Measuring sustainability performance using an integrated model

Abstract

This study presents a sustainability performance measurement model integrating the Balanced Scorecard (BSC) perspective and the Fuzzy multiple-criteria decision-making (FMCDM) approach. First, this study proposes a list of twenty-one indexes of sustainability, based on four BSC-based dimensions, in line with triple bottom line sustainability dimensions, derived from the literature and experts’ inputs. Then, the relative weight of each sustainability index was evaluated using the Fuzzy Analytic Hierarchy Process (FAHP). To demonstrate the proposed approach, we practically measure the sustainability performance using three MCDM methods — Simple Additive Weighting (SAW), fuzzy Technique for Order Preference by Similarity to Ideal Situation (TOPSIS), and fuzzy Multi-Criteria Optimization and Compromise Solution (VIKOR). Finally, strategies for improving sustainability performance for a real-word case are suggested. The proposed measurement model can be an appropriate tool for industrial managers seeking to evaluate the efficacy of their sustainability strategies.