Policies to promote Corporate social responsibility (CSR) and assessment of CSR impacts

82 2019, XXII, 1 Business Adminis a ion and Managemen DOI: 10.15240/ ul/001/2019-1-006 In oduc ion When implemen ing sus ainable de elopmen p inciples, business should play he co e ole, and he co po a e social esponsibili y is one o he examples o he ac i e ole o en e p ises in implemen ing sus ainable de elopmen goals. The co po a e social esponsibili y (CSR) desc ibes he companies ha a e awa e o hei mission and ake esponsibili y o hei impac on socie y in gene al. The CSR is i al o sus ainabili y, compe i i eness, ad ance o companies and de elopmen o he wo ld economy. The CSR p o ides bene i s o isk con olling, allows cos sa ings and s ipula es a o dabili y o he capi al, acili a es s akeholde s’ ela ionships and imp o emen o human esou ce managemen . In p ac ice, human igh s and co po a e social esponsibili y ha e become an impo an aspec o business s a egies o many companies. The co po a e social esponsibili y is cen al o he sus ainabili y, compe i i eness and inno a ion o he economy o each coun y and is igh ly linked o he success when implemen ing Sus ainable De elopmen Goals (SDGs) by wo ld coun ies. The impo ance o CSR has inc eased in ecen yea s, aking in o accoun he i id g ow h o ins i u ion, unds, a ious online pla o ms and po als ha a e dealing wi h he CSR and inspi ing en e p ises o Imp o e hei p ac ices, acco ding o a ious esponsibili y p ac ices and c i e ia (Guens e e al., 2010; Ghoul e al., 2011). O e all, he CSR de i ni ion co e s qui e di e en kinds o socially esponsible beha iou s. All hese esponsible beha iou s can be alloca ed o h ee a eas: en i onmen al, social and go e nance (ESG) ac o s. The En i onmen al dimension co e s obliga ions o in eg a e en i onmen al conside a ions in o all he ac i i ies o companies, o example, he designing, manu ac u ing, supplying and dis ibu ing o p oduc s. The Social dimension is associa ed wi h posi i e human esou ces managemen , aking in o accoun human igh s equi emen s and includes app op ia e aining, ca ee de elopmen , employee pa icipa ion, quali y o wo king condi ion s anda ds. The Go e nance dimension is linked o he companies’ ela ionship and in e ac ion wi h a ious sha eholde s such as cus ome s and supplie s, egula ion bodies, s a egic alliances e c. The main beha iou al p ac ices include he p e en ion o in e es con l ic s, co up ion, ai in o ma ion supply o consume s e c. The e is a d ama ic g ow h o o ganiza ions ha a e ocused on he na ional and in e na ional le els by p o iding ad ice and implemen ing a ious p ojec s and p og ams a ound he wo ld. The e a e hund eds o CSR ha a e epo ing ini ia i es and ools all o e he wo ld. The e a e a ious public policies o p omo e he CSR ha a e implemen ed in di e en coun ies. These ends o d ama ic g ow h o he CSR ac i i ies indica e ha li e a u e on he CSR ha e al eady shi ed om he issues, which a e ele an o he companies’ mission and alue o he CSR o he i m, o he p ocesses by which companies enac hei socie al impac s by implemen ing CSR and o he socie al ou comes o his. The e o e, nowadays, he main issue is how socie ies and coun ies can bene i om he CSR, especially in e ms o dealing wi h majo sus ainable de elopmen challenges, such as po e y, educa ion, heal h, ene gy and en i onmen . Recen scien i i c discussion on he assessmen o impac s o he CSR and measu es o p omo e he CSR p o ides con adic o y esul s and i ndings. The e o e, he aim o his pape is o analyse and ca ego ize public policies and measu es o p omo e he CSR and assess he CSR impac s. In o de o achie e his aim, he ollowing asks ha e been se : POLICIES TO PROMOTE CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ASSESSMENT OF CSR IMPACTS Jin ao Lu, Licheng Ren, Wen ang Lin, Yi an He, Jus as S eimikis EM_1_2019.indd 82EM_1_2019.indd 82 8.3.2019 9:16:088.3.2019 9:16:08 83 1, XXII, 2019 Business Adminis a ion and Managemen 1. To analyse and sys ema ize ecen li e a u e on he CSR; 2. To discuss he main policies and measu es and epo ing ini ia i es o p omo e CSR and hei dynamics; 3. To analyse measu es o he assessmen o CSR impac s; 4. To analyse he CSR impac on Sus ainable De elopmen Goals; 5. To p o ide policy ecommenda ions based on he conduc ed analysis. The s uc u e o he pape : in he i s sec ion o pape , he li e a u e e iew on he CSR and i s impac s is p o ided; in he second sec ion, he main policy ools, aiming a he p omo ion o CSR and epo ing equi emen s, a e sys ema ized; in he hi d sec ion, he measu es o assess he impac s o CSR c i ically is analysed; in he ou h sec ion, he ques ions o linking CSR impac wi h sus ainable de elopmen goals a e de eloped, and he impac