A Well-Defined Composite Indicator: An Application to Corporate Social Responsibility

Juan Aparicio , Magdalena Kapelko , Juan F. Monge

Abstract

This paper introduces a model to construct composite indicators for performance evaluation of decision making units,which is based upon the determination of the least distance from each assessed unit to a frontier estimated by data envelopment analysis. This generates less demanding targets from a benchmarking point of view. The model also makes it possible to account for the existence of slacks in all the considered dimensions (sub-indicators), playing with the notion of Pareto efficiency. Additionally, our approach satisfies units invariance, translation invariance and strong monotonicity and ensures that the weights used for the aggregation of the sub-indicators are always strictly positive. All previous approaches based on data envelopment analysis have failed to satisfy at least one of these properties. We also implement a new version of the Russell output measure of technical efficiency working with full-dimensional efficient facets. Finally, the new approach is illustrated by an application to the sphere of corporate social responsibility, showing the main empirical implications of the theoretical properties
Author Juan Aparicio - Miguel Hernández University of Elche (UMH)
Juan Aparicio,,
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, Magdalena Kapelko (BM / DoL)
Magdalena Kapelko,,
- Department of Logistics
, Juan F. Monge - Miguel Hernández University of Elche (UMH)
Juan F. Monge,,
-
Journal seriesJournal of Optimization Theory and Applications, ISSN 0022-3239, e-ISSN 1573-2878, (N/A 70 pkt)
Issue year2020
Vol186
No1
Pages299-323
Publication size in sheets1.2
Keywords in EnglishData Envelopment Analysis, Benefit of the Doubt, Least Distance, Benchmarking, Strong Monotonicity
ASJC Classification1803 Management Science and Operations Research; 2604 Applied Mathematics; 2606 Control and Optimization
DOIDOI:10.1007/s10957-020-01701-1
Referenced project[2016/23/B/HS4/03398] Społeczna odpowiedzialność biznesu i efektywność oraz zmiana produktywności przedsiębiorstw. . . Project leader at WUEB: Magdalena Kapelko, , start date 29-09-2017, end date 28-09-2021, in run
Z Projects financed by NSC [Projekty finansowane przez NCN]
Languageen angielski
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Aparicio_Kapelko_Monge_A_Well_Defined_Composite_Indicator.pdf 430,52 KB
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OSWIAD_Kapelko_M_A-well-definied_composite_2020skan.pdf 452,03 KB
Score (nominal)70
Score sourcejournalList
Publication indicators Scopus SNIP (Source Normalised Impact per Paper): 2018 = 1.406; WoS Impact Factor: 2018 = 1.6 (2) - 2018=1.749 (5)
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UwagaThe authors are grateful to the associate editor and three anonymous reviewers for their comments. We also wish to thank the National Science Centre in Poland (Grant Number 2016/23/B/HS4/03398) and the Spanish Ministry for Economy and Competitiveness (Ministerio de Economia, Industria y Competitividad), the State Research Agency (Agencia Estatal de Investigacion) and the European Regional Development Fund (Fondo Europeo de Desarrollo Regional) under Grant PID2019-105952GB-I00 (AEI/FEDER, UE) for providing financial support for this article.
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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