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The assessment of socio-environmental performance change: A Benefit of the Doubt indicator based on Directional Distance Function and Malmquist productivity index

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  • Ben Lahouel, Béchir
  • Ben Zaied, Younes
  • Taleb, Lotfi
  • Kočišová, Kristína

Abstract

This study develops an enhanced composite indicator to assess the social and environmental (socio-environmental) performance of firms over time using the ‘Benefit of the Doubt’ (BoD) model specified with the directional distance function and the Malmquist productivity index. The new approach integrates both social and environmental benefits and burdens based on international standards and guidelines. This methodology enables the assessment of change in the socio-environmental performance of firms, as well as their classification in four categories based on the evolution of their technical efficiency and innovation capabilities. In addition, this paper identifies innovative firms in terms of socio-environmental achievements.

Suggested Citation

  • Ben Lahouel, Béchir & Ben Zaied, Younes & Taleb, Lotfi & Kočišová, Kristína, 2022. "The assessment of socio-environmental performance change: A Benefit of the Doubt indicator based on Directional Distance Function and Malmquist productivity index," Finance Research Letters, Elsevier, vol. 49(C).
    • Handle: RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322003841
    DOI: 10.1016/j.frl.2022.103164
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