How do we measure corporate social responsibility? Sir Andrew Likierman, Professor of Management Practice in Accounting and Acting Dean at
Likierman has four ways to approach such measurement:
- First, companies must link CSR goals to tangible objectives that can be met, such as the amount of money invested in internal or social programs, or by financial performance.
- Second, measures must be actionable and linked to outcomes. They should be broken down into informative levels that can be measured against external, established measures and successes.
- Third, measurements should be based on credible data. Measures should be clear, and based over a long period of time to ensure transparency.
- Fourth, recognition of measurement limitations. A good measurement framework is essential for credible measurements, but it isn't always sufficient to capture the intangible value of CSR.