FINANCIAL PERFORMANCE, DIVERSITY AND CSR

How far and why are financial performance measures useful in evaluating the outcomes of diversity and CSR initiatives?

How far and why are financial performance measures useful in evaluating the outcomes of diversity and CSR initiatives?

Introduction

Corporate social responsibility has grown exponentially in the past decade. More than half of the Fortune 1000 companies issued corporate social responsibility (CSR) report. A larger number of companies are more than ever a serious effort to define, integrate into all aspects of their business time to participate in social responsibility. A growing number of shareholders, analysts, regulators, activists, trade unions, employees, community organizations and the media are asking the company responsible for an ever-changing set of social responsibility. (House, 2004, 19)

The terms “diversity and inclusion” and “social responsibility” were used together primarily by environmental organizations as they grappled with legitimizing equity as part of the triple bottom line. This measure of the sustainable use of tracking financial performance is in addition to the traditional ecological and social benefits. However, sustainable development for more than the environment, many organizations is pursuing the introduction of the further part of its business strategy, diversity and inclusive social responsibility initiatives. This social responsibility, diversity and inclusion into the development to how diversity and inclusion is critical to an organization's core business strategy of sustainable development awareness. (Merchant, 2008, 197)

Mellahi, frynas and finlay (2005: 59) describe corporate social responsibility "further action seems to some social good, beyond the company, which is the interest of the law." It is noteworthy that not only conforms to corporate social responsibility law. In addition, under Frooman (1997:227), what would be a manifestation of corporate social responsibility is defined as follows: "a company choose to take, which greatly affected the operation of social welfare stakeholders, identification of" the social significance of responsibility company should go ahead and take out the legal minimum policies and business practices, and promote the key interests of stakeholders. (Jones, 2004, 67)

Discussion and Analysis

Though evaluating financial performance is conceived a simpler project, It also has its special complications. Here, the agreement also has short measuring instruments which apply. Many researchers use market standard, other standards and the report makes a number of assumptions these two problems. The two assessments, which constitutes how to measure a company's financial performance of different views, different theoretical significance, but in all areas, especially prejudice. Use of different assessment, needless to say, complicates the comparison of different consequences. In other words, the number of reports captures the historical aspects of corporate performance only. They are subject, in addition, to bias and manipulation of management and reporting procedures of the conflict. (Merchant, 2008, 59)

The expectations of market-based measures around the market's performance, they are less sensitive, unlike the reporting process and composition of the investors, a company's economic profit to the future the rated power. (Deresky, 2011, 124)

However, the performance standards based on the stock market to make way for the barrier, For example, the use of the market to assess the ...