Measuring corporate sustainability performance by using a novel hybrid MCDM model

The perpetual consumption of finite natural resources to satisfy human needs necessitates a critical examination of resource efficiency and its long-term implications for future generations. Addressing this challenge, corporate sustainability has emerged as the business imperative, requiring firms to balance economic objectives with crucial environmental and social considerations. While corporate activities significantly advance societal welfare, they simultaneously generate adverse effects, including environmental degradation and labor issues. This growing awareness among stakeholders has consequently intensified the demand for greater transparency and accountability. Therefore, sustainability reporting has become an indispensable mechanism for firms to effectively communicate their holistic environmental, social, and economic performance to the public. In this thesis, it is aimed to evaluate the corporate sustainability performances of firms in terms of economic, social and environmental dimensions and to compare the corporate sustainability performances of firms. A novel hybrid Multi-Criteria Decision-Making (MCDM) model based on CRITIC and RAWEC was proposed to evaluate the corporate sustainability performance of firms for the years 2021, 2022, and 2023. Criteria weights are determined using the CRITIC method. Then, alternative firms are ranked using the RAWEC method. According to the results obtained from the proposed MCDM model, Arçelik A.Ş. (A1) ranked first with the highest performance in 2021, and Aselsan A.Ş. (A2) in 2022 and 2023. In contrast, Kardemir Karabük Iron and Steel Ind. and Tic. A.Ş. (A9) ranked last with the lowest performance in all three years. At the end of the study, sensitivity analysis was performed to test the accuracy and validity of the proposed model.