Managerial mindsets and performance measurement systems of CSR‐related intangibles

Abstract

PurposeThe purpose of this one‐company case study is to investigate the possible use of causal maps in the performance management and measurement of corporate social responsibility (CSR) related intangibles.Design/methodology/approachIn order to test the suitability of the chosen model, a combined research approach was selected. The combination of inductive and deductive approaches resulted in the most advantageous in order to test the research hypotheses. The pharmaceutical industry was targeted as a noteworthy case study for CSR investment. Novo Nordisk, a leading firm within the pharmaceutical industry, was chosen due to its outstanding corporate social performance (Dow Jones sustainability index STOXX and the Ethibel Sustainability Index).FindingsThe use of causal maps at Novo Nordisk is expected to improve the selection of indicators for the company's performance measurement system, so that a financial evaluation of the returns of investments aimed at increasing the value of CRS related intangibles can be made.Practical implicationsThe use of causal maps aims to systematically internalise the positive financial effect of investment into CSR related intangibles. In this way the quality of existing performance measurement systems of companies are expected to improve.Originality/valueThis research contributes to CSR and performance measurement literature by analysing the use of causal maps in order to define indicators for CSR related intangibles, to be included in the company's multidimensional performance measurement models.