The assessment of socio-environmental performance change: A Benefit of the Doubt indicator based on Directional Distance Function and Malmquist productivity index

Béchir Ben Lahouel, Younes Ben Zaied, Lotfi Taleb and Kristína Kočišová

Finance Research Letters, 2022, vol. 49, issue C

Abstract: This study develops an enhanced composite indicator to assess the social and environmental (socio-environmental) performance of firms over time using the ‘Benefit of the Doubt’ (BoD) model specified with the directional distance function and the Malmquist productivity index. The new approach integrates both social and environmental benefits and burdens based on international standards and guidelines. This methodology enables the assessment of change in the socio-environmental performance of firms, as well as their classification in four categories based on the evolution of their technical efficiency and innovation capabilities. In addition, this paper identifies innovative firms in terms of socio-environmental achievements.

Keywords: Corporate social responsibility/performance; Composite indicators; Data envelopment analysis; Benefit of the doubt; Malmquist productivity index; Directional distance function (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:49:y:2022:i:c:s1544612322003841

DOI: 10.1016/j.frl.2022.103164

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