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

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  • Constantin Belu

Abstract

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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    4. Hamilton James T., 1995. "Pollution as News: Media and Stock Market Reactions to the Toxics Release Inventory Data," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 98-113, January.
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    6. Estellita Lins, M.P. & Moreira da Silva, A.C. & Lovell, C.A.K., 2007. "Avoiding infeasibility in DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 181(2), pages 956-966, September.
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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. 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.
    5. repec:spr:qualqt:v:51:y:2017:i:4:d:10.1007_s11135-016-0348-8 is not listed on IDEAS
    6. repec:eee:ejores:v:264:y:2018:i:1:p:1-16 is not listed on IDEAS
    7. 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.
    8. 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.

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