Contribution of socio-economic determinants to the management of sustainable performance: case study of Moroccan companies with Corporate Social Responsibility label
Authors: EL GHAZ Btissam 
Published: March 2024

In a dynamic environment marked by significant shifts in production and marketing systems across various industries, companies are compelled to adhere to national and international standards to meet evolving demands from both internal and external stakeholders. These emerging requirements have spurred companies to adopt strategic initiatives, such as emphasizing Corporate Social Responsibility (CSR), as part of their managerial actions. The primary aim is to integrate two key management science themes: indicators derived from management control systems and the management of sustainable performance. Consequently, our focus lies in the socio-economic approach, particularly the socio-economic cost-value of activities, which influences the diversity of indicators on one hand and the management of sustainable performance on the other hand, mediated through their variety. This underscores the importance of managing sustainable performance by utilizing measures and data tied to socio-economic fundamentals, prompting us to formulate our research question as follows: "To what extent does the cost-value of activities impact the management of sustainable performance?" The empirical investigation transitions from simply describing variables within our sample companies to conducting factor analysis via Principal Component Analysis-PCA. This aims to establish a robust factorial structure and subject several constructs to testing, assessing the internal consistency of the model, the quality and reliability of the sample, and the validity of research hypotheses. Our findings align with prior research, indicating that diverse indicators can inform managers about social and environmental practices, fostering positive effects on sustainable firm performance. However, excessive reliance on these indicators may lead to confusion and dispersion within companies. Hence, it's imperative to tailor indicators to the specific context and objectives of each firm, considering industry-specific nuances. Our study demonstrates that leveraging a diverse range of indicators is pivotal for enhancing sustainable performance dimensions and managing socio-economic factors amidst external pressures. Evaluating the measurement model is crucial for validating the reliability and validity of measurement instruments, as well as assessing the structural model's overall quality, which includes tests like coefficient of determination-R², Goodness of fit-GoF, and others. It's important to note that our measurement model encompasses both reflective and formative constructs. The structural model's quality is gauged by its explanatory power, evaluated through R², indicating explained variance in the variables under scrutiny. To address this issue, we chose to examine the connections between key socio-economic factors and the management of sustainable performance in Moroccan companies certified with CSR labels. Through structural equation modeling, we found that effectively managing the cost-value of activities using diverse indicators plays a significant role in enhancing sustainable performance within CSR-certified companies.