DEA of Corporate Governance: The Model and Its Application
This chapter shows how the DEA model, through the application of specialized proprietary software used to circumvent arduous in-depth mathematical computations, can be applied to that facet of CG known as CSR. The initial discussion is directed at focusing on CSR as a pillar of CG through the stance of ethics and morality in business. The model that is adopted for CSR is that the company-wide capability for people, processes, and resources to meet its social obligations to all stakeholders, can be judged as a measure of corporate citizenship. CSRMC™, (Black 2004) is the framework on which DEA is tested as a suitable instrument for measuring CSR. This is the DEACSR model unique to this book. A series of tests are conducted using the DEA-Solver LV (Cooper et al. 2006) program to assess its suitability, and once its applicability is justified the final trials are conducted with the professional program DEA-Solver Pro 4.1 (Sect. B.2 in Appendix B). The data used in the final trials are the sanitized scores of the empirical results from the full cohort of an Australian bank study. The final results are presented for analysis and discussion in Chap. 6.