IDEAS home Printed from https://ideas.repec.org/a/spr/envsyd/v33y2013i2d10.1007_s10669-013-9447-4.html
   My bibliography  Save this article

Multiple-criteria decision-aiding framework to analyze and assess the governance of sustainability

Author

Listed:
  • Myriam Merad

    (INERIS, Parc technologique ALATA, BP 2)

  • Nicolas Dechy

    (IRSN, BP 17)

  • Frédéric Marcel

    (INERIS, Parc technologique ALATA, BP 2)

  • Igor Linkov

    (US Army Engineer Research and Development Center)

Abstract

Past and present disasters and scandals, such as the BP Deepwater Horizon oil disaster in the Gulf of Mexico in 2010, the Servier Mediator (Benfluorex) scandal in 2009 and the Enron collapse in 2001, have uncovered weaknesses in governance issues. The authors argue that there is a need to develop methods and tools to diagnose and assess the governance of organizations with respect to Sustainable Development (SD). However, this task remains difficult due to the fact that it is difficult to appraise the quality of governance. The authors propose a protocol to diagnose and analyze the governance of SD and explore the use of multiple-criteria decision-aiding methods to achieve this task. Two aggregation methods to assess the global governance are proposed: (1) The identification of a final governance index for an Organization. This method helps in establishing a global diagnosis of the quality of the governance of an Organization with respect to SD challenges. The governance index is based on the calculation of three indexes: the partial opportunity index, the partial risk index and the partial equilibrium index. (2) The ranking of a set of Organizations according to their governance of SD. This method aims at assessing a set of Organizations based on a pairwise comparison according to a set of criteria that represents the seven domains of the ISO 26000 norm (ISO 26000—Guidance on social responsibility, 2010). This method is based on the outranking aggregation approach ELECTRE III. A practical example is used to illustrate two methods of governance assessment.

