Analysis of CSR activities Affecting Corporate Value Using Machine Learning
Kanau Mitsuzuka, Feng Ling, Hayato Ohwada · 2017
Corporate social responsibility (CSR) activities are attracting attention in Japan. Interest has increased among researchers investigating the potential link between CSR activity and financial performance. In this study, we propose a method of finding CSR activities related to corporate value using random forest, a machine-learning technique. The definition of CSR is ambiguous, so we used the International Organization for Standardization (ISO) 26000 framework as the basic standard for investigating companies, since it is a major guideline for CSR activities in Japan. Following this framework, we used 36 CSR activities as features. Results indicated that Occupational Health and Safety Management System (OHSMS) is the most important activity in corporate value classification. We then used association analysis to clarify how CSR activities related to corporate value influence. Results indicated that documentation of CSR policy is often performed in parallel with other activities, whereas, stakeholder engagement is not.