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Ranking corporations based on sustainable and socially responsible practices. A data envelopment analysis (DEA) approach


  • Constantin Belu


This study ranks publicly listed corporations based on social and environmental (i.e. sustainable) achievements in relation to financial results, by using a data envelopment analysis (DEA) approach with financial performance indicators (return on assets, return on equity and yearly stock return) as inputs and sustainability scores as outputs. The sustainability scores cover a wide range of sustainable practices and were provided by a specialized screening company. Our calculated DEA indices provide a measure of the commitment of firms towards sustainable practices. The main findings are that many companies are positioned well below best practice in their respective industries. Industry sectors that are less scrutinized by the public (e.g. banking) are found to be less competitive in terms of sustainable practices. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.

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  • Constantin Belu, 2009. "Ranking corporations based on sustainable and socially responsible practices. A data envelopment analysis (DEA) approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 17(4), pages 257-268.
  • Handle: RePEc:wly:sustdv:v:17:y:2009:i:4:p:257-268
    DOI: 10.1002/sd.390

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    References listed on IDEAS

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    2. Abagail McWilliams & Donald S. Siegel & Patrick M. Wright, 2006. "Corporate Social Responsibility: International Perspectives," Rensselaer Working Papers in Economics 0604, Rensselaer Polytechnic Institute, Department of Economics.
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    Cited by:

    1. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    2. repec:ipg:wpaper:2014-097 is not listed on IDEAS
    3. Jean-Michel Sahuta & Sandrine Boulerne & Medhi Mili & Frédéric Teulon, 2014. "What Relation Exists Between Corporate Social Responsibility (Csr) And Longevity Of Firms?," Working Papers 2014-248, Department of Research, Ipag Business School.
    4. Víctor Amor-Esteban & Mª-Purificación Galindo-Villardón & Fátima David, 2018. "Study of the Importance of National Identity in the Development of Corporate Social Responsibility Practices: A Multivariate Vision," Administrative Sciences, MDPI, Open Access Journal, vol. 8(3), pages 1-33, August.
    5. Galagedera, Don U.A., 2019. "Modelling social responsibility in mutual fund performance appraisal: A two-stage data envelopment analysis model with non-discretionary first stage output," European Journal of Operational Research, Elsevier, vol. 273(1), pages 376-389.
    6. Jean-Michel Sahut & Sandrine Boulerne & Medhi Mili & Frédéric Teulon, 2012. "What relation exists between CSR and longevity of firms?," Post-Print halshs-02099280, HAL.
    7. Hélène Pasquini & Frédéric Teulon, 2014. "What is the perception of corporate social responsibility for fund managers in Switzerland?," Working Papers 2014-97, Department of Research, Ipag Business School.
    8. Matthias Staessens & Pieter Jan Kerstens & Johan Bruneel & Laurens Cherchye, 2019. "Data Envelopment Analysis and Social Enterprises: Analysing Performance, Strategic Orientation and Mission Drift," Journal of Business Ethics, Springer, vol. 159(2), pages 325-341, October.
    9. Fu-Chiang Yang, 2017. "Integrating corporate social responsibility and profitability into best practice selection: the case of large Taiwanese firms," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1493-1512, July.
    10. Oliveira, Renata & Zanella, Andreia & Camanho, Ana S., 2019. "The assessment of corporate social responsibility: The construction of an industry ranking and identification of potential for improvement," European Journal of Operational Research, Elsevier, vol. 278(2), pages 498-513.
    11. Zhou, Haibo & Yang, Yi & Chen, Yao & Zhu, Joe, 2018. "Data envelopment analysis application in sustainability: The origins, development and future directions," European Journal of Operational Research, Elsevier, vol. 264(1), pages 1-16.
    12. Béchir Ben Lahouel, 2016. "Eco-efficiency analysis of French firms: a data envelopment analysis approach," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 18(3), pages 395-416, July.
    13. Juan Aparicio & Magdalena Kapelko, 2019. "Enhancing the Measurement of Composite Indicators of Corporate Social Performance," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 144(2), pages 807-826, July.
    14. Francesco Sandulli & José Fernández-Menéndez & Antonio Rodríguez-Duarte & José López-Sánchez, 2012. "The productivity payoff of information technology in multimarket SMEs," Small Business Economics, Springer, vol. 39(1), pages 99-117, July.
    15. Soytas, Mehmet Ali & Denizel, Meltem & Durak Usar, Damla, 2019. "Addressing endogeneity in the causal relationship between sustainability and financial performance," International Journal of Production Economics, Elsevier, vol. 210(C), pages 56-71.
    16. Toshiyuki Sueyoshi & Mika Goto, 2018. "Difficulties and remedies on DEA environmental assessment," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 7(1), pages 1-20, December.

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