IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v128y2016i2d10.1007_s11205-015-1062-y.html
   My bibliography  Save this article

Social Efficiency of For-profit Organizations in Brazil: An Empirical Analysis

Author

Listed:
  • Manuel Meireles

    (FACCAMP – Master’s Program in Administration)

  • Cida Sanches

    (FACCAMP – Master’s Program in Administration)

  • Samuel Ferreira

    (FACCAMP – Master’s Program in Administration)

  • José Osvaldo De Sordi

    (FMU- Master’s Program in Administration)

  • Givaldo Santos

    (UNIMEP- Methodist University of Piracicaba)

Abstract

This study proposes and validates a social efficiency indicator for profit-seeking organizations and applies it to assess the social efficiency of companies in Brazil. The study is quantitative and contains two samples: one of 87 large companies and one of 33 small and medium enterprises. The data received quantitative treatment using parametric techniques. Efficiency was analyzed using DEA Online Software. The proposed degree of social efficiency indicator is positively and significantly related to the social efficiency calculated using the DEA method. The conclusions also show that companies tend to resort to automation (or the incorporation of technology) to become more productive, resulting in higher productivity, more profit, more taxes and fewer jobs. The reduction in the number of jobs could rapidly lead our society to a situation in which “certain neighborhoods could become isolated, with unnecessary and unqualified people in potential conflict and leading a marginal existence”. This state of poverty would inevitably lead to environmental degradation.

