Performance evaluation of corporate social responsibility according to the logic of ISO 26000 (guidance on social responsibility) standard

Abstract

Continuous measurement and evaluation of corporate performance is necessary; it can be the key to success. These days measuring and evaluating processes are promoted by different management tools and methods, which are known from the field of performance management. The situation is the same in the case of environmental performance; there are opportunities and solutions to evaluate environmental performance and to measure the results of environmental activity. It is important to mention that corporate social responsibility (CSR) can be rated to corporate performance, a fact supported by experts. There is a strong relation between CSR and financial performance. Additionally, CSR can help achieve competitiveness in the long-run. However there is some uncertainty regarding how the results of CSR activities appear in the measuring and evaluating processes, tools and methods that is, how CSR activity can be measured and evaluated. The aim of this paper is to examine the model of CSR, provide an introduction to its principles, the two fundamental practices, and the core subjects of social responsibility, according to ISO 26000 international standard (ISO 26000:2010(E) Guidance on Social Responsibility), which was finalised in 2010. After that introduction, this paper makes a proposal for performance evaluation in terms of corporate social responsibility, according to the logic of the ISO 26000 standard. It also examines the potential relationship between existing methods of performance evaluation, environmental performance evaluation, and CSR performance evaluation. Keywords: Corporate Social Responsibility, ISO 26000