Suggested Citation

  • Myriam Merad & Nicolas Dechy & Frédéric Marcel & Igor Linkov, 2013. "Multiple-criteria decision-aiding framework to analyze and assess the governance of sustainability," Environment Systems and Decisions, Springer, vol. 33(2), pages 305-321, June.
  • Handle: RePEc:spr:envsyd:v:33:y:2013:i:2:d:10.1007_s10669-013-9447-4
    DOI: 10.1007/s10669-013-9447-4
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10669-013-9447-4
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10669-013-9447-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brown, Lawrence D. & Caylor, Marcus L., 2006. "Corporate governance and firm valuation," Journal of Accounting and Public Policy, Elsevier, vol. 25(4), pages 409-434.
    2. Brown, Lawrence D. & Lee, Yen-Jung, 2010. "The relation between corporate governance and CEOs' equity grants," Journal of Accounting and Public Policy, Elsevier, vol. 29(6), pages 533-558, November.
    3. Bhimani, Alnoor & Soonawalla, Kazbi, 2005. "From conformance to performance: The corporate responsibilities continuum," Journal of Accounting and Public Policy, Elsevier, vol. 24(3), pages 165-174.
    4. Benston, George J., 2006. "Fair-value accounting: A cautionary tale from Enron," Journal of Accounting and Public Policy, Elsevier, vol. 25(4), pages 465-484.
    5. John Balmer & Shaun Powell & Stephen Greyser, 2011. "Explicating Ethical Corporate Marketing. Insights from the BP Deepwater Horizon Catastrophe: The Ethical Brand that Exploded and then Imploded," Journal of Business Ethics, Springer, vol. 102(1), pages 1-14, August.
    6. Abdel-khalik, A. Rashad, 2002. "Reforming corporate governance post Enron: Shareholders' Board of Trustees and the auditor," Journal of Accounting and Public Policy, Elsevier, vol. 21(2), pages 97-103.
    7. Chevis, Gia & Stuebs, Marty, 2012. "What ethics lie Beyond Oil?," Journal of Accounting Education, Elsevier, vol. 30(3), pages 307-324.
    8. Figueira, Jose & Roy, Bernard, 2002. "Determining the weights of criteria in the ELECTRE type methods with a revised Simos' procedure," European Journal of Operational Research, Elsevier, vol. 139(2), pages 317-326, June.
    9. Grappi, Silvia & Romani, Simona & Bagozzi, Richard P., 2013. "Consumer response to corporate irresponsible behavior: Moral emotions and virtues," Journal of Business Research, Elsevier, vol. 66(10), pages 1814-1821.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Z. A. Collier & D. Wang & J. T. Vogel & E. K. Tatham & I. Linkov, 2013. "Sustainable roofing technology under multiple constraints: a decision-analytical approach," Environment Systems and Decisions, Springer, vol. 33(2), pages 261-271, June.
    2. Thomas P. Seager & Zachary A. Collier & Igor Linkov & James H. Lambert, 2013. "Environmental sustainability, complex systems, and the disruptive imagination," Environment Systems and Decisions, Springer, vol. 33(2), pages 181-183, June.
    3. Anna Dos, 2017. "Multi-criteria decision methods for CSR management – literature review," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 18(1), pages 63-86.
    4. Siskos, Eleftherios & Tsotsolas, Nikos, 2015. "Elicitation of criteria importance weights through the Simos method: A robustness concern," European Journal of Operational Research, Elsevier, vol. 246(2), pages 543-553.
    5. Abhijit Paul & Paul F. Downton & Enoch Okoli & Jit K. Gupta & Mark Tirpak, 2014. "Does adding more lettuce make a hamburger truly green? A metaphor behind the green movement paradigm in designing cities," Environment Systems and Decisions, Springer, vol. 34(3), pages 373-377, September.
    6. Milad Zamanifar & Timo Hartmann, 2021. "A prescriptive framework for recommending decision attributes of infrastructure disaster recovery problems," Environment Systems and Decisions, Springer, vol. 41(4), pages 633-650, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mercedes Rubio‐Andrés & María del Mar Ramos‐González & Miguel Ángel Sastre‐Castillo & Ignacio Danvila‐del‐Valle, 2020. "Exploring sustainability, good governance, and social responsibility in small and medium enterprises," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 852-869, March.
    2. Chalevas, Constantinos G., 2011. "The Effect of the Mandatory Adoption of Corporate Governance Mechanisms on Executive Compensation," The International Journal of Accounting, Elsevier, vol. 46(2), pages 138-174, June.
    3. Nancy Harp & Mark Myring & Rebecca Shortridge, 2014. "Do Variations in the Strength of Corporate Governance Still Matter? A Comparison of the Pre- and Post-Regulation Environment," Journal of Business Ethics, Springer, vol. 122(3), pages 361-373, July.
    4. François Maon & Valérie Swaen & Kenneth de Roeck, 2021. "Coporate branding and corporate social responsibility: Toward a multi-stakeholder interpretive perspective," Post-Print hal-03275858, HAL.
    5. Kim, Sang-Joon & Bae, John & Oh, Hannah, 2019. "Financing strategically: The moderation effect of marketing activities on the bifurcated relationship between debt level and firm valuation of small and medium enterprises," The North American Journal of Economics and Finance, Elsevier, vol. 48(C), pages 663-681.
    6. Bae, John & Kim, Sang-Joon & Oh, Hannah, 2017. "Taming polysemous signals: The role of marketing intensity on the relationship between financial leverage and firm performance," Review of Financial Economics, Elsevier, vol. 33(C), pages 29-40.
    7. Manhwa Wu & Paoyu Huang & Yensen Ni, 2020. "The Impact of Institutional Shareholdings on Price Limits," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 27(3), pages 343-361, September.
    8. Haurant, P. & Oberti, P. & Muselli, M., 2011. "Multicriteria selection aiding related to photovoltaic plants on farming fields on Corsica island: A real case study using the ELECTRE outranking framework," Energy Policy, Elsevier, vol. 39(2), pages 676-688, February.
    9. Paul Tanyi & David B. Smith & Xiaoyan Cheng, 2021. "Does firm payout policy affect shareholders’ dissatisfaction with directors?," Review of Quantitative Finance and Accounting, Springer, vol. 57(1), pages 279-320, July.
    10. Esraa Esam Alharasis & Maria Prokofieva & Rateb Mohammad Alqatamin & Colin Clark, 2020. "Fair Value Accounting and Implications for the Auditing Profession: Historical Overview," Accounting and Finance Research, Sciedu Press, vol. 9(3), pages 1-31, August.
    11. Zhang, Eagle & Andrew, Jane, 2016. "Rethinking China: Discourse, convergence and fair value accounting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 36(C), pages 1-21.
    12. Amal Aouadi & Sylvain Marsat, 2018. "Do ESG Controversies Matter for Firm Value? Evidence from International Data," Journal of Business Ethics, Springer, vol. 151(4), pages 1027-1047, September.
    13. Rafael Alcadipani & Cíntia Rodrigues Oliveira Medeiros, 2020. "When Corporations Cause Harm: A Critical View of Corporate Social Irresponsibility and Corporate Crimes," Journal of Business Ethics, Springer, vol. 167(2), pages 285-297, November.
    14. Praveen Das, 2014. "The role of corporate governance in foreign investments," Applied Financial Economics, Taylor & Francis Journals, vol. 24(3), pages 187-201, February.
    15. Lee, Shih-Cheng & Lin, Chien-Ting, 2010. "An accounting-based valuation approach to valuing corporate governance in Taiwan," Journal of Contemporary Accounting and Economics, Elsevier, vol. 6(2), pages 47-60.
    16. Ahsan Akbar, 2015. "The role of corporate governance mechanism in optimizing firm performance: A conceptual model for corporate sector of Pakistan," Journal of Asian Business Strategy, Asian Economic and Social Society, vol. 5(6), pages 109-115, June.
    17. George J. Benston & Michael Bromwich & Alfred Wagenhofer, 2006. "Principles‐ versus rules‐based accounting standards: the FASB's standard setting strategy," Abacus, Accounting Foundation, University of Sydney, vol. 42(2), pages 165-188, June.
    18. Francesco Gangi & Mario Mustilli & Lucia Michela Daniele & Maria Coscia, 2022. "The sustainable development of the aerospace industry: Drivers and impact of corporate environmental responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 218-235, January.
    19. Roy, Bernard & Slowinski, Roman, 2008. "Handling effects of reinforced preference and counter-veto in credibility of outranking," European Journal of Operational Research, Elsevier, vol. 188(1), pages 185-190, July.
    20. Elyasiani, Elyas & Zhang, Ling, 2015. "CEO entrenchment and corporate liquidity management," Journal of Banking & Finance, Elsevier, vol. 54(C), pages 115-128.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:envsyd:v:33:y:2013:i:2:d:10.1007_s10669-013-9447-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.