Corporate sustainability performance measurement based on a new multicriteria sorting method

Abstract

The concept of sustainability deals with protecting and sustaining society and environment for future generations while trying to meet the maximization of market capitalization objective. Despite the increased awareness of corporate sustainability, questions remain on how to measure performance. The objective of this paper is to propose a new measurement method, which is Multimoora Sort, for corporate sustainability performance and make an empirical case with the 25 companies listed in Fortune 500 USA. We chose four economic subcriteria, two environmental subcriteria, and four social subcriteria for the methodology. The results of the study show that the proposed methodology is a practical and efficient decision method. The most important contribution of the study to the literature is to present a new evaluation method in the measurement of sustainability performance as well as the results of the empirical case are supported by the resource dependency theory, institutional theory, and stakeholder theory.