the needs assessments and how they can use their core competencies to give back, rather than it just being this vanity level , superficial type of report saying, checking the box, these are the things that we're doing.
The one place for reporting, I would say, is more so in the ESG world , environmental, social governance, because companies are now using that [] for investors and potential stakeholders for assessing risk. And so, this is a totally different perspective on reporting and that's where I think there really is a place.
So, you can report out on the actions that your people are doing to be more environmental through even the Benevity platform, using Missions or social, [] all of those pro-social behaviors, everything from allowing your people to give and volunteer and rewarding them for it, to the stuff that you're doing at a corporate level and more strategic grants and things like that.
And I think it goes back to my previous question then, how come there's so many variables to this? Because, I think businesses want to know both from a people sense and from the business sense, does this thing actually do what it's supposed to do and what is the positive impact to the business itself? It's a great question and the reason why is, similar to what we talked about in other videos, that there are just so many different justifications and reasons and years [] of history within these companies that make the need for reporting and the expectations from their stakeholders, a little bit different, depending on who it is, how much they're investing and things like that.
I don't know, maybe I'm just making it I'm simplifying it, is there spreadsheets or things that people can download, or where would one go [] if you're just starting to see how you can show your executives or show your team the impact of your programs?
So, every organization has its own success metrics and like I was saying before, some of them are really challenging because you can't prove true impact. So, some companies, like I said, are measuring [] the dollars invested. They're benchmarking against peers. They're tracking participation of their people in these types of pro-social things.
And then, at a deeper level, you can start to measure engagement. So, if you're thinking about employees engaged in these programs, if you think of it as a scale of levels of engagement, you can have people participating in a transactional way.
So, they're donating their money. They're giving their [] time because the company asks them to. Breadcrumb Home Guides Grow your business Planning business growth Measure the effects of your corporate social responsibility.
Corporate social responsibility CSR Measure the effects of your corporate social responsibility. However, measurement is extremely important as it enables you to: disclose the importance of your activities to your stakeholders and customers improve your decision-making as you move forward with your CSR programmes align your activities with corporate goals, eg decrease turnover or develop staff skills By measuring the impact of your CSR, you can connect the value of your activities to your company's bottom line.
How to measure the impact of your CSR? For CSR experts like Horowitz, when it comes to corporate social performance, follow the leaders and then become a leader.
How you measure your progress towards desired outcomes will sustain your whole CSR campaign. The CSR initiatives that achieve the greatest impacts treat measurement as an ongoing and cyclical process with feedback loops that enrich programs as they evolve. Getting hung out on vanity metrics will be tempting.
Armed with a firm grasp of each, you can leverage them to build out your KPIs. Think of these KPIs as your little yellow brick road leading towards the eventual outcomes you seek. As mentioned above, any big outcome goals should be backed by a well-thought out set of KPIs that, if achieved, clearly demonstrate traction towards that goal over time.
Remember that this is a highly-iterative process. In CSR work, the facts on the ground change daily. Oftentimes you will begin with a big goal, jump to your KPIs, only to realize that you could be using a better tool to measure those KPIs and need to slightly revise things. The key here is coming up with a shared vision that enlist external and internal stakeholders and that is aligned to the assets all parties are bringing to bear on the CSR programming.
When it comes to measuring corporate social performance, Amanda Ponzar has some recommended reading for the class. As CSR practice grows, expect to see more industry benchmarking tools such as these being embraced and utilized by organizations of all stripes. Jerome Tennille believes that communities being served by CSR initiatives should set their own desired outcomes.
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