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Evaluating sustainability in organisations with a fuzzy logic approach

Evaluating sustainability in organisations with a fuzzy logic approach Purpose – The aim is to determine whether the organisations more strategically committed to their stakeholders present better social and financial performance and, based on this relationship, to determine the state of the art of the Spanish sectors' approach to sustainable development. Design/methodology/approach – This paper analyses the sustainability approach of a sample of 52 Spanish listed firms. This process is based on the study of different indexes generated in order to evaluate the company's commitment through its stakeholders, the social and financial performance of these organisations, and the relationship between them. Previous results showed a positive and not significant relationship between these variables and a positive financial performance. This paper replicates a former research by introducing a fuzzy‐ logic‐based methodology in order to generate the aforementioned indexes. Findings – The current results support the conclusions formerly obtained and simultaneously demonstrate that big Spanish companies are at an incipient stage of development of a clearly sustainability‐oriented management. Research limitations/implications – The unavailability of a long series of organisations' sustainability information is an obstacle for a broader analysis. This research could motivate the usefulness of the fuzzy logic methodology for analysing the business sustainability approach and to develop studies on the corporate social performance. Originality/value – The use of fuzzy logic methodology for the generation of indexes related to the organisation's social responsibility and sustainability results. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Industrial Management & Data Systems Emerald Publishing

Evaluating sustainability in organisations with a fuzzy logic approach

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References (55)

Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
0263-5577
DOI
10.1108/02635570810884030
Publisher site
See Article on Publisher Site

Abstract

Purpose – The aim is to determine whether the organisations more strategically committed to their stakeholders present better social and financial performance and, based on this relationship, to determine the state of the art of the Spanish sectors' approach to sustainable development. Design/methodology/approach – This paper analyses the sustainability approach of a sample of 52 Spanish listed firms. This process is based on the study of different indexes generated in order to evaluate the company's commitment through its stakeholders, the social and financial performance of these organisations, and the relationship between them. Previous results showed a positive and not significant relationship between these variables and a positive financial performance. This paper replicates a former research by introducing a fuzzy‐ logic‐based methodology in order to generate the aforementioned indexes. Findings – The current results support the conclusions formerly obtained and simultaneously demonstrate that big Spanish companies are at an incipient stage of development of a clearly sustainability‐oriented management. Research limitations/implications – The unavailability of a long series of organisations' sustainability information is an obstacle for a broader analysis. This research could motivate the usefulness of the fuzzy logic methodology for analysing the business sustainability approach and to develop studies on the corporate social performance. Originality/value – The use of fuzzy logic methodology for the generation of indexes related to the organisation's social responsibility and sustainability results.

Journal

Industrial Management & Data Systems – Emerald Publishing

Published: Jun 27, 2008

Keywords: Stakeholder analysis; Financial performance; Fuzzy logic; Spain

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