Measuring Corporate Sustainability and Environmental, Social, and Corporate Governance Value Added

Alena Kocmanová, Marie Pavláková Dočekalová, Stanislav Škapa and Lenka Širáňová
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Alena Kocmanová: Department of Economics, Faculty of Business and Management, Brno University of Technology, Kolejní 4, Brno 61200, Czech Republic
Marie Pavláková Dočekalová: Department of Economics, Faculty of Business and Management, Brno University of Technology, Kolejní 4, Brno 61200, Czech Republic
Stanislav Škapa: Department of Economics, Faculty of Business and Management, Brno University of Technology, Kolejní 4, Brno 61200, Czech Republic
Lenka Širáňová: Department of Informatics, Faculty of Business and Management, Brno University of Technology, Kolejní 4, Brno 61200, Czech Republic

Sustainability, 2016, vol. 8, issue 9, 1-0

Abstract: The aim of the paper is to propose a model for measuring sustainable value which would complexly assess environmental, social, and corporate governance contribution to value creation. In the paper the concept of the Sustainable Environmental, Social and Corporate Governance Value Added is presented. The Sustainable Environmental, Social and Corporate Governance Value Added is based on the Sustainable Value Added model and combines weighted environmental, social, and corporate governance indicators with their benchmarks determined by Data Envelopment Analysis. Benchmark values of indicators were set for each company separately and determine the optimal combination of environmental, social, and corporate governance inputs to economic outcomes. The Sustainable Environmental, Social and Corporate Governance Value Added methodology is applied on real-life corporate data and presented through a case study. The value added of most of the selected companies was negative, even though economic indicators of all of them are positive. The Sustainable Environmental, Social and Corporate Governance Value Added is intended to help owners, investors, and other stakeholders in their decision-making and sustainability assessment. The use of environmental, social, and corporate governance factors helps identify the company’s strengths and weaknesses, and provides a more sophisticated insight into it than the one-dimensional methods based on economic performance alone.

Keywords: corporate sustainability; environmental, social, corporate governance indicators; value added; factor analysis; confirmatory factor analysis; Data Envelopment Analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:8:y:2016:i:9:p:945-:d:78251

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