Introducing Social Contribution Value Per Share (Scvps) as a Measurement of CSR Performance

Abstract

This study focuses on the evaluation of CSR performance by reviewing and comparing several major Measurements of Social Performances (MSPs) in developed countries and mainland China based on their merits and concerns. Most importantly, this study advocates the use of a quantitative measurement – social contribution value per share (SCVPS) due to its simplicity, robustness and comparative metrics. This paper undertakes an extensive literature review as well as secondary or primary evidences of methodologies from selected MSPs and the criteria they rely upon to assess a firm’s CSR performance. The study highlights several major limitations of current MSPs (such as the difficulty in making comparisons across MSPs, lack of transparency in constructing them, potential misinterpretations as well as the exclusion of risky industries) through a comparison with SCVPS which was developed by the Shanghai Stock Exchange in China. This study argues that SCVPS is a preferable MSP because of its simple calculation method, transparent evaluation process, comparability as well as high accessibility among potential investors. In addition, the findings of this study shed light on the importance of standardized, comparative and transparent MSPs for regulators and market participants. Last but not least, this study points out some possible future research avenues utilizing SCVPS for listed enterprises in China as well as those in other regions.