o CSR on SDGs is analysed; in he i h sec ion, he conclusions and policy implica ions a e p o ided. 1. Li e a u e Re iew Recen ly, he e ha e been published nume ous pape s ha a e s ill dealing wi h he CSR concep . Nume ous de i ni ions o CSR we e de eloped; howe e , no clea de i ni ion has been p o ided, making he measu emen o CSR and i s di i cul impac s (Ko le & Lee, 2005; Ca oll, 2008; Tu ke , 2009; Aguinis & Gla as, 2012; Eccles e al., 2012; Lee & K isnawa i, 2014; Max i eld, 2015). The CSR ac i i ies in li e a u e co e he in eg a ion o social issues in o he design o p oduc s and manu ac u ing p ocesses, adop ing p oac i e human esou ce managemen ools and mechanisms, ad ancing he goals o communi y and NGO de elopmen s, ensu ing be e s anda ds o en i onmen al p o ec ion by implemen ing pollu ion aba emen and he ecycling o was e e c. Simila ly, he e is s ill no declining in e es among schola s in he p ecu so s and he esul s o CSR; howe e , o bo h academicians and policy make s, he analysis o CSR is s ill qui e chao ic, and he e a e no commonly ag eed heo e ical assessmen amewo ks and measu emen echniques o he CSR impac s. The empi ical me hods a e lacking heo e ical amewo k and ha e no been ag eed among schola s and p ac i ione s. In addi ion, i is di i cul o analyse he SCR an eceden s and con sequences o he CSR by applying one single discipline. Mos o he pape s ha a e analysing he consequences o CSR ocus on he ela ion be ween CSR and i m pe o mance. These s udies examined mainly he changes in s ock p ices o sho - un and used hem as a p oxy o he assessmen o companies’ pe o mance. Some s udies applied eg ession analysis o assessing he p o i abili y based on he e u n on asse s. They applied he e u n on asse s as a dependen a iable in he eg ession model and ied o answe he ques ion whe he i ms do well by doing good. The esul s o hese s udies showed con adic o y i ndings: nega i e ela ion be ween he CSR and e u n on asse s o no ela ion a all. Some s udies ound a posi i e ela ionship be ween CSR and he i ms’ p o i s (Lenz e al., 2017; P ice & Sun, 2017; Va ada ajan & Kaul, 2017; A ms ong & G een, 2013; Lee & Max i eld, 2015; Maye , 2015). The e is no consis ency in he esul s o hese s udies, dealing wi h he impac s o CSR on i ms’ pe o mance. This is due o a ious inconsis encies linked o he de i ni ion o CSR, de i ni ion o i m pe o mance and indica o s o his pe o mance, a iances o samples, esea ch design, changes o e he ime, which we e no p ope ly aken in o accoun (Che ne e al., 2015; Aspelund, 2017). The e o e, he empi ical esea ch dealing wi h he impac o CSR on i ms’ pe o mance is con using and no conclusi e a all. Acco ding o Wang e al. (2016), his is linked o he applica ion o di e en CSR meanings, no heo e ically soundly de i ned measu es o he CSR and wide di e ences in he esea ch me hodologies. McWilliams and Siegel (2000) emphasized he weaknesses o he e en s udy me hodol- ogy o assess he consequences o he CSR ha a e applied in mos s udies. McWilliams and Siegel (2000) p o ed in hei pape ha he esul s o all e en s udies on he CSR ha we e published in op managemen jou nals we e un eliable and had e y se ious l aws in bo h esea ch design and implemen a ion. Mo eo e , hey ques ioned he applica ion o con en ional eg ession o he analysis o he ela ionship be ween co po a e social esponsibili y and i m pe o mance. Ba on (2001) made a dis inc ion be ween al uis ic CSR and s a egic CSR, and Hillman EM_1_2019.indd 83EM_1_2019.indd 83 8.3.2019 9:16:088.3.2019 9:16:08 84 2019, XXII, 1 Business Adminis a ion and Managemen and Keim (2001) p o ed ha empi ical es s o he ela ion be ween CSR and i m pe o mance should disagg ega e CSR ac i i ies based on his p inciple. The s a egic CSR is add essed by he s akeholde managemen , and he al uis ic CSR is a ge ing social issues. Hillman and Keim (2001) applied disagg ega ed model and epo ed ha he e is a posi i e ela ionship be ween he i m economic pe o mance and s a egic CSR, and he e is a nega i e ela ionship be ween he al uis ic CSR and he i m’s economic pe o mance. Though, in li e a u e, he e has been made many a emp s o de i ne he de e minan s o CSR, i is s ill unclea wha is he main eason o companies o employ o no employ he CSR disclosu e p ac ices e en now (C illy e al., 2016; Se aes & Tamayo, 2013; Eps ein, Buho ac, 2016). The e is a conside able inc ease in li e a u e on he CSR disclosu e; howe e , only a limi ed numbe o pape s a e dealing wi h he ela ionship be ween he CSR pene a ion and ins i u ional ac o s ha ha e an impac on he CSR disclosu e (Desai, 2016; Collucia e al., 2018). Acco ding o Campbell (2007), he esponsible beha iou o companies is a ec ed by such ins i u ional ac o