Social impact as a measure of fit between firm activities and stakeholder expectations

International Journal of Business Governance and Ethics 4 (1):3 (2008)
  Copy   BIBTEX

Abstract

Institutional investors are increasingly focusing on firms that prioritise Corporate Social Responsibility. In the absence of any objective measure of a firm's CSR Performance, their investment choices are largely guided by independent rating indices that rank firms according to their social performance metrics. As a result, firms looking to increase their attractiveness as targets of social investment focus their CSR efforts on increasing the visibility of activities that are recognised by such indices. However, the validity of these indices as accurate measures of firms' actual social performance has repeatedly been called into question. This means that the ability of these indices to measure and report on firms' actual social impact cannot be ascertained with any degree of accuracy. The result is that firms are incentivised to engage in activities that cannot be said to improve social responsibility, and may even ultimately harm society. Thus, another method of measuring CSP must be found that enables firms to measure their true impact on society. We propose a new approach to measuring CSP that is integrated with stakeholder theory. Such an approach provides managers of firms with an interest in engaging in real social development for the purposes of ensuring firm survival with the ability to understand their social obligations, and the ability to measure the resulting benefit to society

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 89,408

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Analytics

Added to PP
2009-01-28

Downloads
62 (#231,058)

6 months
3 (#426,595)

Historical graph of downloads
How can I increase my downloads?

Citations of this work

No citations found.

Add more citations

References found in this work

Corporate reputation focusing the Zeitgeist.Patsy G. Lewellyn - 2002 - Business and Society 41 (4):446-455.

Add more references