Measuring Corporate Social Performance: An Efficiency Perspective

Production and Operations Management, Vol. 20, No. 6, pp. 789-804, 2011

1 Pages Posted: 9 Jul 2010 Last revised: 3 Mar 2012

See all articles by Chien-Ming Chen

Chien-Ming Chen

Nanyang Technological University (NTU) - Nanyang Business School

Magali A. Delmas

University of California, Los Angeles (UCLA)

Date Written: July 7, 2010

Abstract

Aggregation of corporate social performance (CSP) metrics poses a major challenge to researchers and practitioners. This study provides a critical evaluation of current aggregation approaches and proposes a new methodology based on Data Envelopment Analysis (DEA) to compute a CSP index. DEA is independent of subjective weight specifications and provides an efficiency index to benchmark the CSP of firms. Using CSP data from 2,190 firms in three major industries from the Kinder, Lydenberg, and Domini Inc. database in 2007, our study presents the first application of the DEA model for CSP and ordinal data and opens up a new path for future empirical CSP research.

Keywords: Corporate Social Performance, KLD, Efficiency, Data Envelopment Analysis

Suggested Citation

Chen, Chien-Ming and Delmas, Magali A., Measuring Corporate Social Performance: An Efficiency Perspective (July 7, 2010). Production and Operations Management, Vol. 20, No. 6, pp. 789-804, 2011. Available at SSRN: https://ssrn.com/abstract=1636046

Chien-Ming Chen

Nanyang Technological University (NTU) - Nanyang Business School ( email )

Singapore, 639798
Singapore

Magali A. Delmas (Contact Author)

University of California, Los Angeles (UCLA) ( email )

405 Hilgard Avenue
Box 951361
Los Angeles, CA 90095
United States

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