s as ollows: cul u al ai s, egula ions, he p esence o ins i u ionalized no ms on he CSR disclosu e, co up ion pe cep ion le el e c. These ins i u ional d i e s ha e a sys ema ic e ec on he CSR beha iou o i ms. Some s udies p o ed ha CSR pene a ion is highe in coun ies ha ha e weake ins i u ions. Jackson and Apos olakou (2010) ha e in es iga ed he impac o di e en ins i u ional ac o s on he CSR policies o he selec ed Eu opean i ms and showed ha i ms ha a e ope a ing in Anglo-Saxon coun ies (libe al ma ke economies) ha e a highe le el o CSR pene a ion and disclosu e han i ms in he o he Eu opean coun ies ha a e ha ing mo e egula ed economies like he Medi e anean o Con inen al coun ies. The s udy (Jackson & Apos olakou, 2010) e ealed ha i ms in coun ies wi h s onge ins i u ions a e able o each jus he minimum s anda d o CSR wi hou seeking o he bes o highes esul s. Ano he s udy by El Ghoul e al. (2017) showed ha he CSR disclosu e alue is g ea e in coun ies wi h weake ins i u ions and mo e laissez- ai e go e nmen s. Howe e , o he s udies ound a posi i e ela ionship be ween he s ong ins i u ions and CSR pene a ion (Dhaliwal e al., 2012). Ioannou and Se a eim (2012) p o ed ha he cul u al ai s, poli ical sys em in he coun y and educa ion sys em ha e he mos signi i can impac on he CSR disclosu e. Cahan e al. (2016) examined he impac o quali y o ins i u ions on he CSR disclosu e le el and showed ha all hese ac o s ha e a posi i e and s ong impac on he CSR pene a ion and pe o mance. I could be concluded ha he highe is he quali y o ins i u ions in he coun y, he highe is he pene a ion o he CSR. Ga cia- Sanchez e al. (2016) examined he CSR pe o mance o i ms in 20 de eloped coun ies and showed ha companies in coun ies wi h s ong ins i u ional en i onmen make all e o s o ensu e hei CSR disclosu e. In addi ion, he i ms ha a e ope a ing in coun ies wi h highe long- e m o ien a ion, collec i ism, eminism and unce ain y a oidance a e mo e keen on he CSR disclosu e. The s udy by Colucia e al. (2018) p o ed ha a s ong legal sys em in he coun y has a posi i e impac on he CSR pe o mance and disclosu e. The e o e, he main conclusion is ha social, poli ical and legal ac o s ha e an impac on he anspa ency o co po a e beha iou o companies. The ollowing ins i u ional ac o s ha a e he mos impo an o he le el o CSR disclosu e, i.e., egula o y quali y, ule o law and oice and accoun abili y, ha e a posi i e impac on he CSR disclosu e. Such ac o s as poli ical s abili y and go e nance e ec i eness ha e insigni i can impac on he CSR pene a ion (Colucia e al., 2018). The e o e, he li e a u e on CSR can be b oadly di ided in o h ee g oups, based on he con en o s udies: (1) an eceden , (2) ou come and (3) p ocess o ien ed. The “an eceden ” ca ego y s udies analyse he main ac o s ha de e mine i m’s engagemen in he CSR. The policies and measu es and epo ing ini ia i es can be ea ed as he d i ing o ces o CSR. The li e a u e o “ou come” ca ego y examines he consequences o CSR. These s udies a e add essing he assessmen o CSR impac s. The hi d g oup o s udies analyse he “p ocess” o CSR decision making o implemen a ion and how a ious s akeholde s espond o he co po a e social ac i i ies (Wang e al., 2016). This g oup o li e a u e ies o i nd he linkages be ween he e ec i eness o policies and epo ing ini ia i es and s akeholde s’ engagemen and help o pu sue sus ainable de elopmen goals by esponsible companies. EM_1_2019.indd 84EM_1_2019.indd 84 8.3.2019 9:16:088.3.2019 9:16:08 85 1, XXII, 2019 Business Adminis a ion and Managemen The e is a clea end o concep ual shi o he a icles in he “ou come” g oup om i nancial ou comes o non- i nancial, social and o ganiza ional ou comes. Schola s end o be mo e in e es ed in a b oade cons ual o he ole o businesses and co po a ions in he socie y as well as p o iding he mechanisms (likely media ing ac o s), h ough which he CSR is linked o he i nancial pe o mance. 2. Policies and Repo ing Ini ia i es o P omo e he CSR Today, Eu ope is ega ded as a leade in he CSR and CSR policies. Go e nmen s a e ying o p omo e CSR policies because CSR p ac ices can help o mee he sus ainable de elopmen policy objec i es o he coun y on a olun a y basis. This mo i a ion is linked o he policy objec i es ha a e ela ed o sus ainable de elopmen goals and en i onmen al p o ec ion as well as o o eign policy such as de elopmen assis ance and aid. The e o e, mos go e nmen s in he Eu opean Union (EU) ha e an inc easingly ac i e ole in p omo ing CSR ac i i ies. The policies o p omo e CSR can be g ouped in o ou main a eas: 1. Raising awa eness o companies and gene al public abou he CSR and building i ms’ capaci ies o implemen CSR; 2. Imp o ing he disclosu e and