Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing Companies Operating in the BIST Sustainability Index

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Journal of Economy Culture and Society DOI: 10.26650/JECS2021-1023966
Journal of Economy Culture and Society
ISSN: 2602-2656 / E-ISSN: 2645-8772
Research Artcle
Development of a New Composite Index for
Measuring the Sustainability Performance of
Manufacturing Companies Operating in the
BIST Sustainability Index*
Soner ALACA1 , 2
* Ths study s derved from the frst author’s
doctoral thess
1Dr., Mansa Celal Bayar Unversty, Insttute of
Socal Scences, Mansa, Turkye
2Dr., Mansa Celal Bayar Unversty, Faculty
of Busness Admnstraton, Toursm
Management, Mansa, Turkye
ORCID: S.A. 0000-0003-4005-302X;
M.T. 0000-0001-9311-1532
Corresponding author:
Mustafa TEPECİ,
Mansa Celal Bayar Unversty, Faculty
of Busness Admnstraton, Toursm
Management, Mansa, Turkye
E-mail: mtepec@yahoo.com
Submitted: 15.11.2021
Accepted: 17.04.2022
Citation: Alaca, S., & Tepec, M. (2022).
Development of a new composte ındex for
measurng the sustanablty performance
of manufacturng companes operatng
n the BIST sustanablty ndex. Journal of
Economy Culture and Society, Advance onlne
publcaton.
https://do.org/10.26650/JECS2021-1023966
ABSTRACT
The number of studies on sustainability assessment tools and models has
increased in the last two decades. Composite Indexes (CIs) have become
popular as a useful tool for assessing business level sustainability to
compare the companies operating in the same sector. Limited studies
have covered all three dimensions (economic, environmental, and social)
of the sustainability assessment in an integrated manner in Turkey. This
paper aims to measure and evaluate the Corporate Sustainability (CS)
performances of ten manufacturing companies operating in the Istanbul
Stock Exchange Market. For this purpose, a new integrated sustainability
composite index was developed by using previous composite indexes in
the literature. The developed assessment model provides a practical tool
for the organizations in the manufacturing sector in Turkey by measuring
and evaluating their sustainability performances in a holistic way. By using
the analytical hierarchy process (AHP), the levels of the sustainability
performances of ten manufacturing organizations were assessed in a
short time. The index allows managers to make comparisons among
companies within the same sector. The results further indicated that the
economic dimension score of the analyzed organizations had a weighty
and salient effect on the total corporate sustainability performance score.
This finding contributes to the literature that economic performance is
predominantly effective in the sustainability performance of businesses.
Keywords: Sustainability Assessment, Integrated Measurement,
Composite Index, Economic Dimension, BIST
This work is licensed under Creave Commons Aribuon-NonCommercial 4.0 Internaonal License

Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
2Journal of Economy Culture and Society
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                 
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        
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        
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
-
-
-

 
-



-

-
-

   

  

-



Alaca S, Tepeci M
3
Journal of Economy Culture and Society

-


-


    
          




-




 


    


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
4Journal of Economy Culture and Society
 -
-


as “… development that meets the needs of the present without compromising the ability of future
generations to meet their own needs    
-
-

-




  -


 adopting business strategies and activities
that meet the needs of the enterprise and its stakeholder today while protecting, sustaining and
enha ncing the huma n and natural re sources that will be needed in the futu re

-



       
-
      






-


 







Alaca S, Tepeci M
5
Journal of Economy Culture and Society
   

-


-
       

  -
ronmental,
 
 

 
-

-
-
-
-

Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
6Journal of Economy Culture and Society


-

  
         

    






 

-

       
 

  

 







 




-



   -
-
 

  
            
      



-

Alaca S, Tepeci M
7
Journal of Economy Culture and Society
   

 -

        
 
-
        
 -


 -
     -


               
-
-
 -


-


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
8Journal of Economy Culture and Society








Alaca S, Tepeci M
9
Journal of Economy Culture and Society



      


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
10 Journal of Economy Culture and Society


   -
-


-



Alaca S, Tepeci M
11
Journal of Economy Culture and Society
-
      


           



-

  

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
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

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





Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
12 Journal of Economy Culture and Society



Alaca S, Tepeci M
13
Journal of Economy Culture and Society

            +  
--
-



 

-


     




   




-




   
    
   
    




      
 


-
  

     
-
-

-


-
        

       

      
  
 





Alaca S, Tepeci M
15
Journal of Economy Culture and Society

Dimension
Indicators


Dimension
Indicators


   
   
   
   
   
   
   
   
   
   
 
 
 
Economic
Envi ronm ental
Social

    
                 
   
         
   
-
     

 * I   

j -


   -
   -


       


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
16 Journal of Economy Culture and Society







