Searching for the Most Accurate Way to Measure Corporate Social Responsibility for Ethical Consumers

• In Event: 240 - Section on Consumers and Consumption Roundtable Session (one-hour).
  In Paper Session: Table 03. Political and Ethical Consumerism Then and Now

Abstract

This paper compares four corporate social responsibility (CSR) measurement systems produced specifically for consumers in the US, UK and Australia in order to understand the current level of consensus/diversity in: 1) definitions of CSR, 2) methodologies for measuring CSR, and 3) the consistency of outcomes [i.e. how company CSR rankings compare across systems]. While content analysis (including books, websites, and smart phone apps for each system) is utilized to examine definitions and methodologies, statistical analysis (means, standard and non-standard deviations and ANOVA tests) is used to compare the CSR rankings of the 106 companies common to all of the systems from best to worst CSR performers. The findings demonstrate that while CSR definition are closely aligned, measurement methodologies vary significantly, and outcomes are considerably divergent with consensus on only 18% of company rankings. Recommendations include a call for increased research in the area of empirically measuring overall CSR behavior (with an emphasis on indicator validity) rather than generating additional research on CSR reporting, correlations with corporate reputations, or relying on investment-based research agencies. A final assessment concludes that without the accurate measurement of CSR, ethical consumers cannot effectively translate their spending into an efficient system of economic rewards and punishment to facilitate the social change that CSR promises to deliver.

Author

• Ellis Jones, Holy Cross College