anspa ency o companies CSR; 3. Fos e ing he Socially Responsible In es men (SRI); 4. Leading in he CSR ac i i ies by p o iding example such as public p ocu emen o applying SRI in go e nmen al unds, applying CSR in public companies e c. All public policies o p omo e he CSR can be g ouped in o 4 clus e s:  Legal ins umen s ha a e p esc ibing he desi ed choices and ac ions by making use o he s a e’s legisla i e powe s such as laws, di ec i es and egula ions;  Economic ins umen s ha p o ide ini ia i es o in l uence beha iou wi h i nancial and ma ke measu es, such as awa ds, axes, ax allowances and subsidies;  In o ma ional ins umen s a e based on pe suasion by p o iding ele an in o ma ion, o example, educa ion, aining in o ma ion campaigns and websi e pla o ms;  Ne wo king ins umen s ha a e based on he ne wo king o s akeholde s, assuming ha di e en s akeholde s a e in e es ed in joined e o s o achie e he sha ed objec i es, like s akeholde o ums, nego ia ed olun a y ag eemen s and public-p i a e pa ne ships e c. Public policies and measu es o p omo e he CSR and a numbe o ini ia i es in he g oup o he EU coun ies a e p o ided in Tab. 1. The Eu opean Union Membe S a es and associa ed coun ies can be alloca ed in o 5 g oups based on hei geog aphical and cul u al ai s and hei wel a e models: Scandina ian (No way, Sweden, Finland, Iceland), Anglo-Saxon (The UK, I eland), Medi e anean (Spain, I aly, Po ugal, G eece, Mal a, Cyp us), Con inen al (Ge many, Aus ia, Belgium, Swi ze land, F ance, Luxembu g) and T ansi ional (Li huania, La ia, Es onia, Bulga ia, Romania, Hunga y, Slo enia, Slo akia, The Czech Republic) (S eu e e al., 2012). The numbe o policy ins umen s o p omo e CSR is p o ided o he g oup o coun ies. As one can no ice om Tab. 1, Anglo-Saxon coun ies and Scandina ian coun ies a e leade s in he public policies ha a e a ge ing CSR. In many EU membe s a es, he olun a y e o s by i ms o measu e and epo on CSR o sus ainabili y pe o mance we e ollowed by a ious numbe s o manda o y disclosu e equi emen s, which a e implemen ed by he go e nmen al egula ion. This is especially he case o he EU coun ies, whe e new epo ing equi emen s ha e been in oduced by he legal ac s laws such as i ms’ laws, accoun ing laws and o he ins umen s ha add ess he epo ing equi emen s and CSR disclosu e equi emen s. Cu en ly, he e a e almos 400 sus ainabili y epo ing ins umen s ha a e implemen ed all a ound he wo ld. These epo ing ini ia i es can be ea ed as ins umen s o p omo e CSR. The s udy (KPMG, 2016) ound o e 400 ins umen s in 64 wo ld coun ies. These ends indica e he inc easing commi men s o coun ies and i ms o p omo e high anspa ency and sound accoun abili y. Howe e , a la ge numbe o di e en CSR disclosu e ins umen s make a big p oblem o epo ing companies and go e nmen s. The ha moniza ion o CSR epo ing ins umen s is a majo goal o he in e na ional ins i u ions, policy make s and egula o s, s ock exchange ope a o s, indus ial union and associa ions, EM_1_2019.indd 85EM_1_2019.indd 85 8.3.2019 9:16:088.3.2019 9:16:08 86 2019, XXII, 1 Business Adminis a ion and Managemen s anda d se ing au ho i ies and schola s ha a e engaged in de elopmen and c ea ion o ad anced epo ing ools. In 2013, 180 CSR epo ing ins umen s we e iden i i ed in 44 wo ld coun ies (KPMG, 2013). The e is he d ama ic g ow h o he CSR epo ing ins umen s in Eu ope, Asia Paci i c and La in Ame ica. Tab. 2 p esen s he ends in CSR epo ing a ound he wo ld. S a e egula o s inc easingly encou age i ms o disclose in o ma ion ha is linked o he CSR p ac ices in hei annual epo s. A ound 70% o he o al CSR epo ing ins umen s in 2016 we e manda o y. A ound 30% o he CSR epo ing ins umen s we e olun a y (KPMG, 2016). In mos coun ies, CSR epo ing ins umen s a e ocused mainly on la ge companies and s a e-owned en e p ises. The la ges companies in he s ock exchange and companies ope a ing in high-impac sec o s a e equi ed o disclose non- i nancial in o ma ion, Public policies o p omo e CSR Legal Economic In o ma i e Ne wo king Laws and o he legal ac s ha indica e commi men s o CSR and epo ing equi emen s o he non- i nancial in o ma ion disclosu e Subsidies ela ed o CSR ac i i ies, ax allowances and b eaks o co po a e cha i y ac i i ies Resea ch and educa ional ac i i ies, i.e., in eg a ion o CSR in he cu icula o seconda y schools, uni e si ies, wo kshops, aining e c. Ne wo ks and s a egic pa ne ship on CSR, SRI o olun a y ag eemen , public p ocu emen ne wo ks Legal ac s on CSR epo ing o Disclosu e laws o pension unds e c. Awa ds o he bes CSR epo s o he bes CSR company awa ds o “naming- and-shaming” wi h blacklis s Guidelines on CSR epo ing o In o ma ion on CSR epo ing CSR con ac poin s, Mul i-s