Sustainability in Action: Identifying and Measuring the

An increasing number of senior managers recognize the importance of formulating a strategy on corporate social responsibility. However they often find it difficult to translate the strategy into action. This article presents a framework that describes the drivers of corporate social performance, the actions that managers can take to affect that performance, and the consequences of those actions on both corporate social and financial performance. By carefully identifying and articulating the drivers of social performance and measuring and managing the broad effects of both good and bad performance on the corporation’s various stakeholders, managers can make a significant contribution both to their company and to society. This more careful understanding of both the drivers of social performance and the impacts of that performance on the various corporate stakeholders permits better integration of that information into the day-to-day operational decisions and the institutionalization of social concerns throughout the organization. The framework includes the details of the systems, structures, and measures that are necessary to change organizational culture and processes to improve both social and financial performance. c 2001 Elsevier Science Ltd. All rights reserved