Alaca S, Tepeci M
17
Journal of Economy Culture and Society
 
    
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     

    

    
     

    

    

    
     
     

Social
Economic
Enviro nment
Dimension
ICS ET Indica tors


-
-
       


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
18 Journal of Economy Culture and Society

         
           
           
           
           

 
    
TEC           
           
           
           
AEM           
           
           
           
           
  
 
    
           
           
           
            
           
TET           
           
           
            
            
  

    
        
       
 

Indicator

        
       
        
       
-
-



Alaca S, Tepeci M
19
Journal of Economy Culture and Society

    

    

    

    
Total Score     
  
Dimension
 
 

Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
20 Journal of Economy Culture and Society



  
       

0.172
0.148 0.143
0.126 0.125 0.119
0.093
0.070
0.047 0.046
Total Sustainability Score
Company s




Alaca S, Tepeci M
21
Journal of Economy Culture and Society
 


Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
22 Journal of Economy Culture and Society


-

-
  
          

         

-






  

  
  



-

Alaca S, Tepeci M
23
Journal of Economy Culture and Society

                


-
-
-
-
-
 


  

   
-
        
       
-
-

-



           

-


-



-
-


    



Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
24 Journal of Economy Culture and Society
 
                 -


        
 -

  
  


Textile and Apparel, 25

 
Ömer Halisdemir Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 13
     
Unpublished Doctoral Thesis
 
               
 Ekonomik ve Sosyal Araştırmalar Dergisi, (11)
 
Procedia CIRP, 17 

          Advanced Manufacturing
Technologies, 87
 Pamukkale University Journal of
Social Sciences Institute, 39
    Journal of
Environmental Planning and Management, 44
 Corporate Sustainability: Integrating Performance & Reporting.

     
Procedia Economics and Finance,
                   
Environmental Management, 217
               
Journal of Cleaner Production, 230 

 CIRP Annals-Manufacturing Technologies, 63
                    
Engineering Economics, 62 
Busine ss stra teg y for sustai nable deve lopment: leadership and accoun tabili ty for the 90’s
 
 Ecological
Indicators, 61
Cannibals with forks: the triple bottom line of 21st centur y business.
      
Long Range Planning, 48 

Journal of Accounting and Finance, 71

Alaca S, Tepeci M
25
Journal of Economy Culture and Society
  
 Muhasebe ve Vergi Uygulamaları Dergisi, 11
                   
 Journal of Sustainability, 11
              
Proceedings of the 17th CIRP International Conference on Life Cycle Engineering
              
Proceedings of the 17th CIRP International Conference on Life Cycle Engineering

Ecological Indicators, 81, 
 
    
 Muhasebe Bilim Dünyası Dergisi, 21
            

   Uluslararası İktisadi ve İdari İncelemeler Dergisi, 17


International Journal of Production Research, 53 

           Journal of Cleaner
Production, 153

Ecological Indicators, 24
           
Journal of Multi-Criteria Decision Analysis, 26
 The KPMG Survey of Sustainability Reporting 2020

Clean Technologies and Environmental Policy,
5
              Resources,
Conser vation & Recycling, 43
                    
Journal of Cleaner Production, 13
Personnel Psycholog y 28
                    
International Journal of Production Economics, 140

Journal of Manufacturing Systems, 32,
                    Journal of
Cleaner Production, 19

             Eco-Factories of the Future, Sustainable
Production, Life Cycle Engineering and Management
                  

          Sustainability Appraisal: Quantitative Methods and
Mathematical Techniques for Environmental Performance Evaluation    
                     
         

Development of a New Composite Index for Measuring the Sustainability Performance of Manufacturing...
26 Journal of Economy Culture and Society
  İşletme Araştırmaları Dergisi,
7 
Handbook on constructing
composite indicators: methodology and user guide
 
Ecological Economics 60
    
Environmental Science & Policy, 5
Ecological
Indicators 8
           
                    
Eskişehir Osmangazi Üniversitesi İİBF Dergisi
 
   
Tarih, Kültür ve Sanat Araştırmaları Dergisi, 1
The anal ytic hiera rch y process: planning, prior it y setting, resource allocation

              
Ecological Indicators, 7
               
Ecological Indicators, 9 (2)
              
Ecological Indicators, 15 (1)
              
Clean Technologies & Environmental Policy 14
  

      

 Technological Innovation for Cyber-Physical Systems. DoCEIS 2016. IFIP Advances in Information and
Communication Technology
              Journal of Cleaner Production 9,
 
            
Erzincan Üniversitesi Eğitim
Fakültesi Dergisi, 20
 
Journal of Cleaner Production

Clean Technologies and Environmental Policy 14

                   
Journal of Environmental Management, 197