akeholde o ums: GRI, Global Compac e c. Laws ha p ohibi ce ain in es men s o Laws on SRI in go e nmen al and pension unds e c. Tax incen i es o ene gy sa ing, pollu ion educ ion, enewables e c. In o ma ion on SRI: b ochu es o SRI guidelines and s anda ds Cen es, pla o ms, con ac poin s and p og ammes o CSR and ne wo king Go e nmen al Ac ion plans on CSR P oduc o company labels Mul i-s akeholde ini ia i es, including he de elopmen o managemen o epo ing ini ia i es and ools such EMAS, SA800, GRI e c. Scandina ian 5 3 5 7 Con inen al 5 2 4 9 Anglo-Saxon 7 4 7 10 Medi e anean 3 1 4 4 T ansi ional 2 2 1 6 Sou ce: au ho s’ own compila ion based on S eu e (2010), S eu e e al. (2012), Pimen el e al. (2016), Halkos and Skouloudis (2016), Alba eda (2007) Tab. 1: Public policies o p omo e CSR EM_1_2019.indd 86EM_1_2019.indd 86 8.3.2019 9:16:088.3.2019 9:16:08 87 1, XXII, 2019 Business Adminis a ion and Managemen as hese i ms ha e i nancial and human esou ces o such epo ing p ac ices, while smalle companies do no ha e he capaci y o epo . The main policy ins umen s ha a e equi ing sus ainabili y epo ing a e go e nmen al egula ion, codes o conduc , a ious in o ma i e and some economic measu es, s anda ds and o he public policies such as go e nmen ac ion plans, s a egies and na ional schemes. Mo eo e , i ms a e equi ed o demons a e esponsible ax s a egies and ensu e he paymen o axes. A sus ainabili y a ing such as he Dow Jones Sus ainabili y Index is d i ing he esponsible axa ion policies in o he e alua ion c i e ia o he SRI as well. O e 60 pe cen o he ins umen s ha we e iden i i ed in 2016 co e he epo ing on speci i c en i onmen al o social opics. The emaining ins umen s encou age he epo ing on gene al sus ainabili y in o ma ion. The numbe o ins umen s on social in o ma ion disclosu e almos doubled since 2013. A ound hal o he epo ing ins umen s on social issues a e in he EU. Se e al EU membe s a es in esponse o he EU’s CSR S a egy ha e implemen ed na ional ac ion plans o add ess he CSR, o example, Spain has adop ed he S a egy o Co po a e Social Responsibili y 2014-2020. O he coun ies ha e de eloped na ional CSR ac ion plans (F ance, Swi ze land, No way). The EU has in oduced manda o y equi emen s o epo ing on speci i c en i onmen al o social issues as well as on wide non- i nancial pe o mance indica o s (policies, isks and ou comes ha a e ela ed o en i onmen , social issues, espec o human igh s, an i-co up ion issues, di e si y e c.). The e o e, he numbe o epo ing ins umen s has con inued o g ow signi i can ly since 2013 in he EU, as in 2016, 155 ins umen s we e iden i i ed compa ed o 80 in 2013. Some o hem a e linked o he ansposi ion o he EU Non-Financial Repo ing Di ec i e. New EU epo ing ins umen s we e linked o he GHG emissions ading. The e a e many CSR epo ing ins umen s and CSR disclosu e ini ia i es; howe e , i is impo an o assess he impac , con ex and d i e s behind each ins umen and answe he ques ion how e ec i e a e hese ins umen s and o wha ex en does he CSR epo ing ini ia i es b ing he wo ld nea e o he sus ainable wo ld, p ojec ed by he 2030 Agenda o Sus ainable De elopmen . 3. Assessmen o CSR Impac s The e a e se e al s udies ha a e dealing wi h he assessmen o CSR impac s (Gjølbe g, 2009; Hame , 2005; Foo e, Ga ney, & E ans, 2010; Jankalo a, 2013; Jankalo a, 2016). The main CSR assessmen app oaches a e gene alized in Tab. 3. As one can see om Tab. 3, some CSR assessmen ools a e cons uc ed o epo ing pu poses, some a e mo e linked wi h he assessmen o companies’ ac i i ies, and some a e cons uc ed o he sel -assessmen o companies. The e a e ools ha can be used o all hese pu poses, as SA8000 o EMAS. The e a e business excellence models as well ha a e o en applied as amewo ks o he assessmen o CSR p ac ices in i ms. The mos popula and well-known models a e he EFQM Excellence Model ha was elabo a ed in Eu ope and The Malcolm Bald ige Model o Pe o mance Excellence ha was de eloped 2006 2010 2013 2016 CSR epo ing Ins umen s Manda o y CSR epo ing ins umen s 35 58% 94 62% 130 72% 248 65% Volun a y CSR epo ing ins umen s 25 42% 57 38% 50 28% 135 35% To al CSR epo ing ins umen s 60 151 180 383 Coun ies 19 32 44 71 Sou ce: KPMG (2016; 2013) Tab. 2: T ends in he CSR epo ing and disclosu e EM_1_2019.indd 87EM_1_2019.indd 87 8.3.2019 9:16:098.3.2019 9:16:09 88 2019, XXII, 1 Business Adminis a ion and Managemen in he USA. Jankalo á and Radosla (2017) ha e sys ema ized he CSR assessmen ools and me hods and ound ha he Malcolm Bald ige Model o Pe o mance Excellence is mo e sui able o he assessmen o CSR in he i m as he EFQM Excellence Model (Foo e, Ga ney, & E ans, 2010). The independen agencies (Dow Jones om Swi ze land, FTSE om he UK, Global 