Measuring Corporate Social Responsibility – Choosing the Right Measurement Approach
DOI:
https://doi.org/10.5377/reice.v12i24.20095Keywords:
CSR measurement, content analysis, reputational indices, questionnaire-based surveys, one-dimensional index.Abstract
This study aims to explore the Corporate Social Responsibility (CSR) measurement approaches and suggest a specific approach to measure the CSR activities of listed companies at the Muscat Stock Exchange (MSX). Measuring Corporate Social Responsibility (CSR) contributed significantly to CSR disclosure and the performance of businesses in building a positive image in society. Choosing the right method to measure CSR is challenging for businesses, especially when external indexes are available. This research paper is a conceptual paper aiming to explore the different CSR measurement approaches and choose the right measurement approach that suits Omani businesses. The most common approaches to measure CSR are content analysis, reputational indices, questionnaire-based surveys, and one-dimensional measures. There are different approaches and indices that measure the CSR performance of businesses, but those are general and do not apply to all economies. Thus, a country-specific measurement approach is required to accurately measure all aspects of CSR performance. Therefore, it is suggested that a CSR index be constructed based on the quantitative content analysis method. The study proposed to develop a CSR index based on a quantitative content analysis method, which will help measure the CSR disclosure of all listed companies at MSX. This study provides valuable insight to researchers, businesses, regulators, policymakers, and society as a whole on CSR measurement approaches that fit Oman's economy.
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