A HYBRID FRAMEWORK FOR ASSESSING MULTI-DIMENSIONAL BANK SUSTAINABILITY WITH MULTI-CRITERIA DECISION MAKING

Özet

This paper proposes a hybrid multi-criteria decision-making (MCDM) framework to comprehensively assess the multi-dimensional sustainability performance in the banking industry. The suggested framework integrates the Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) and the Alternative Ranking Order Method Accounting for Two-Step Normalization (AROMAN) to ensure objective, consistent, and robust evaluation. The proposed hybrid framework is empirically applied to a real-world case study of Bank of America-recognized as the most valuable banking brand in the United States-to assess its performance across Environmental, Social, Governance, and Profitability (ESG-P) dimensions over the 2008–2021 period. Fourteen performance indicators were selected to reflect the bank’s multi-dimensional sustainability profile. Indicator weights were determined objectively employig the LOPCOW technique, while the bank’s annual performance rankings were obtained via the AROMAN method. The weighting analysis revealed that innovation, community, and corporate social responsibility (CSR) strategies had the most substantial influence on the bank’s performance. In contrast, indicators related to human rights and certain profitability metrics exhibited relatively lower weight. Ranking outputs indicated notable fluctuations in Bank of America’s ESG-P performance over the years, with 2019 emerging as the most successful year and 2008 as the least. Furthermore, sensitivity analyses validated the stability and reliability of the proposed hybrid decision-making framework.

Abstract

This paper proposes a hybrid multi-criteria decision-making (MCDM) framework to comprehensively assess the multi-dimensional sustainability performance in the banking industry. The suggested framework integrates the Logarithmic Percentage Change-driven Objective Weighting (LOPCOW) and the Alternative Ranking Order Method Accounting for Two-Step Normalization (AROMAN) to ensure objective, consistent, and robust evaluation. The proposed hybrid framework is empirically applied to a real-world case study of Bank of America-recognized as the most valuable banking brand in the United States-to assess its performance across Environmental, Social, Governance, and Profitability (ESG-P) dimensions over the 2008–2021 period. Fourteen performance indicators were selected to reflect the bank’s multi-dimensional sustainability profile. Indicator weights were determined objectively employig the LOPCOW technique, while the bank’s annual performance rankings were obtained via the AROMAN method. The weighting analysis revealed that innovation, community, and corporate social responsibility (CSR) strategies had the most substantial influence on the bank’s performance. In contrast, indicators related to human rights and certain profitability metrics exhibited relatively lower weight. Ranking outputs indicated notable fluctuations in Bank of America’s ESG-P performance over the years, with 2019 emerging as the most successful year and 2008 as the least. Furthermore, sensitivity analyses validated the stability and reliability of the proposed hybrid decision-making framework.

Yazarlar

Osman Yavuz AKBULUT

Anahtar Kelimeler

Banking sector, Sustainability performance, MCDM, LOPCOW, AROMAN

JEL Codes

C54, G17, G21, G32, G53

Yayın Bilgileri

Cilt 5, Sayı 2, 2025 · Sayfa 29-47

DOI: 10.52898/ijif.2025.8

Dosyalar