100 in he US e c.) deal wi h he a ing o he CSR o i ms. They ha e c ea ed hei own indexes o measu e he CSR pe o mance o i ms (Hamme , 2005). A decision o include i ms in he index calcula ion depends on he i ms’ ul i lmen o speci i c c i e ia ha is se by he independen agencies. The mos popula and well-known in e na ional indexes a e Dow Jones Sus ainabili y Index, FTSE4Good Index, E hibel Index and MSCI Wo ld ESG Index. The Dow Jones Sus ainabili y Wo ld Enla ged Index (DJSI Wo ld Enla ged) assesses he pe o mance o he op 20% o he wo ld la ges 2,500 i ms in he S&P Global B oad Ma ke Index in e ms o CSR. I is one o he mos impo an wo ld indices o socially esponsible in es ing (SRI). The FTSE4Good Global Index was de eloped by he FTSE In e na ional and E hical Resea ch Se ices (EIRIS). The aim o he index is o assess he pe o mance o i ms a ound he wo ld ha mee globally ecognised CSR s anda ds. I is as well among he mos impo an indexes o socially esponsible in es ing. The E hibel Sus ainabili y Index (ESI) Excellence Global collec s he bes -in-class i ms in ela ion o he CSR ac oss a ious sec o s and egions in Eu ope, No h Ame ica and Asia Paci i c. I is cons uc ed as a ee- l oa weigh ed index ha is combining he CSR assessmen alues wi h he sec o weigh s on he S&P Global 1200. CSR Assessmen App oach o Ins umen Tool o epo ing Tool o sel - assess men Tool o assessmen o companies’ ac i i ies Wo ld’s Mos E hical Companies + Global 100 Mos Sus ainable Co po a ions + OHSAS 18001 + + + Social Accoun abili y – SA 8000 + + + ISO 14000 + + + EMAS + + + KPMG Su ey + GHG P o ocol + + + Ca bon Disclosu e P ojec (CDP) + + + Global Repo ing Ini ia i e (GRI) + + Wo ld Sus ainable De elopmen Council o Business ++ Dow Jones Sus ainabili y Index + FTSE4good Index + + The ECPI Global ESG Alpha Equi y Index + + MSCI Wo ld ESG Index + + ECPI Global ESG Alpha Equi y Index + + Sou ce: au ho s’ own compila ion based on Alba eda (2007), Pimen el e al. (2016), Halkos and Skouloudis (2016) Tab. 3: CSR assessmen app oaches EM_1_2019.indd 88EM_1_2019.indd 88 8.3.2019 9:16:098.3.2019 9:16:09 89 1, XXII, 2019 Business Adminis a ion and Managemen MSCI Wo ld ESG Index consis s o la ge and mid-cap i ms and p o ides he assessmen o i ms, acco ding o high en i onmen al, social and go e nance pe o mance c i e ia ha is ela i e o hei sec o pee s. The Wo ld’s Mos E hical (WME) companies’ designa ion was c ea ed by he E hisphe e Ins i u e. I co e s he wo ld i ms by p omo ing e hical s anda ds and shaping he u u e indus y s anda ds. The assessmen and selec ion p ocedu es o i ms a e based on he p op ie a y a ing sys em. The Global 100 assesses he Mos Sus ainable Co po a ions in he Wo ld. This sus ainabili y equi y index is de eloped by he Co po a e Knigh s ad iso y g oup. KPMG’S In e na ional Su ey o Co po a e Responsibili y Repo ing is an analysis o co po a e non i nancial epo ing o i ms and includes he assessmen o CSR disclosu e p ac ices among he 100 la ges i ms in he selec ed coun ies. The main aim o he sus ainabili y indexes is o measu e he pe o mance o companies ha mee ce ain CSR c i e ia and p o ide in es o s wi h SRI oppo uni ies. These indexes ha e a posi i e impac on he socially and en i onmen ally esponsible in es men s all a ound he wo ld. Some independen ins i u ions ha a e issuing indexes as well wan o inc ease he awa eness abou he CSR and SRI and p omo e socially and en i onmen ally esponsible beha iou . Howe e , he e is a big p oblem wi h hese indexes due o he lack o he objec i i y (Jankalo a, 2016). The collec ed da a canno be eliable as i comes om pe sonal in e iews, websi es, annual epo s e c. Despi e he e i i ca ion by he independen ins i u ion, hese epo s a e subjec i e and lack anspa ency. The independen a ing agencies apply hei own no disclosed me hodology because i is hei expe ise, and hey ha e in es ed big esou ces in i s c ea ion. The majo p oblem wi h indexes is ha hey a e di e en in he analysed and applied indica o s o he applied CSR assessmen and scales, and i is e y di i cul o compa e hese indexes. The incompa abili y o indexes as well causes he a ie y o de i ni ions o CSR (Jankalo a, 2016). Fo he CSR epo ing o i ms, he mos impo an a e hese s anda ds: Global Repo ing Ini ia i e, Wo ld Business o Sus ainable De elopmen Repo ing P ojec , UN Global Compac , ISO 14001, SA 8000, OHSAS 18001, Ca bon Disclosu e P ojec , GHG p o ocol e c. The GRI Sus ainabili y Repo ing Guidelines a e he mos widely used CSR and sus ainabili y epo ing amewo k in he wo ld, which allow p i a e i ms and public o ganiza ions o epo on hei CSR pe o mance, based on he economic, en i onmen al, social and go e nance c i e ia. The GRI Guidelines p esen a se o impo an