Measuring Corporate Social Responsibility

A Survey of Recent Research

Seong Cho, PhD, and Cheol Lee, PhD, and Cheong K. Park, PhD

Recent financial crises and a growing call for sustainability reporting guidelines like those from the Global Reporting Initiative (GRI) have placed pressure on corporate executives to provide the public with information that goes beyond a company's standard financial reports. These nonfinancial performance measures are more important than a company's current economic performance in creating long-term shareholder value, according to a survey of top executives (“Management Barometer Survey,” PricewaterhouseCoopers, 2002). These reports are often evaluated, and a company's performance of corporate social responsibility (CSR) is generally quantified by rating agencies. For example, MSCI ESG Research provides in-depth analyses of the environmental, social, and governance-related business practices of companies worldwide.