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KOCMANOVÁ, A. PAVLÁKOVÁ DOČEKALOVÁ, M. SIMANAVIČIENÉ, Ž.
Original Title
Corporate Sustainability Measurement and Assessment of Czech Manufacturing Companies using a Composite Indicator
Type
journal article in Web of Science
Language
English
Original Abstract
This paper discusses the measurement and assessment of corporate sustainability by a composite indicator. The aim of the paper is a construction of a composite indicator "Index corporate sustainability” (ICS). A tool for measuring and assessing corporate sustainability is an appropriately designed model called the “Sustainable Environmental, Social, Governance and Economic Model (SEESG Model)". The composite indicator ICS integrates 5 financial (economic) and 14 non-financial, environmental, social and corporate governance (ESG) performance indicators Iji, which are determined in a stepwise fashion from a basic set of performance indicators using the principal component analysis (PCA) modelling. The composite indicator ICS is one of the possible ways to create a tool for measuring and assessing corporate sustainability that allows for the assessment of companies by a set of financial and non-financial indicators in various areas of their performance, thus enabling a detailed analysis and determination of the impact of various performance areas and factors in complex corporate performance. An important characteristic of the composite indicator is the possibility to easily make comparisons and rankings of companies in a particular sector, and estimate whether they are heading towards sustainability. The use of benchmarking for company-to-company comparisons makes it possible to interpret summary information and to quantify differences in the performance of individual companies using graphic visualization. For this reason, ICS can be offered as a consistent and flexible benchmarking for owners, managers and investors. Using this indicator, they can incorporate sustainability into their decision-making processes, and achieve economic growth and ensure protection of the environment and social values.
Keywords
corporate sustainability; composite indicator; performance indicators; modelling; Sustainable Environmental, Social, Governance and Economic Model; the principal component analysis
Authors
KOCMANOVÁ, A.; PAVLÁKOVÁ DOČEKALOVÁ, M.; SIMANAVIČIENÉ, Ž.
Released
15. 3. 2017
Publisher
Kaunas University of Technology
Location
Kaunas
ISBN
1392-2785
Periodical
Engineering Economics
Year of study
28
Number
1
State
Republic of Lithuania
Pages from
88
Pages to
100
Pages count
13
BibTex
@article{BUT134251, author="Alena {Kocmanová} and Marie {Pavláková Dočekalová} and Žaneta {Simanavičiené}", title="Corporate Sustainability Measurement and Assessment of Czech Manufacturing Companies using a Composite Indicator", journal="Engineering Economics", year="2017", volume="28", number="1", pages="88--100", doi="10.5755/j01.ee.28.1.15323", issn="1392-2785" }