issues and p inciples, s anda d disclosu es and implemen a ion manuals o de eloping he CSR epo s. The Wo ld Business Council o Sus ainable De elopmen (WBCSD) is a global associa ion o i ms ha is seeking o p omo e s a egic issues linked o he CSR and sus ainabili y. I p esen s a well-de eloped pla o m o companies o ne wo k, sha e bes p ac ices and p oblema ic issues. The Global Compac was de eloped by he Uni ed Na ions as a s a egic ini ia i e o i ms o implemen he en uni e sally accep ed p inciples on human igh s p o ec ion, labou s anda ds, en i onmen al p o ec ion and anspa ency. Ca bon Disclosu e P ojec (CDP) is an in e na ional o ganiza ion ha is coope a ing wi h he ma ke o ces in o de o encou age companies o measu e, manage and disclose impo an en i onmen al in o ma ion ha is linked o he GHG (g eenhouse gas) emissions and ake ac ion o mi iga e clima e change. The GHG P o ocol is an accoun ing ool o he assessmen o GHG emissions by encou aging con ibu ion o mi iga e clima e change. I p esen s he GHG emission accoun ing amewo k o a ious p og ams a ound he wo ld. ISO 14001 is an en i onmen al managemen sys em s anda d ha has been de eloped by he In e na ional O ganiza ion o S anda diza ion (ISO). I p esen s a amewo k o a p i a e company o public o ganiza ion in se ing up an en i onmen al managemen sys em and moni o ing i s pe o mance. The SA 8000 s anda d is an audi able ce i i ca ion s anda d. I imposes equi emen s o human igh s p o ec ion, implemen a ion o socially accep able p ac ices in he wo kplace o wo ke s and hei amilies. SA 8000 was de eloped by he Social Accoun abili y In e na ional (SAI) by applying he same app oach as o ISO 14001. EM_1_2019.indd 89EM_1_2019.indd 89 8.3.2019 9:16:098.3.2019 9:16:09 90 2019, XXII, 1 Business Adminis a ion and Managemen OHSAS 18001 is an occupa ional heal h and sa e y managemen sys em s anda d ha has been de eloped by he Occupa ional Heal h and Sa e y Ad iso y Se ices (OHSAS) P ojec G oup. The s anda d aims o help o ganiza ions o manage he occupa ional heal h and sa e y. As he e a e many a ious CSR assessmen ools, i is e y di i cul o assess he numbe o socially esponsible companies in speci i c coun ies o all o e he wo ld, and his is an impo an p oblem o de i ning CSR pene a ion and assessing he impac o public policies by aiming a he p omo ion o CSR. The e we e se e al a emp s o de elop a mul idimensional CSR index o imp o e he knowledge o global CSR ends and de elopmen s (Gjolbe g, 2009; Halkos & Skouloudis, 2016). Gjolbe g’s index was based on nine in e na ional CSR a iables ha a e linked o socially esponsible in es men a ings, subsc ip ions o global CSR ini ia i es, CSR accoun ing and epo ing schemes and en i onmen al o social managemen sys em s anda ds (Halkos & Skouloudis, 2016). Recen ly, a CSR index ha has been de eloped by Gjolbe g in 2009 was used and ex ended by Halkos and Skouloudis (2016) in o de o ob ain na ional CSR sco es. While Gjolbe g (2009) had applied he calcula ion o mula o 20 OECD coun ies, Halkos and Skouloudis assessed he da a ela ing o 86 coun ies, selec ing he yea 2012 as he e e ence pe iod and as a iables using 16 in e na ional CSR ini ia i es, en i onmen al and social s anda ds, CSR ankings and e hical in es men s ock exchange indices. The a iables ha we e included in Halkos and Skoloudis (2016) CSR index a e p esen ed in Tab. 5 whe e coun ies a e anked in e ms o CSR pene a ion based on he CSR index. CSR Ra ing Coun y GRI ISO 14000 Global Compac SA 8000 WBCSDE CSR Index 1 Swi ze land 110 2,856 153 5 9 20.64 2 Sweden 196 9,486 296 1 2 19.50 3 Finland 162 1,480 79 1 5 18.99 4 Denma k 66 1,128 370 4 4 12.59 5 The UK 283 17,559 473 1 7 9.64 6 The Ne he lands 216 2,739 144 4 10 9.27 7 No way 88 1,319 24 1 8 8.04 8 Aus alia 87 3,938 151 - 6 6.17 9 Spain 154 13,053 1,483 14 3 4.21 10 F ance 177 6,318 78 2 9 2.58 11 Po ugal 17 5,555 63 33 4 2.30 12 Singapo e 56 1,254 81 - - 0.77 13 Japan 205 23,901 290 2 27 -0.25 14 Canada 128 1,172 78 - 5 -0.76 15 Belgium 135 1,063 86 2 1 -1.22 16 I aly 145 26,655 27 1,309 4 -1.56 17 Ge many 329 12,176 480 11 11 -3.93 18 Hong Kong 1,023 4 - -5.40 19 Iceland 2 90 24 - - -5.70 20 The USA 353 5,251 119 1 38 -11.02 Sou ce: au ho s’ own compila ion based on Halkos and Skouloudis (2016) Tab. 4: Rankings o op 20 coun ies based on he CSR index and numbe o CSR en e p ises in 2017 EM_1_2019.indd 90EM_1_2019.indd 90 8.3.2019 9:16:098.3.2019 9:16:09 97 1, XXII, 2019 Business Adminis a ion and Managemen P ice, J. M., & Sun, W. (2017). Doing Good and Doing Bad: The Impac o Co po a e Social Responsibili y and I esponsibili y on Fi m Pe o mance. Jou nal o Business Resea ch, 80, 82-97. h ps://doi.o g/10.1016/j. jbus es.2017.07.007. Pimen