How is a company’s social responsibility measured?

A company's social responsibility is measured by adding positive actions and subtracting negative effects. This approach provides a comprehensive view of how a company impacts its stakeholders, including employees, customers, the community, and the environment. Positive actions might include community engagement, sustainable practices, and ethical labor practices, while negative effects could relate to pollution, unethical business practices, or labor exploitation.

By considering both sides, a company can assess its overall contribution to society and make informed decisions to enhance its social responsibility. This measurement goes beyond just financial performance or performance metrics like employee counts or market share growth, as it encapsulates the broader ethical and social implications of business operations.