Bank performance evaluation of sustainability strategy dimensions in the emerging market using the MCDM approach

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Abstract

Increased public awareness about the environmental and social impact of the businesses has led to the integration of sustainability into the core business activities. The banking sector, being one of the major drivers of the economy, is also focusing on social and environmental performance along with generating financial returns. The purpose of this paper is to evaluate the sustainability performance of Indian banks using grey relational analysis (GRA). This study uses three criteria to evaluate the bank’s sustainability performance, which include economic, environmental, and social. Grey relational grades are obtained for ranking the banks according to their sustainability performance. The novelty of the study lies in the fact that this study is the first attempt to evaluate the sustainability performance of Indian banks using the GRA methodology. This study has practical implications for the Indian banking industry, which could encourage managers to formulate policies and strategies for adopting environmental and social parameters in their operations to improve their overall performance. The study results could also influence investors to invest in banks seeking sustainability in their operations as the country progresses towards sustainable development.

Keywords: Grey Relational Analysis, Sustainability Performance, Indian Banks, MCDM Problem, Sustainable Development, Social and Environmental Sustainability, Sustainability Reporting

Authors’ individual contribution: Conceptualization — A.G.; Methodology — A.G.; Formal Analysis — A.G. and N.S.; Writing — Original Draft — A.G., N.S., and A.T.; Writing — Review & Editing — A.G. and N.S.; Supervision — A.G. and N.S.; Project Administration — A.G. and N.S.; Visualization — A.G. and N.S.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: M1, M2, N2, Q5

Received: 03.06.2023
Accepted: 28.06.2024
Published online: 02.07.2024

How to cite this paper: Goel, A., Sahay, N., & Tyagi, A. (2024). Bank performance evaluation of sustainability strategy dimensions in the emerging market using the MCDM approach. Corporate & Business Strategy Review, 5(3), 106–116. https://doi.org/10.22495/cbsrv5i3art10