el, L., B anca, A., & Ca alao-Lopes, M. (2016). In e na ional Compa isons o Co po a e Social Responsibili y. In e na ional Jou nal o Economics & Managemen Sciences, 5(2). h ps://dx.doi.o g/10.4172/2162-6359.1000327. Se aes, H., & Tamayo, A. (2013). The Impac o Co po a e Social Responsibili y on Fi m Value: The Role o Cus ome Awa eness. Managemen Science, 59, 1045-1061. h ps://doi.o g/10.1287/mnsc.1120.1630. S eu e , R. (2010). The Role o Go e nmen s in Co po a e Social Responsibili y: Cha ac e ising Public Policies on CSR in Eu ope. Policy Sciences, 43(1), 49-72. h ps://doi.o g/10.1007/s11077-009-9084-4. S eu e , R., Ma inuzzi, A., & Ma gula, S. (2012). Public Policies on CSR in Eu ope: Themes, Ins umen s, and Regional Di e ences. Co po a e Social Responsibili y and En i onmen Managemen , 19(4), 206-227. h ps://doi.o g/10.1002/cs .264. Tu ke , D. (2009). Measu ing Co po a e Social Responsibili y: A Scale De elopmen S udy. Jou nal o Business E hics, 85(4), 411-427. h ps://doi.o g/10.1007/s10551-008- 9780-6. Va ada ajan, R., & Kaul, R. (2017). Doing Well by Doing Good Inno a ions: Alle ia ion o Social P oblems in Eme ging Ma ke s h ough Co po a e Social Inno a ions. Jou nal o Business Resea ch, 86, 225-233. h ps://doi. o g/10.1016/j.jbus es.2017.03.017. Wang, H., Tong, L., Takeuchi, R., & Geo ge, G. (2016). Co po a e Social Responsibili y: An O e iew and New Resea ch Di ec ions. Academy o Managemen Jou nal, 59, 534-544. h ps://dx.doi.o g/10.5465/amj.2016.5001. Yoo, D., & Lee, J. (2018). The E ec s o Co po a e Social Responsibili y (CSR) Fi and CSR Consis ency on Company E alua ion: The Role o CSR Suppo . Sus ainabili y, 10, 29-56. h ps://doi.o g/10.3390/su10082956. Jin ao Lu School o Economics and Managemen Taiyuan Uni e si y o Science and Technology and Resea ch Cen e o Co po a e Social Responsibili y Taiyuan Uni e si y o Science and Technology P.R.China [email p o ec ed] Licheng Ren School o Economics and Managemen Taiyuan Uni e si y o Science and Technology and Resea ch Cen e o Co po a e Social Responsibili y Taiyuan Uni e si y o Science and Technology P.R.China [email p o ec ed] Wen ang Lin School o Economics and Managemen Taiyuan Uni e si y o Science and Technology P.R.China [email p o ec ed] Yi an He School o Economics and Managemen Taiyuan Uni e si y o Science and Technology P.R.China [email p o ec ed] Jus as S eimikis Li huanian Ins i u e o Ag a ian Economics Di ision o Fa ms and En e p ises Economics Li huania [email p o ec ed] EM_1_2019.indd 97EM_1_2019.indd 97 8.3.2019 9:16:118.3.2019 9:16:11 98 2019, XXII, 1 Business Adminis a ion and Managemen Abs ac POLICIES TO PROMOTE CORPORATE SOCIAL RESPONSIBILITY (CSR) AND ASSESSMENT OF CSR IMPACTS Jin ao Lu, Licheng Ren, Wen ang Lin, Yi an He, Jus as S eimikis The Co po a e social esponsibili y (CSR) concep is linked o he company’s esponsibili y o i s impac on he socie y. The CSR is impo an o sus ainabili y, compe i i eness and inno a ion o he economy o each coun y and is igh ly linked o he success in app oaching Sus ainable De elopmen Goals (SDG) by he wo ld coun ies. SDGs p o ide many bene i s and oppo uni ies o companies and in e ms o isk managemen , inc ease he access o capi al, imp o emen o s akeholde s’ ela ionships e c. The li e a u e on CSR has shi ed om analysing he ques ions on whe he companies should engage in socie al challenges o whe he and how coun ies and people bene i om hese in e en ions in add essing sus ainable de elopmen challenges, such as po e y, educa ion, heal h, ene gy and en i onmen . The ecen scien i i c discussion on he assessmen o CSR impac s p o ides con adic o y esul s and i ndings. The e o e, his pape aims o shed mo e ligh on his issue and p o ide clea policy ecommenda ions based on he conduc ed analysis. The pape analyses and compa es he main policies ha a e aiming a he p omo ion o CSR, including epo ing ini ia i es and equi emen s. The measu es o assess he impac o CSR a e discussed as well based on a ious epo ing incen i es ha a e guiding companies on how o assess and ac ually measu e he e ec s o hei ac i i ies by se ing quan i a i e indica o s. The dynamics o socially esponsible companies and sus ainabili y epo ing ini ia i es a e p o ided by indica ing he e ec i eness o he implemen ed policies and o he ini ia i es o p omo e he CSR; howe e ; he main emphasis o he pape is he impac o CSR on he socie al challenges such as Sus ainable De elopmen Goals and in eg a ion o SDGs in he CSR assessmen . Key Wo ds: Co po a e social esponsibili y, sus ainable de elopmen goals, policies o p omo e CSR, impac s o CSR. JEL Classi i ca ion: M14, Q56. DOI: 10.15240/ ul/001/2019-1-006 EM_1_2019.indd 98EM_1_2019.indd 98 8.3.2019 9:16:118.3.2019 9:16:11