Measuring the non-financial performance of firms through the lens of the OECD Well-being Framework: A common measurement framework for “Scope 1” Social performance

Vincent Siegerink, Michal Shinwell and Žiga Žarnic

No 3, OECD Papers on Well-being and Inequalities from OECD Publishing

Abstract: This paper presents a conceptual framework for understanding the non-financial performance of firms through the lens of the OECD Well-being Framework. Building on existing approaches for measuring non-financial performance, it proposes a measurement framework and indicator set for what may be referred to as “Scope 1” Social performance. This refers to the well-being of stakeholders that operate within the operational boundaries of the firm, namely employees, and the capital resources that a firm contributes to and depletes that are directly relevant to society as a whole. In line with the OECD Well-being Framework, this paper emphasises the importance of measuring the well-being outcomes of stakeholders alongside the resources that firms produce and deplete. The paper also emphasises the importance of aligning the measurement of the non-financial performance of businesses at the macro-level and sectoral level by national statistical offices (NSOs) with micro-level measures collected by firms themselves. Going forward, the OECD will continue to address the measurement gaps identified in this paper and to encourage further alignment of corporate and official measures of business non-financial performance.

Keywords: ESG; Inclusive business models; Non-financial performance indicators; Social impact measurement; Sustainability; Well-being framework (search for similar items in EconPapers)
JEL-codes: D63 G30 I31 M14 (search for similar items in EconPapers)
Date: 2022-01-27
New Economics Papers: this item is included in nep-cfn and nep-sbm
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1787/28850c7f-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:wiseaa:03-en

Access Statistics for this paper

More papers in OECD Papers on Well-being and Inequalities from OECD Publishing
Bibliographic data for series maintained by ( this e-mail address is bad, please contact ).