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Measurement of Corporate Social Action

Discovering Taxonomy in the Kinder Lydenburg Domini Ratings Data

James E. Mattingly

University of Northern Iowa

Shawn L. Berman

Santa Clara University

The contribution of this work is a classification of corporate social action underlying the Social Ratings Data compiled by Kinder Lydenburg Domini Analytics, Inc. We compare extant typologies of corporate social action to the results of our exploratory factor analysis. Our findings indicate four distinct latent constructs that bear resemblance to concepts discussed in prior literature. Akey finding of our research is that positive and negative social action are both empirically and conceptually distinct constructs and should not be combined in future research. Additionally, we recommend that some prior research results be reconsidered to determine whether these newly derived measures might clarify some previous findings.

Key Words: corporate social action • corporate social performance • corporate financial performance • KLD data

Business & Society, Vol. 45, No. 1, 20-46 (2006)
DOI: 10.1177/0007650305281939


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