Measurement of corporate social performance: an Indian perspective

Purpose - This paper aims to: design a comprehensive, review-based and statistically tested corporate social responsibility disclosure (CSRD) index; measure item-wise and theme-wise the social performance of the top 82 companies in India; and investigate item-wise and theme-wise the variations in CSRD. Design/methodology/approach - The paper presents an empirical study of CSRD in 2009-2010, using content analysis, Cronbach's a, the Kolmogorov-Smirnov and Shapiro-Wilk tests of normality and a six point scale (0-5), mean, skewness, kurtosis, and Levene's, Kruskal-Wallis's and Mood's median tests for analysis and interpretation. Findings - CSRD shows less satisfactory social performance, mainly narrative, and varies significantly among items and themes. Community development, with a mean score of 14.30, is the most disclosed theme, followed by HR, with a score of 11.20. The human element is the center of social performance in India. More than equal focus should be given to the environment and to emissions, which impact the greater interests of the world. Some burning global issues like water usage, alternative sources of energy, product safety and innovation have not received adequate attention. Research limitations/implications - The study offers ample scope for the further studies as each and every theme and item considered in the model/index requires individual focus to serve the future generations of mankind. Longitudinal/transnational studies in the area of CSR could be carried out to set the scene for further studies. Practical implications - The paper recommends mandatory CSR norms leading to improved disclosure, the sharing of innovative knowledge, cost reductions and enhanced effectiveness in managing scarce resources. Originality/value - The paper evaluates social performance in the economic, social, religious environment and highlights the emerging philanthropic attitude. The paper improves an existing model by incorporating an emerging dimension, i.e. "Emissions of carbon and other harmful gases''. The CSEEE index designed here is highly appropriate for developing economies like India. The paper measures CSRD using six-point scales for the first time.