A valuation model for corporate social responsibility

Purpose - The purpose of this paper is to develop an analytical model for appraising and measuring corporate social responsibility (CSR). The theoretical and conceptual grounds that sustain the model are based on previous approaches. Design/methodology/approach - The utility function, which is the basis of a company's economic dimension, is analyzed in its philosophical and ethical setting, concentrating largely on the Utilitarian and Hedonistic schools and a maximizing agent, the homo oeconomicus''. Findings - The resulting new approach permits an analytical explanation of the behavior of a company and its owners when incorporating both economic rationality (homo oeconomicus'') and social responsibility. Originality/value - The quantitative determination of a global indicator for social responsibility is shown, as is the development of a method for calculating a monetary value of CSR.