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Investigation on Financial Industry Sustainable Development Indicators
Journal article   Peer reviewed

Investigation on Financial Industry Sustainable Development Indicators

Yin-Che Chen and Tzu-Chi Lin
Journal of Quality, Vol.30(6), pp.373-394
12/2023

Abstract

corporate governance financial industry fuzzy analytic hierarchy process social inclusiveness sustainable development Safety Risk Reliability and Quality Management Science and Operations Research
In the early days, the promotion of sustainable development in the financial industry emphasized environmental factors. Today, social and governance factors are also considered. However, studies on the correlation between environmental, social, and governance investing and sustainable financial industry development in Taiwan have mostly focused on financial indicators such as stock returns, company stock prices, and financial performance. Few have examined the statuses of financial companies in fulfilling environmental, social, and governance investing. This study aims to build a financial industry sustainability model indicator framework through modified Delphi method and fuzzy analytic hierarchy process. Overall, corporate governance is the most weighted dimension (0.493), with “protecting customer data and rights, financial services, and corporate information assets from threats through corporate security governance and technological protection” being its most critical indicator (0.210). Sustainable development is the second highest weighted dimension (0.319), with “promoting green financial products and services” being its most critical indicator. Social inclusiveness is the lowest weighted dimension (0.188), with “providing employees with health care and workplace safety measures” being its most critical indicator (0.281). All the dimensions exhibit consistency ratios lower than 0.1, indicating that the expert responses fulfill the consistency requirements. Suggestions for business practice and further research on the corporate governance, social inclusiveness, and sustainable development of the financial industry are presented according to the study results.

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