Extending the Measurement of Composite Indicators Towards a Non-convex Approach: Corporate Social Responsibility for the Food and Beverage Manufacturing Industry

Abstract

This paper computes composite indicators of corporate social responsibility (CSR) from an efficiency perspective for food and beverage manufacturing firms in various world regions over the period from 2011 to 2018. From a methodological perspective, we extend the measurement of composite indicators within data envelopment analysis, allowing for the non-convexities of the production set and for the appropriate comparison of indicators between groups of firms. From an empirical point of view, we contribute by comparing the efficiency in CSR practices of food and beverage companies across regions of Europe, the United States and Canada, and Asia Pacific. The study reveals differences in CSR efficiency between food and beverage firms in the regions considered, with USA and Canadian firms tending to perform best, followed by European firms, and Asian Pacific firms achieving the worst efficiency results. The study also shows that regional catching up in performance occurred over the analyzed period.