In Indian context i am trying to verify the financial performance in relation to CG and CSR. Hence for empirical analysis this is required.
One such method is the Sustainable Development Goals (SDG) index. This index quantifies CSR by providing a granular perspective with clear justification for methods, which is more applicable to academic research in comparison with the CSR indices published by private companies.
Another method is the Corporate Social Responsibility Scale, which was developed to measure CSR in the hospitality industry. This scale includes indicators based on a literature review and qualitative research and has been validated through first- and second-order confirmatory factor analysis.
Use a combination of proxies from ownership structure, board characteristics, board committees, board female gender diversity, and auditors' characteristics.
For CSR, use donations, community development, human resource development, and environmental development cost (if available) in your country.
I like to suggest a method of measuring Corporate Governance with compliance with the code of practice. The CSR with the Pacific Report of the United Nations Economic and Social Commission for Asia (2008) of 8 major characteristics of good governance, such as rule of law, accountability, transparency, participation etc. The reason is that the use of monetary quantification may not be feasible.
Selecting appropriate methods for measuring corporate governance and CSR depends on specific needs and available resources. It is recommended to use a combination of quantitative metrics, such as regulatory compliance, and qualitative assessments of ESG factors (environmental, social, and governance) that are tailored to the industry and context.
