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Rethinking How We Measure Corporate Social Responsibility A Comparative Analysis of Four Consumer- Oriented CSR Rating Systems Ellis Jones, Ph.D.

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The increasingly common practice of self- regulation in which companies account for their own environmental, social, economic (and political) impacts on communities in some way connected to their own operations. Lindgreen and Swayne (2010), Crane et al (2007), Springer (2005), Carroll (1999) The increasingly common practice of self- regulation in which companies account for their own environmental, social, economic (and political) impacts on communities in some way connected to their own operations. Lindgreen and Swayne (2010), Crane et al (2007), Springer (2005), Carroll (1999) CORPORATE SOCIAL RESPONSIBILITY (CSR)

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The collective behavior of consumers who choose producers and products based on ethical considerations including sustainability, justice, and fairness as a way to participate in the solutions to global problems. (a.k.a. political consumerism) Byrant & Goodman (2004), Micheletti (2003) The collective behavior of consumers who choose producers and products based on ethical considerations including sustainability, justice, and fairness as a way to participate in the solutions to global problems. (a.k.a. political consumerism) Byrant & Goodman (2004), Micheletti (2003) ETHICAL CONSUMERISM

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GREENWASHING a specific type of media distortion that institutions (corporations) use to inflate the perception of their pro-environmental (and pro-social) behavior - Deegan (2002), Lydenberg (2002), Owen & Swift (2001), Beder (1997), Bruno (1997) a specific type of media distortion that institutions (corporations) use to inflate the perception of their pro-environmental (and pro-social) behavior - Deegan (2002), Lydenberg (2002), Owen & Swift (2001), Beder (1997), Bruno (1997)

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THE PROBLEM OF GREENWASHING

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HOW DO CONSUMERS NAVIGATE GREENWASHING? CONSUMER-ORIENTED CSR RATING SYSTEMS HOW DO CONSUMERS NAVIGATE GREENWASHING? CONSUMER-ORIENTED CSR RATING SYSTEMS

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FOUR CSR RATING SYSTEMS ETHICAL CONSUMER (UK) ETHICAL CONSUMER GROUP (AUS) GOODGUIDE (US) BETTER WORLD SHOPPER (US)* ETHICAL CONSUMER (UK) ETHICAL CONSUMER GROUP (AUS) GOODGUIDE (US) BETTER WORLD SHOPPER (US)*

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INTRODUCTION: SUMMARIZE PRESENTATION INTRODUCTION: SUMMARIZE PRESENTATION ETHICAL CONSUMER (UK) WEB MAGAZINE

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INTRODUCTION: SUMMARIZE PRESENTATION INTRODUCTION: SUMMARIZE PRESENTATION WEB BOOKLET APP ETHICAL CONSUMER GROUP (AUS)

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INTRODUCTION: SUMMARIZE PRESENTATION INTRODUCTION: SUMMARIZE PRESENTATION GOODGUIDE (US) WEB APP

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INTRODUCTION: SUMMARIZE PRESENTATION INTRODUCTION: SUMMARIZE PRESENTATION BETTER WORLD SHOPPER* (US) WEB BOOK APP

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METHODS ANALYZED 106 COMPANIES IN COMMON RATED BY ALL 4 SYSTEMS RATINGS STANDARDIZED INTO QUINTILES (BEST, BETTER, AVERAGE, WORSE, WORST) ANALYZED 106 COMPANIES IN COMMON RATED BY ALL 4 SYSTEMS RATINGS STANDARDIZED INTO QUINTILES (BEST, BETTER, AVERAGE, WORSE, WORST)

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SLIDE #1 INTRODUCTION: SUMMARIZE PRESENTATION INTRODUCTION: SUMMARIZE PRESENTATION

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SUMMARY OF FINDINGS 1.GEN. AGREEMENT ON WHAT CSR IS ENVIRONMENTAL, SOCIAL, ANIMAL*, POLITICAL** 2.SOME DISAGREEMENT OVER METHODS 3 rd PARTY (NONPROFIT) SOURCES + MEDIA COVERAGE, + CORPORATE SURVEYS, + CSR INVESTMENT RATINGS 3.MORE AGREEMENT THAN DISAGREEMENT VARIATION SEEMS TO COINCIDE WITH MAJOR METHODOLOGICAL CHALLENGES 1.GEN. AGREEMENT ON WHAT CSR IS ENVIRONMENTAL, SOCIAL, ANIMAL*, POLITICAL** 2.SOME DISAGREEMENT OVER METHODS 3 rd PARTY (NONPROFIT) SOURCES + MEDIA COVERAGE, + CORPORATE SURVEYS, + CSR INVESTMENT RATINGS 3.MORE AGREEMENT THAN DISAGREEMENT VARIATION SEEMS TO COINCIDE WITH MAJOR METHODOLOGICAL CHALLENGES

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RESULTS: THERE IS SOME CONSENSUS EMERGING UNANIMOUS AGREEMENT (3%)* MAJORITY AGREEMENT (18%)* COMPLETE DISAGREEMENT (13%)* UNANIMOUS AGREEMENT (3%)* MAJORITY AGREEMENT (18%)* COMPLETE DISAGREEMENT (13%)*

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RESULTS: CONSENSUS COMPANIES

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FOUR REQUIREMENTS FOR BETTER RESEARCH & ACTION 1.CLARIFY CSR MESSAGES FOR CONSUMERS CONFLICTING INFORMATION LEAD TO CONFUSION 2.REQUIRE INCREASED TRANSPARENCY LEGISLATIVE MANDATE TO TRACK BEHAVIOR 1.DESIGNATE GREENWASHING AS FRAUDULENT SIGNIFICANT SANCTIONS FOR DECEIVING THE PUBLIC 1.EDUCATE CONSUMERS ON ECONOMIC ROLE RESPONSIBILITY FOR COMPANIES & CONSUMERS 1.CLARIFY CSR MESSAGES FOR CONSUMERS CONFLICTING INFORMATION LEAD TO CONFUSION 2.REQUIRE INCREASED TRANSPARENCY LEGISLATIVE MANDATE TO TRACK BEHAVIOR 1.DESIGNATE GREENWASHING AS FRAUDULENT SIGNIFICANT SANCTIONS FOR DECEIVING THE PUBLIC 1.EDUCATE CONSUMERS ON ECONOMIC ROLE RESPONSIBILITY FOR COMPANIES & CONSUMERS

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Thank you for your time. More details available: You can contact me at: www.betterworldshopper.org ejones@holycross.edu More details available: You can contact me at: www.betterworldshopper.org ejones@holycross.edu