A Multivariate Proposal for a National Corporate Social Responsibility Practices Index (NCSRPI) for International Settings

Abstract

This paper proposes a National Corporate Social Responsibility Practices Index (NCSRPI) that determines the level of penetration of corporate social responsibility (CSR) in 29 different countries, considering each nation as a set of institutional factors. The NCSRPI is built through a statistical aggregation process of 22 CSR practices categorized into the social and environmental dimensions that are individually observed for each company. The composite indicator summarizes and synthesizes the entire business reality at the country level, providing pertinent information to evaluate factors related to CSR performance and a vision of national commitment to company sustainability. The results provided by the NCSRPI show that companies around the world adopt similar patterns of behaviour in relation to their CSR practices, but with different levels of evolution. Thus, European countries present themselves as the leaders in issues of social responsibility, the countries of America give preference to ethical issues, and countries belonging to the Asian continent, specifically to Southeast Asia, are shown to be the most laggardly in this regard. In conclusion, the institutional environment in each country establishes for firms a series of opportunities and barriers in their decision to adopt or improve their CSR practices.