Suggested Citation

  • Manuel Meireles & Cida Sanches & Samuel Ferreira & José Osvaldo De Sordi & Givaldo Santos, 2016. "Social Efficiency of For-profit Organizations in Brazil: An Empirical Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(2), pages 909-928, September.
  • Handle: RePEc:spr:soinre:v:128:y:2016:i:2:d:10.1007_s11205-015-1062-y
    DOI: 10.1007/s11205-015-1062-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-015-1062-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11205-015-1062-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Banker, Rajiv D. & Thrall, R. M., 1992. "Estimation of returns to scale using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 62(1), pages 74-84, October.
    2. Cassing, James H., 1996. "Protectionist mutual funds," European Journal of Political Economy, Elsevier, vol. 12(1), pages 1-18, April.
    3. Zhu, Joe, 2003. "Imprecise data envelopment analysis (IDEA): A review and improvement with an application," European Journal of Operational Research, Elsevier, vol. 144(3), pages 513-529, February.
    4. Tatsuki Ueda & Peter Moffatt, 2013. "A Socially Efficient Water Tariff Under the English Optional Metering Scheme," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(4), pages 495-523, April.
    5. Boyce, James K., 1994. "Inequality as a cause of environmental degradation," Ecological Economics, Elsevier, vol. 11(3), pages 169-178, December.
    6. B. Hollingsworth & P. Smith, 2003. "Use of ratios in data envelopment analysis," Applied Economics Letters, Taylor & Francis Journals, vol. 10(11), pages 733-735.
    7. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (II): Applications of the Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 2, number fuss1978a.
    8. Castelli, Lorenzo & Pesenti, Raffaele & Ukovich, Walter, 2004. "DEA-like models for the efficiency evaluation of hierarchically structured units," European Journal of Operational Research, Elsevier, vol. 154(2), pages 465-476, April.
    9. Fuss, Melvyn & McFadden, Daniel (ed.), 1978. "Production Economics: A Dual Approach to Theory and Applications," Elsevier Monographs, Elsevier, edition 1, number 9780444850133.
    10. James Boyce, 1994. "Inequality as a Cause of Environmental Degradation," Published Studies ps1, Political Economy Research Institute, University of Massachusetts at Amherst.
    11. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    12. Frey, Carl Benedikt & Osborne, Michael A., 2017. "The future of employment: How susceptible are jobs to computerisation?," Technological Forecasting and Social Change, Elsevier, vol. 114(C), pages 254-280.
    13. Louis Lefeber & Thomas Vietorisz, 2007. "The Meaning of Social Efficiency," Review of Political Economy, Taylor & Francis Journals, vol. 19(2), pages 139-164.
    14. Martin Ravallion, 2003. "Measuring Aggregate Welfare in Developing Countries: How Well Do National Accounts and Surveys Agree?," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 645-652, August.
    15. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    16. Fuss, Melvyn & McFadden, Daniel, 1978. "Production Economics: A Dual Approach to Theory and Applications (I): The Theory of Production," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, volume 1, number fuss1978.
    17. Kumbhakar,Subal C. & Lovell,C. A. Knox, 2003. "Stochastic Frontier Analysis," Cambridge Books, Cambridge University Press, number 9780521666633, September.
    18. Kwong-Leung Tang, 1998. "East Asian Newly Industrializing Countries: Economic Growth and Quality of Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 43(1), pages 69-96, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlos Serrano-Cinca & Yolanda Fuertes-Callén & Beatriz Cuellar-Fernández, 2021. "Managing for Stakeholders Using Multiple-Criteria Decision-Making Techniques," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 157(2), pages 581-601, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Cherchye, Laurens & De Rock, Bram & Hennebel, Veerle, 2014. "The economic meaning of Data Envelopment Analysis: A ‘behavioral’ perspective," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 29-37.
    2. Kuosmanen, Timo, 2001. "DEA with efficiency classification preserving conditional convexity," European Journal of Operational Research, Elsevier, vol. 132(2), pages 326-342, July.
    3. Gautam Ahuja & Sumit Majumdar, 1998. "An Assessment of the Performance of Indian State-Owned Enterprises," Journal of Productivity Analysis, Springer, vol. 9(2), pages 113-132, March.
    4. Luis R. Murillo‐Zamorano, 2004. "Economic Efficiency and Frontier Techniques," Journal of Economic Surveys, Wiley Blackwell, vol. 18(1), pages 33-77, February.
    5. F R Førsund & L Hjalmarsson, 2004. "Calculating scale elasticity in DEA models," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(10), pages 1023-1038, October.
    6. Touati-Tliba, Mohamed, 2024. "Comparative performance of Algeria's education districts: The Influence of colonial legacy through cultural capital," Socio-Economic Planning Sciences, Elsevier, vol. 91(C).
    7. Finn Førsund & Lennart Hjalmarsson & Vladimir Krivonozhko & Oleg Utkin, 2007. "Calculation of scale elasticities in DEA models: direct and indirect approaches," Journal of Productivity Analysis, Springer, vol. 28(1), pages 45-56, October.
    8. Cherchye, Laurens & Kuosmanen, Timo & Post, Thierry, 2002. "Non-parametric production analysis in non-competitive environments," International Journal of Production Economics, Elsevier, vol. 80(3), pages 279-294, December.
    9. Timo Kuosmanen, 2003. "Duality Theory of Non-convex Technologies," Journal of Productivity Analysis, Springer, vol. 20(3), pages 273-304, November.
    10. Perelman, Sergio & Santín, Daniel, 2009. "How to generate regularly behaved production data? A Monte Carlo experimentation on DEA scale efficiency measurement," European Journal of Operational Research, Elsevier, vol. 199(1), pages 303-310, November.
    11. Michaelides, Panayotis G. & Vouldis, Angelos T. & Tsionas, Efthymios G., 2010. "Globally flexible functional forms: The neural distance function," European Journal of Operational Research, Elsevier, vol. 206(2), pages 456-469, October.
    12. Dairo Estrada & Poldy Osorio, 2004. "Effects of Financial Capital on Colombian Banking Efficiency," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 22(47), pages 162-201, December.
    13. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, February.
    14. Swetlana Renner & Thomas Glauben & Heinrich Hockmann, 2014. "Measurement and decomposition of flexibility of multi-output firms," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 41(5), pages 745-773.
    15. Bruno De Borger & Kristiaan Kerstens & Diego Prior & Ignace Van de Woestyne, 2013. "Static efficiency decompositions and capacity utilization: integrating economic and technical capacity notions," Applied Economics, Taylor & Francis Journals, vol. 45(24), pages 3529-3529, August.
    16. Abad, Arnaud & Briec, Walter, 2019. "On the axiomatic of pollution-generating technologies: Non-parametric production analysis," European Journal of Operational Research, Elsevier, vol. 277(1), pages 377-390.
    17. Laurens Cherchye & Timo Kuosmanen & Thierry Post, 2000. "What Is the Economic Meaning of FDH? A Reply to Thrall," Journal of Productivity Analysis, Springer, vol. 13(3), pages 263-267, May.
    18. Dalton, Timothy J., 2004. "Indivisible And Spatial Components Of Dairy Firm Efficiency," 2004 Annual meeting, August 1-4, Denver, CO 20320, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    19. Thomas P. Triebs & David S. Saal & Pablo Arocena & Subal C. Kumbhakar, 2016. "Estimating economies of scale and scope with flexible technology," Journal of Productivity Analysis, Springer, vol. 45(2), pages 173-186, April.
    20. Víctor M. Giménez García, 2004. "Un modelo FDH para la medida de la eficiencia en costes de los departamentos universitarios," Hacienda Pública Española / Review of Public Economics, IEF, vol. 168(1), pages 69-92, march.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:128:y:2016:i:2:d:10.1007_s11205-015-1062-y. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.