Measuring Corporate Environmental Performance: A Methodology for Sustainable Development |
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| Authors: | Elena Escrig‐Olmedo María Jesús Muñoz‐Torres María Ángeles Fernández‐Izquierdo Juana María Rivera‐Lirio |
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| Affiliation: | Department of Finance and Accounting, Jaume I University, Castellón, Spain |
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| Abstract: | Assessing corporate environmental performance (CEP) that is both comprehensive and consistent with sustainable development both for society and companies, while at the same time taking heed of the facts and interests of each stakeholder, is not a simple feat. Due to the multidimensional character of the sustainability concept, several questions must be considered in the evaluation process: (i) the qualitative nature of indicators and the complexity of developing a synthetic index; (ii) the difficulty of choosing properly statistical techniques for aggregation and (iii) the difficulty of introducing stakeholders’ preferences in the assessment models. This paper is an attempt to address this challenge by developing a framework for the assessment of CEP, based on the application of a fuzzy multi‐criterion decision‐making (MCDM) method. To achieve positive scores in a CEP assessment, an organization should be strategically committed and engage in environmental management and governance structures that are translated into good results in terms of both engagement and operational performance. Unless such premises are explicitly incorporated into the assessment criteria, the results would reveal that the CEP measurement could not be brought into a line with an earnest ambition of achieving true sustainable development. Copyright © 2015 John Wiley & Sons, Ltd and ERP Environment |
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| Keywords: | sustainable development corporate environmental performance (CEP) multi-criterion decision-making (MCDM) methods commensurability fungibility stakeholders |
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