An empirical study to prioritize the determinants of corporate sustainability performance using analytic hierarchy process

Abstract

Purpose The use of natural resources by organizations has a significant impact on society, resulting in business firms playing a vital role in developing sustainable development. As a result, corporate sustainability has become an integral aspect of a company’s vision and policy in the modern days. Companies issue sustainability reports based on various criteria and metrics, thereby attempting to gain a competitive edge. This study aims to assess and prioritize the numerous factors that influence corporate sustainability performance. Design/methodology/approach The analytic hierarchy process (AHP) is used to prioritize the identified determinants of corporate sustainability performance based on the literature. Several experts from business and academia were engaged to build a comparison matrix for assessing the various aspects of corporate sustainability performance. As a result, various corporate sustainability determinants were determined and prioritized following an extensive literature review using the AHP. Findings The most critical component for companies is an economic indicator. Developing environmentally and socially responsible suggestions must be a priority for the organization’s economic performance. Economic performance is believed to be most heavily influenced by innovation and in the other category like environmental and social performance are highly influenced by environment management policies and shareholder responsibility, respectively. Researchers’ findings suggest that to promote sustainability, top executives should devote all of their attention to innovation, environment management policies and shareholder responsibility. Research limitations/implications These studies are primarily concerned with developed countries. And, the other fundamental constraint of the AHP study is that the rating scale adopted in the analysis is conceptual. Therefore, pairwise comparisons with a variety of indicators have the potential to introduce bias into the results. Practical implications This paper proposes a methodical and operational technique for selecting the ultimate priority of sustainability indicators when it comes to exploiting competitive information on business performance. The paper also recommended sustainability rating technique might be carried out once every six months to improve the overall quality and performance of the organization. Originality/value The advantages of adopting and executing corporate sustainability are enormous, and managers must determine whether sustainability is profitable or not. This question prompts further inquiries. For example, what are the numerous critical determinants of corporate sustainability performance? Several scholars throughout the world are looking at it for this reason. As a result, it is essential to comprehend and prioritize the various determinants of corporate sustainability performance.

Sustainable lean manufacturing as long-term strategy: performance framework development and prioritization

“…The AHP problem-solving process could identify three principles: decomposition, comparative judgment and the synthesis of priorities (Mal et al. , 2022).…”

“…The AHP problem-solving process could identify three principles: decomposition, comparative judgment and the synthesis of priorities (Mal et al, 2022). The decomposition principle breaks down the problem from general to specific using a hierarchy model.…”

“…The decline of natural resources, the degradation of the environment, and the responsibility to society are motivating firms to adopt the sustainability strategy in order to reduce the negative consequences of business activities; environmental performance is characterized by the usage of natural assets during their operation and the number of results of its tasks (Mal et al, 2022). The relationship between sustainability and business has become one of the present central points; the automotive industry is considered one of the major pollutants, and there are pressures to reduce the environmental impacts and to clean itself up (Mathiyazhagan et al, 2021).…”

“…The decline of natural resources, the degradation of the environment, and the responsibility to society are motivating firms to adopt the sustainability strategy in order to reduce the negative consequences of business activities; environmental performance is characterized by the usage of natural assets during their operation and the number of results of its tasks (Mal et al. , 2022).…”

On the issue of selecting the projects for sustainable development of enterprise taking into account interests of stakeholders and the way to solve it

“…Вчений Галбріс Дж. доводить аналітичними методами, що сталий розвиток підприємства залежить від персональної уваги до нього топ-менеджерів [15], а колектив авторів у [16] методом аналітичної ієрархії про-цесів обґрунтовує пріоритетність таких детермінант сталого розвитку підприємства, як заробітна платня працівників, екологічні витрати, співпраця з громадським сектором.…”