Evaluation of corporate sustinability performance in the Turkish banking sector with entropy and grey relaional analysis methods

Concerns regarding corporate sustainability have led to a new research area for maintaining corporate sustainability. As a result of these investigations, financial and non-financial reporting initiatives were established such as Environmental Social and Governance (ESG) reporting, Global Reporting Initiative (GRI) reporting, and Integrated Reporting (IR). Integrated Reporting has been performed by taking social, environmental, corporate governance and financial criteria into consideration. In this study, Corporate Social Responsibility (CSR) criteria have been examined considering the historical development of Integrated Reporting. Also, CSR criteria are explained in a multidimensional way. The study predominantly includes 2030 Sustainable Development Goals, how Integrated Reporting is emerged, corporate benefits of Integrated reporting and discussions on Integrated reporting. While analyzing the sustainability relationship between the CSR criteria and the banks, the weights for each criterion were calculated with the Entropy method. Also, the sustainability rankings between the banks were conducted with the Grey Relational Analysis method. This method is known as multiple-criteria decision analysis which is used in uncertainty situations. The results show that Entropy weights for social and environmental criteria according to CSR ranking results obtained from integrated reports of banks more than financial and corporate governance criteria. The importance of financial aspects of CSR for banks; It is understood from the amount of green bond investments that banks allocate to green investments, which increases every year. However they give less place to explanations on financial issues in their Integrated reports compared to other criteria.