GDP, Genuine Progress Index and CSR

This paper is a call for a better indicator to measure economic, environmental, social progress and the well-being of the World’s population. The question of a possible negative relation between continuous growth and the welfare of a population queries the legitimacy of using the Gross Domestic Product as the sole or the quasi exclusive indicator of welfare. In this paper, we have solicited a possible alternative indicator (GPI) which could measure the well-being of a population by considering economic, social and environmental elements. The thesis you are about to read is divided into three main parts. Firstly, there is a study of GDP and GPI theoretically. Then, national and regional GDP and GPI computations have been undertaken and conclusions about their relations have been drawn. Finally, we have concluded the paper with a discussion regarding an adaptation of the results to the micro environment, considering the performance of firms, instead of the performance of nations. This thesis aimed to question the absolute prominence of GDP as a tool for economic welfare by proposing a new alternative indicator such as the GPI or the ISEW. Based on theoretical and practical analysis of the two indicators, we have concluded that GDP was not created in order to measure well-being of a population. The results indicated that GDP was a relevant indicator of economic activity but other indicators such as the GPI were needed with the intention to measure well-being. Indeed, other components such as environmental and social elements had to be considered while calculating the total welfare in a specific area. After having analysed and computed GPI and GDP for multiple countries, we have summarized at the end of this paper the most relevant findings. Finally, we have also opened the discussion of a more profound study of the question; of a positive relation between the level of sustainable performance of a state with the level of performance of its companies. We have determined that the new sustainable trends countries are encountering today can also be found in the micro level of corporations. The discussion has been opened to further research regarding the link between these two levels.