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Measurement of Corporate Social Responsibility: A Review of Corporate Sustainability Indexes, Rankings and Ratings

Author

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  • Borja Diez-Cañamero

    (Department of Graphic Design and Engineering Projects, Faculty of Engineering, University of the Basque Country (UPV/EHU), 48013 Bilbao, Spain)

  • Tania Bishara

    (Department of Graphic Design and Engineering Projects, Faculty of Engineering, University of the Basque Country (UPV/EHU), 48013 Bilbao, Spain)

  • Jose Ramon Otegi-Olaso

    (Department of Graphic Design and Engineering Projects, Faculty of Engineering, University of the Basque Country (UPV/EHU), 48013 Bilbao, Spain)

  • Rikardo Minguez

    (Department of Graphic Design and Engineering Projects, Faculty of Engineering, University of the Basque Country (UPV/EHU), 48013 Bilbao, Spain)

  • José María Fernández

    (IHOBE, Basque Government, 48011 Bilbao, Spain)

Abstract

Companies are currently changing their traditional role in society and transforming it into a proactive role in which their operations generate social and environmental positive impacts. Corporate Social Responsibility (CSR) has evolved from simple philanthropy to a more theoretical concept with a new corporate philosophy that takes all the interests of all stakeholders into consideration. The financial market is pushing the development of Socially Responsible Investment (SRI), which has led to the rise of Corporate Sustainability Systems (CSS). These CSSs are tools that rate corporate performance on sustainability. However, they constitute a chaotic universe, with instruments of different nature. This paper identifies and groups the common characteristics of the CSSs into three different typologies: Indexes, Rankings and Ratings. Despite this classification, and although the fundamental pillar of CSR is the “Stakeholder Theory”, CSSs are still not ideal tools to be used by all stakeholders. From the magma of CSSs, this article identifies and describes, through a comparative analysis, those which best comply with the “Stakeholder Theory”. This paper facilitates the work of researchers and stakeholders by exposing the differential characteristics of the most important CSSs.

Suggested Citation

  • Borja Diez-Cañamero & Tania Bishara & Jose Ramon Otegi-Olaso & Rikardo Minguez & José María Fernández, 2020. "Measurement of Corporate Social Responsibility: A Review of Corporate Sustainability Indexes, Rankings and Ratings," Sustainability, MDPI, vol. 12(5), pages 1-36, March.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:5:p:2153-:d:330920
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    16. Martinez-Valencia, Lina & Garcia-Perez, Manuel & Wolcott, Michael P., 2021. "Supply chain configuration of sustainable aviation fuel: Review, challenges, and pathways for including environmental and social benefits," Renewable and Sustainable Energy Reviews, Elsevier, vol. 152(C).
    17. Camilla Salvatore & Silvia Biffignandi & Annamaria Bianchi, 2022. "Corporate Social Responsibility Activities Through Twitter: From Topic Model Analysis to Indexes Measuring Communication Characteristics," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 164(3), pages 1217-1248, December.
    18. Esmee M. Veenstra & Naomi Ellemers, 2020. "ESG Indicators as Organizational Performance Goals: Do Rating Agencies Encourage a Holistic Approach?," Sustainability, MDPI, vol. 12(24), pages 1-15, December.
    19. Eduardo Jiménez & Marta de la Cuesta-González & Montserrat Boronat-Navarro, 2021. "How Small and Medium-Sized Enterprises Can Uptake the Sustainable Development Goals through a Cluster Management Organization: A Case Study," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    20. Yaghoub Abdi & Xiaoni Li & Xavier Càmara-Turull, 2022. "Exploring the impact of sustainability (ESG) disclosure on firm value and financial performance (FP) in airline industry: the moderating role of size and age," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5052-5079, April.
    21. Banu Dincer & Ayşe İrem Keskin & Caner Dincer, 2023. "Nexus between Sustainability Reporting and Firm Performance: Considering Industry Groups, Accounting, and Market Measures," Sustainability, MDPI, vol. 15(7), pages 1-13, March.
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